Advanced Micro Devices (AMD) has received a downgrade from Melius Research. The firm lowered its rating on the stock to Hold from Buy, citing earnings risks due to increasing competition — particularly from Nvidia (NVDA).

Through its ARM-based CPUs specialized for artificial intelligence workloads, the research company cautioned in a note to investors that Nvidia ( NVDA, Financials ), which leads the graphics processing unit category, may gain significant ground in both servers and PCs.