NVIDIA and AMD both saw their price targets cut by TD Cowen today due to problems with compute demand for AMD and potential troubles with next-generation chips for NVIDIA. Both firms have struggled in the stock market this year, with NVIDIA having lost 28% year-to-date while AMD has been down by 31%. TD Cowen has cut NVIDIA's share price target to $140 from an earlier $175 but kept a Buy rating for the stock and maintained it as a Top Compute pick. As for AMD, the firm has reduced the share price target to $110 from $135 and cited tariff-related uncertainty for its decision to do so. AMD, NVIDIA Get Price Targets Slashed By TD Cowen For AMD, TD Cowen sets the dour macroeconomic backdrop at the center of its coverage as it estimates the impact of tariff driven uncertainty on AMD's product demand. Since President Trump announced his tariffs last week, AMD's shares have lost 20.7% and have pared back some of these losses after gaining more than 4% today. AMD's shares, which currently trade around $81, saw their price target cut to $110 from $135 by TD Cowen for a 36% upside. While the firm kept a Buy rating on the stock, it warned that "AMD is fighting both company-specific and broader negative sentiment in compute compounded by tariff overhangs." TD Cowen added that the shares are suffering from a weak data center guidance for the year's frst half, with investors also waiting for the launch of AMD's Instinct accelerator. Due to investors' focus on the data center business, TD Cowen believes that even though AMD can benefit from robust performance in its Client segment, the performance will not translate into share price performance. It notes that "if macro conditions stay as they are currently, estimates will likely come down to reflect the uncertain macro backdrop, but with limited granularity we choose a wait and see approach with our models." While NVIDIA's shares have also taken a beating this year and are down since the tariff announcement, percentage-wise, they've fared better than AMD's stock. Year-to-date and since the tariff announcement, NVIDIA's shares have lost 28% and 9.9%. In its note, TD Cowen reduces NVIDIA's share price target to $140 from $175 and keeps a Buy rating on the stock. The bank also maintained the stock as a Top Pick. The firm believes that NVIDIA's Blackwell GPUs will drive its narrative during the current and next quarters. NVIDIA's Blackwell GB200 server racks will drive share tailwinds, adds TD Cowen, as it outlines that market digestion of the racks in terms of deployment will determine NVIDIA's performance. According to the note, the shift between Blackwell and Blackwell Ultra will also be a key factor in NVIDIA's future. However, the GPU firm's technology lead is indisputable according to TD Cowen. "NVIDIA Remains Our Top Pick in Compute, Though We See Value in Many for Those Willing to Catch a Falling Knife: Overall, our strongest conviction in the compute bucket both near and long-term remains NVIDIA given its tech leadership—a sharp contrast to its now ~15- turn discount its historical median," writes the firm. Deal of the Day