With 2025 approaching, there is a vast shift in the industry approaching for AMD, according to the latest analysis from Bank Of America. AMD shares rating slipped from ‘Buy’ to ‘Neutral’ with a slump in value to $155 from the previous $180. This is due to the forecast for the competition it has set to receive from tech competitors Marvell and Broadcom. The justification for this decline was revealed to be that because of the surging demand for AI chips, both Marvell and Broadcom will gain a sizeable market share, while AMD might not be able to meet this demand, and as a result, the growth will be stifled.
Let’s look at the different factors that have shaped the possibility for Bank Of America to believe AMD will be ceding ground to its competitors, Marvell and Broadcom.
What Have Marvell And Broadcom Done To Potentially Claw AMD’s Market Share Within The AI Chip Market?
The renewed focus and shifting of the industry trend to incorporate AI into basic and advanced computer applications is creating a gap in the traditional computer processor market. Basically, the aggressive push by Marvell and Broadcom to develop specialized computer chips that focus on complex artificial intelligence tasks is a power move that will cause a surge in demand for them.
The specialized functionality in the AI chips by Marvell and Broadcom offers more efficient processing speed, increased performance capability, and extremely minimum latency, not to mention all-around better energy management. When compared to the conventional CPUs, it’s not even close, as both Marvell and Broadcom have the superior product.
Now, it stands to reason that such competition to AMD, which has so far dominated the PC space, will need to adapt to this development. Otherwise, the assessment provided by Bank Of America is wholly valid. The demand for hardware that relies heavily on AI will need to be taken into account by AMD if they wish to turn this particular situation around. On the flip side, Marvell and Broadcom are on the verge of a steady rise in revenue if they’re able to capitalize on their advanced AI chips and the demand that’s currently risen for them.
Related: There are alarm bells ringing within the tech market which you can read up about in our piece Trump Tariffs Trouble Tech Titans, Tinkering Tactical Tiptoes.
What Should Be AMD’s Strategy To Mount A Comeback And Alleviate Shareholder’s Concerns?
The Bank Of America did share some insight regarding how AMD could also turn this potential obstacle into an opportunity to get ahead and cement its position once more. This strategy is only theoretical so far, but AMD has proven resourceful in the past, too, so not completely outside the realm of possibility. AMD is a viable alternative to Intel products utilizing the x86 processors, neither Marvell nor Broadcom are directly competing here, so it’s a great avenue to fully secure revenue.
The goal shouldn’t be to focus fully on just AI development technology and chips; rather, it should be diversifying the output between traditional trajectory hardware and investing in AI to compete with the offerings of Marvell and Broadcom. There is a strong potential to increase growth by as high as 15% to 20%, according to The Back Of America. The perception that AI chips will completely replace AMD products has been casually dismissed by Lisa Su, the CEO of AMD since 2014. She goes on to state that tech companies will diversify their utility between using custom AI chips and AMD products. Calling what others are classifying as a potential setback as an ‘opportunity.’
Miss Lisa Su is certainly capable of giving her opinion on this with authority because of her track record as CEO of AMD saw the company’s historic rise in terms of revenue and market share. Just the latest financial Q3 2025 shows that her influence is instrumental to AMD’s success, with the company’s sales revenue hitting a walloping $6.8 billion.
Conclusion
Despite the apparent setbacks and potential issues from the competitors, AMD’s leadership under CEO Lisa Su has shown that it’s more than capable of handling challenges to growth and attaining market share where there previously seemed none. Through strategic course correction via investments in developing advanced AI processor chips and doubling down on the hardware side, AMD will dispel all doubts about its position in the tech industry. This is our take on the situation, but we want to hear from you. What we want to know is how you see things playing out for AMD. Share your thoughts in the comments below.
In other crisis-hit news, Ubisoft cannot seem to catch a break, you can read more about it in our coverage titled ‘Ubisoft Financial Jeopardy, Shareholders Renew Interest In Buyout’. It’s well worth a read if you hold an interest in video games.
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