Jim Cramer defends AMD against analyst downgrade, citing CPU market growth of 35% in May versus November forecast of 18%

An analyst downgrade from Buy to Hold was issued the day before AMD's earnings announcement. Cramer stated on air that the downgrade was 'fanciful and would be wrong,' and that AMD subsequently 'blew away the estimates,' causing the stock to jump more than 18%.

The downgrade claimed first-quarter results and second-quarter guidance would be in line with estimates with limited upside, that 2026 server CPU upside is capped due to foundry capacity constraints, and that AMD had already been rerated with insufficient momentum remaining. Cramer disputed all three points, noting CEO Lisa Su directly told him the foundry capacity issue is 'simply not a problem.'

AMD manufactures processors, graphics cards, and AI chips for computers, servers, and gaming systems, with products including Ryzen and Radeon.