Latest Wall Street Ratings: Citi Upgrades AMD to Buy, Stifel Downgrades Adobe to Hold
Miles Bennett
Multiple firms reshuffled ratings on Friday — Citi upgraded AMD to buy while Stifel cut Adobe to hold, a split that captures the structural divergence between GPU compute winners and creative-software incumbents under the AI wave.
Why is Citi bullish on AMD now?
Citi upgraded AMD from neutral to buy. The core thesis: AMD is becoming a legitimate second supplier in the GPU market.
The note flags that AMD is poised to win a sizable order at Meta. This means → AMD's GPUs are no longer a back-up option — they are entering the primary procurement list of a top-tier buyer.
Citi had already been constructive on CPU demand driven by agentic AI (AI that executes tasks autonomously, not just answers questions). This upgrade extends the bullish view to AMD's GPU business.
Why did Stifel turn cautious on Adobe?
Stifel downgraded Adobe from buy to hold, triggered by too many negative catalysts after earnings.
The bigger concern is leadership turmoil: CFO Dan Durn is departing, and CEO Shantanu Narayen is expected to step down this year. In plain terms = the top two executives are leaving at nearly the same time, raising questions about strategic continuity.
Dual executive departures layered on earnings pressure led Stifel to conclude that holding is more prudent than chasing at current levels.
What did Wolfe's first SpaceX rating say?
Wolfe Research initiated coverage of SpaceX with an outperform rating.
The note used vivid language: "SpaceX turned competitive moats into an ocean of opportunity — we believe others cannot cross it."
Two pillars support the near-term valuation: internal launch costs pushed to near zero + willingness to push past scale boundaries. This means → Wolfe sees SpaceX's cost advantage not as a lead, but as a gap competitors simply cannot close.
Who else got re-rated?
UBS reiterated a buy on Broadcom but acknowledged that upside from Google's chip partnership "has been somewhat questioned due to near-term roadmap shifts and supply challenges."
Goldman Sachs upgraded New Oriental (新东方) from neutral to buy — target price $65 (US-listed) / HK$50 (HK-listed) — citing valuation appeal.
JPMorgan upgraded Kratos Defense & Security from neutral to overweight, recommending a buy-the-dip approach.
What does this round of rating divergence reflect?
AMD up, Adobe down — on the surface, two separate stories. Underneath, the same structural line: the tech sector is splitting internally under the AI wave.
On the GPU-compute side, institutions keep adding exposure. On the creative-software side, business-model transition pressure + leadership upheaval = institutions turning cautious.
This reflects a market voting with ratings: the closer a company sits to "compute infrastructure," the more favour it receives; the closer it sits to "AI monetisation still uncertain," the more pressure it faces. The next key checkpoint: whether Adobe's executive transition disrupts strategic execution.
Content is for reference only, not financial advice.