Advanced Micro Devices (NASDAQ:AMD) shares came under renewed pressure as Wall Street analysts reduced expectations over the company's position in the artificial intelligence space.

The latest hit came from two analyst downgrades. Jefferies shifted its AMD rating from buy to hold and cut its price target from $135 to $120. Goldman Sachs followed, keeping a neutral stance while lowering its target from $125 to $120. Both moves signaled market doubts about AMD's ability to compete with Nvidia (NVDA) in AI hardware.

The focus is on AMD's MI300x chip, once seen as a potential breakthrough. While specs looked strong, performance benchmarks continue to favor Nvidiaand new products like Blackwell and Rubin could widen that advantage.

In Q4 2024, AMD's data center revenue rose 69% year-over-year but still missed estimates, coming in at $3.9 billion versus the $4.14 billion forecast.

As tech stocks wobbled, AMD shares dropped more than 10% during the final week of March. Enthusiasm from late 2024 has cooled, and the company sits in a holding pattern.

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) faces its own challenges. Amid a $165 billion U.S. expansion, it's juggling investor expectations and political sensitivity. The firm continues to invest in Taiwan while ramping up chip production in Arizona, but its stock has also struggled in 2025.