AMD (NASDAQ:AMD) tumbled 6.85% to $111.32 as of 12:15 PM ET with Citi cutting its rating to Neutral from Buy and slashed its price target from $170 to $110. The firm cited concerns over slowing AI revenue growth and margin pressure.

• Warning! GuruFocus has detected 6 Warning Signs with AMD.

Citi analysts, led by Christopher Danely, said that while AMD's CPU sales were strong, its Data Center revenue missed expectations. They also pointed out that AMD didn't offer AI revenue guidance, and early 2025 AI sales could be flat or even decline.

Other firms also trimmed their price targets:

• KeyBanc lowered its target to $140 from $150 but still sees upside, expecting Data Center growth to pick up in the second half of 2025.
• Evercore cut its target to $147 from $198 but remains bullish on AMD's long-term AI potential.
• Mizuho dropped its target to $140 from $160 while maintaining an Outperform rating.

Despite the dip, analysts believe AMD's AI business could rebound later in the year.