Other chip firms such as Arm and Qualcomm (QCOM.O), opens new tab also fell more than 2%. But AI chip leader Nvidia (NVDA.O), opens new tab was down just 0.3% in a sign that investors did not expect a similar supply shortage impact on the company. Both Nvidia and AMD rely on chip-making giant TSMC to manufacture their advanced AI chips, but analysts have so far shown little concern about Nvidia's AI chip supply. "AI still dominates this (AMD) story, and while the company did raise (sales expectations) every quarter this year, the concern from here is that AMD won't be able to provide upside to Street estimates that are already $8 billion-$9 billion for calendar 2025," Jefferies analysts said. At least 10 analysts lowered their target price on the AMD stock, while 8 raised their views, moving the median to $187.50, according to LSEG data. That represents an upside of nearly 13% to the company's last closing price.