Advanced Micro Devices (AMD) received another downgrade on Thursday, days after Goldman Sachs and HSBC downgraded the stock. 

Wolfe Research analyst Chris Caso downgraded AMD from Buy to Peer Perform on Thursday. 

Caso also trimmed his rating on AMD shares and removed his $210 price target. 

Shares of semiconductor manufacturers such as Nvidia, Marvell Technology, and Applied Materials saw gains following Taiwan Semiconductor Manufacturing’s earnings report on Thursday. 

However, AMD’s stock lagged, dipping 0.1% to $119.83 in morning trading.

Invezz takes a look at why are analysts losing faith in the stock, and a likely silver lining

AMD’s data-center GPU revenue is below expectations

Wolfe Research downgraded AMD after trimming its first-quarter revenue and earnings forecasts.

The firm now expects $6.6 billion in revenue and 80 cents per share in earnings, down from $7.04 billion and 93 cents per share, respectively.

These revised figures fall short of Wall Street’s consensus of $7.04 billion and 95 cents per share.

The downgrades stem from weaker-than-anticipated data-center GPU revenue, a critical component of AMD’s product line for AI workloads.

Graphics processing units (GPUs) are pivotal for training machine learning models, but Wolfe Research highlighted that AMD’s data-center GPU business is “running below expectations.”

The firm also slashed its full-year revenue estimate to $29.9 billion, a sharp drop from its previous projection of $33.6 billion, citing slow PC seasonality, gaming revenue weakness, and competitive pressures.

Other challenges include slow personal-computer seasonality coming off a strong fourth quarter and continued weakness in gaming revenue, Caso said.

AMD stock: rising competition in AI and custom CPUs

Goldman Sachs lowered its AMD rating from “Buy” to “Neutral” and cut its price target from $175 to $129.

Analyst Toshiya Hari expressed concerns about rising competition in accelerated computing and the growing adoption of Arm-based custom CPUs, which could disrupt AMD’s revenue growth.

While AMD has made strides in taking market share from Intel in x86-based computing, Goldman Sachs noted the company faces increasing challenges in maintaining its momentum.

Additionally, AMD’s operating expenses are expected to rise, which could pressure profit margins.

Goldman Sachs pointed out that AMD’s stock has risen 50% since being added to their Buy list on November 4, 2020.

However, this performance trails the S&P 500’s 72% increase over the same period.

Hari said this is because AMD’s growth in data-center GPUs has been slower than anticipated, further dampening optimism about its competitive position in AI.

AMD’s AI chip roadmap ‘less competitive’

HSBC delivered a double downgrade, lowering AMD’s rating from “Buy” to “Reduce” and cutting its price target to $110 from $200.

The firm raised concerns about AMD’s AI chip roadmap, calling it “less competitive” than initially expected.

HSBC analysts noted weaker demand for AMD’s MI325 GPU and questioned the potential of its upcoming MI350 chip to compete effectively with Nvidia’s dominant AI offerings.

HSBC also reduced its fiscal 2025 AI GPU revenue forecast for AMD from $12.3 billion to $8.1 billion, well below the consensus estimate of $9.5 billion.

The analysts warned of further downside, with AMD shares already losing 24% over the past three months.

MI350 chip series could act as a ‘catalyst’ for AMD

There is some optimism for AMD’s future. Analyst Caso highlighted that the upcoming MI350 chip series, set to launch in the second half of the year, could act as a “catalyst” for the company.

Unlike the MI325, which focuses primarily on increasing memory capacity, the MI350 is expected to feature a more substantial redesign and significant upgrades.

Additionally, Dell Technologies recently announced plans to integrate AMD processors into its corporate-targeted computers for the first time.

This move, previously limited to Dell’s consumer PC lineup, signals potential market share gains for AMD in the client computing segment, Caso noted.

The post AMD faces analyst downgrades: could the MI350 chip series boost stock performance? appeared first on Invezz

As tax season approaches, millions of Americans are gearing up to prepare their 2024 tax returns. However, for those involved in cryptocurrency transactions, a significant shift is on the horizon.

Starting in 2025, new third-party reporting requirements will compel centralized crypto platforms like Coinbase and Gemini to report users’ transactions directly to the IRS (Internal Revenue Services).

