AMD Tumbles 5.7% as AI Trade Cracks Widen Across Chip Sector
AMD has more than doubled off its 52-week low of $188.22.
Summary
AMD fell 5.7% to $570.82 on Wednesday, its worst single-day drop since Aug. 5, as worries about AI demand sustainability hit chip stocks broadly. Nvidia, Broadcom, and TSMC also declined 3-4%, while Marvell sank 8.7%. The selloff was driven by ASML's strong demand forecast implying higher chipmaking equipment costs and a corporate bond selloff at cloud provider CoreWeave, raising doubts about AI infrastructure spending. AMD's high beta of 3.2 makes it more vulnerable to sector-wide swings, and its distant second-place position in AI training chips leaves it exposed if demand softens. Upcoming cloud provider spending forecasts later this month and early next could either confirm or further shake AI investment expectations.
At the time of this announcement, AMD was trading at $568.75 on NASDAQ in the Technology sector, with a market capitalization of approximately $931.8B. The 52-week trading range was $188.22 to $658.52. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.