tech
Cramer defends AMD after downgrade: 'This stock is going to go up much more'
CNBC's Jim Cramer said he's bullish on AMD despite a recent downgrade, arguing demand for AI-driven CPUs will keep pushing the stock higher.
TL;DR
- Jim Cramer pushed back on HSBC's downgrade of Advanced Micro Devices (AMD), believing the stock has significant upside.
- Demand for CPUs, essential for agentic AI systems and data centers, is surging, benefiting AMD.
- HSBC downgraded AMD to 'hold' due to concerns about exceeding elevated expectations for server CPU growth and reliance on Taiwan Semiconductor Manufacturing Co.'s capacity.
- Cramer argued that supply constraints reinforce demand and pricing power for AMD.
- AMD's shares fell 4% on Monday but are up approximately 58% over the past month.