This landmark move is designed to improve tax compliance and transparency in the burgeoning digital asset market.

Centralized platforms under the microscope

The IRS has announced that beginning with the 2025 tax year, custodial platforms dealing in cryptocurrencies will be required to provide transaction data on a new tax form, the 1099-DA.

This form, which will be sent to both taxpayers and the IRS in early 2026, will include detailed records of purchases and sales conducted on these platforms.

According to the IRS, brokers obligated to comply include custodial trading platforms, hosted wallet providers, and certain payment processors handling digital assets.

While brokers are not required to report cost basis — the original purchase price of a digital asset used to calculate taxable gains — until 2026, they will document gross proceeds from transactions starting in 2025.

The IRS has emphasized that the new rules are not introducing additional taxes but are aimed at ensuring taxpayers meet their existing obligations.

Failure to include 1099-DA information on 2025 tax returns could trigger discrepancies, as the IRS will already have the data on file.

Decentralized exchanges: a delayed timeline

For crypto investors who prefer decentralized platforms like Uniswap or Sushiswap, the timeline for compliance is less immediate.

These platforms, which facilitate wallet-to-wallet transactions without holding custody of assets, will not be subject to third-party reporting requirements until 2027.

When these rules take effect, decentralized platforms will only report gross proceeds from transactions.

Unlike centralized exchanges, they will not provide cost-basis information since they do not manage or store users’ digital assets.

In a CNN report, Jessalyn Dean, Vice President of Tax Information at Ledgible, a crypto tax software company, underscores the importance of personal record-keeping for users of decentralized platforms.

Without comprehensive reporting from these exchanges, taxpayers will bear greater responsibility for accurately calculating their taxable gains and losses.

Bitcoin ETFs and taxable events

The rise of spot bitcoin exchange-traded funds (ETFs) has added another layer of complexity to crypto tax reporting.

Investors in these funds should be aware that they too will receive 1099-B or 1099-DA forms from ETF providers.

Unlike traditional stocks, bitcoin ETFs may generate taxable events even without direct sales by investors.

This is because ETF managers often sell portions of their holdings to cover expenses, creating gains or losses that are passed on to shareholders.

“there’s a gain or loss on the sale inside the fund and investors will have to calculate their applicable portion of that,” Dean explained.

Dean advises bitcoin ETF investors to consult tax professionals to ensure compliance with these nuanced rules.

The introduction of the 1099-DA form is part of a broader effort by the IRS and the US Treasury to simplify tax compliance in the digital asset space.

Ledgible CEO Kell Canty explains that these reporting requirements are not a new tax but a mechanism to reduce inadvertent errors and improve transparency.

The US Treasury has echoed this sentiment, stating that the changes aim to remind taxpayers of their obligations and streamline the filing process.

By ensuring that more transactions are reported, the government hopes to close gaps in compliance and reduce the administrative burden on taxpayers.

The post Cryptocurrency tax rules revamped: what 2025 compliance changes mean for your wallet appeared first on Invezz

India’s economic growth is set to maintain a steady pace of 6.7% annually for the next two fiscal years, as per the World Bank’s latest projections.

This forecast positions India as a resilient force in South Asia’s recovery, bolstered by robust private consumption and government-led initiatives.

With global economic uncertainty casting a shadow, India’s balanced mix of domestic demand, manufacturing revival, and sustained service sector growth stands out as a key factor in maintaining its trajectory.

This consistency underlines India’s growing role as a stabilising economic force in a volatile global landscape.

The services sector fuels India’s growth

The World Bank’s analysis emphasises that the services sector will continue to drive India’s growth, benefiting from structural reforms and expanding digitalisation.

The manufacturing sector, although facing challenges in the short term, is projected to gain momentum as government policies aimed at ease of doing business and infrastructure upgrades take effect.

These initiatives are expected to attract steady private investment, offsetting a predicted moderation in public spending.

India’s rural economy is also contributing significantly to private consumption.

Improved rural incomes, alongside higher agricultural output, have reinforced demand.

This dynamic creates a positive feedback loop, where rural prosperity supports consumer spending, which in turn aids broader economic recovery.

