It's a little more complicated than that.
When the disease first began showing up in the U.S. in 1981, based on its prevalance among men who have sex with men, it was called, colloquially, "Gay Cancer", and even among medical professionals, the first term was GRID (Gay-Related Immune Deficiency).
AYDS diet candy had been on the market since 1937, and was at its sales peak in the 1970s and 1980s. The ads were all over radio and TV in those years. Here's a spot from 1981:
In September of 1982, the Centers for Disease Control, learning that GRID could transfer by other than sexual means (blood transfusions), re-named it Acquired Immune Deficiency Syndrome. That produced the acronym AIDS, and given that one of the effects of the disease was withering away, the association was more damaging than just the common name.
Yeah, the AYDS candy folks could have sued the CDC, but those were the good guys trying to raise understanding and save lives, and that's trouble nobody wants.