Good morning. QQQs -13bps following yesterday’s washout although AI semis weaker early to start the day (NVDA - 1.6%). Yields up 1-2bps across the curve. China +50bps. BTC -40bps.
Let’s get to it…
AMD: AMD downgraded to Hold from Buy at Jefferies
Not a ton new here…
Jefferies lowered their rating on AMD from Buy to Hold and reduced their price target from $135 to $120. The downgrade is based on Jefferies' assessment that AMD has "limited traction" in the AI space, their belief that market expectations are overly optimistic, and concerns about increasing competition from Intel. Jefferies notes that their benchmarking analysis indicates Nvidia's H200 delivers significantly higher real-world performance across various open-source models compared to AMD's MI300x. Jefferies says this performance gap highlights the value of Nvidia's mature software ecosystem for GPU optimization, and suggests this advantage will increase as system performance becomes more critical. Jefferies contends that AMD has "considerable ground to cover" before it can effectively compete against Nvidia in this space.
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