Private investment to anchor medium-term expansion

A notable aspect of India’s growth narrative is the anticipated shift in the investment landscape. The World Bank highlights a gradual transition from public to private sector-led investments.

Infrastructure projects and digital transformation are seen as catalysts for attracting foreign direct investment, particularly in green energy and technology sectors.

This shift is expected to mitigate risks associated with global economic headwinds.

While manufacturing experienced some softness, improvements in supply chain resilience and trade logistics are expected to strengthen industrial activity.

The government’s emphasis on reducing bureaucratic hurdles further enhances investor confidence.

India as a stabilising force

In comparison to its South Asian neighbours, India’s growth trajectory remains a standout.

While Pakistan and Sri Lanka have shown signs of recovery after adopting stringent macroeconomic reforms, their growth rates remain subdued.

In Bangladesh, political instability and supply-side challenges have hindered industrial progress, with growth expected to dip to 4.1% in FY2024/25.

Excluding India, South Asia’s growth is forecast at 3.9% in 2024, rising marginally to 4.3% by 2026.

This disparity underscores India’s role as a stabilising force in the region, contributing significantly to South Asia’s collective economic output.

The World Bank’s projection of 6.7% growth for India reflects the country’s ability to navigate global uncertainties while leveraging domestic opportunities.

With policy support for key sectors, rising private investments, and a focus on digital and green infrastructure, India is poised to sustain its position as an economic leader in the region.

The post World Bank forecasts 6.7% growth for India over the next two years appeared first on Invezz

China’s population dynamics remain a critical challenge for its economic and social stability.

Despite a modest rise in births in 2024, the nation’s population shrank for the third consecutive year, highlighting systemic issues that years of government interventions have yet to resolve.

The total population fell by over 1.39 million to 1.408 billion, even though 9.54 million babies were born this year—520,000 more than the previous year. This paradox points to deeper demographic shifts beyond immediate birth rate fluctuations.

China’s population problem

The decline in China’s population reflects a shrinking workforce and an ageing demographic, both of which pose long-term economic risks.

Over decades, the workforce has consistently contracted, reducing productivity and innovation potential.

Meanwhile, the proportion of elderly citizens continues to rise, putting enormous pressure on China’s pension and healthcare systems.

Policies introduced in recent years to counter these trends have had limited impact.

Furthermore, government initiatives to encourage larger families—such as expanded access to childcare, housing support, and healthcare—have yet to yield significant results.

The rising costs of childcare and education, coupled with job uncertainty and a slowing economy, have deterred many young Chinese from marrying and starting families.

A 12.4% increase in marriages in 2023, largely delayed by the COVID-19 pandemic, contributed to a rebound in births in 2024, according to demographers.

However, the birth rate is expected to decline again in 2025.

In China, marriages are a key indicator of birth rates, as many single women are ineligible for child-raising benefits.

China’s one-child policy

China’s current demographic challenges are rooted in its restrictive family planning policies of the past.

The one-child policy, enforced for decades, created a deeply ingrained cultural norm favouring smaller families.

When the policy was relaxed in 2016 to allow two children per family, and later expanded further, the anticipated baby boom failed to materialise.

Data reveals that the number of births in 2024, although slightly higher than in 2023, was still the second lowest since the establishment of the People’s Republic of China in 1949.

Bloomberg Intelligence projects that China’s population could fall to 1.36 billion by 2035—levels last seen over a decade ago—unless substantial structural changes occur.

What does this mean for China’s economy?

The economic repercussions of a declining population are vast. Fewer working-age individuals mean slower economic growth and a diminished capacity to support a growing elderly population.

China’s pension system, already underfunded, is expected to face severe strain, while plans to raise the retirement age—announced in 2023—have been met with widespread public resistance.

Experts argue that addressing this demographic crisis requires more than piecemeal policy adjustments.

Comprehensive reforms are necessary to make childcare and education more affordable, ensure equitable access to healthcare, and reshape societal perceptions about family life.

Without such measures, China’s economic resilience may be at risk, potentially affecting its global standing.

The post Why is China’s population shrinking despite a rise in newborns? appeared first on Invezz