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AMD downgraded after BI report on weak demand for its AI chips among AWS customers

  • Bank of America downgraded AMD after concerns about low demand for its AI chips among AWS customers.
  • BofA cited higher competitive risk in the AI market and Nvidia's dominance as reasons for the downgrade.
  • AMD's growth potential is limited due to low AWS customer demand, Nvidia's dominance, and preference for custom chips.
  • Despite challenges, AMD could still succeed in the AI chip market due to Nvidia's supply issues and its strong position in the server chip market.

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