Misryoum: Jim Cramer pushed back on an AMD downgrade, arguing AI-driven CPU demand could keep the stock rising.
A major downgrade can shake confidence fast, but Misryoum says the pushback from market watchers is already reshaping the story around AMD.
In its latest buzz, Misryoum reports that Jim Cramer defended Advanced Micro Devices after HSBC adjusted the rating to hold from buy. Cramer’s core message was straightforward: he believes the company’s position in computing demand is still far from exhausted, especially as AI workloads expand.
The argument centers on CPUs, the chips that power the everyday processing behind many computing tasks.. Misryoum notes that Cramer linked AMD’s relevance to the growing wave of agentic AI. where systems are designed to perform actions with limited oversight.. In that environment. CPUs remain a key ingredient. and Cramer suggested investors may be underestimating how much future demand could translate into continued momentum.
Insight: Downgrades often focus on near-term expectations, but market narratives tend to swing when investors believe a different driver, like AI-powered compute demand, could outpace what analysts have already priced in.
Meanwhile, the downgrade raised concerns that AMD could face challenges in surpassing already elevated expectations for server CPU growth.. Misryoum also highlights the issue of manufacturing constraints: the firm pointed to AMD’s reliance on a major foundry partner. which can limit how quickly chips are produced when demand surges.
By contrast. analysts compared AMD’s setup with Intel’s vertically integrated model. arguing it may be better positioned to deliver “upside surprises” in upcoming quarters.. Misryoum adds that Intel’s structure. including its own chipmaking capabilities. is often viewed as a potential advantage when supply and timing become central to results.
Insight: What matters here isn’t only chip demand, but whether companies can convert demand into shipments and earnings quickly enough to satisfy—and ideally exceed—expectations.
For investors, the debate is now moving toward what comes next. Misryoum notes that AMD is set to report earnings after the close, with attention likely to focus on server performance, supply realities, and whether the AI demand narrative continues to strengthen rather than fade.
Insight: Earnings will be the real test of competing views—whether the downgrade reflects durable limitations or whether the market’s AI-driven optimism has more room to run.