AMD Shares Drop Amid Global Chip Selloff and Job Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Yahoo Finance
- Global Chip Market Decline: AMD shares fell 6.5% in morning trading, driven by the AVGO earnings report and a stronger-than-expected jobs report, leading to one of the broadest chip selloffs this year, with South Korea's Kospi down 5.5%, and Samsung and SK Hynix dropping 6.4% and nearly 10%, respectively.
- Expectation Reset: Broadcom's guidance miss reset expectations for hyperscaler AI chip spending, removing the sector's most visible growth catalyst, which raised concerns about future interest rate policies, as indicated by CME FedWatch showing increased rate hike risks by year-end.
- Increased Market Volatility: AMD's stock has experienced 39 moves greater than 5% over the past year, and today's decline indicates that the market considers this news significant but not fundamentally altering its perception of the business, reflecting ongoing confidence in AMD.
- Investor Optimism: Despite the current share price of $483.04, which is still below the 52-week high of $542.52, AMD has risen 116% since the beginning of the year, and analysts remain optimistic about its future performance, with Bank of America raising its price target to $500, anticipating a $1.7 trillion AI data center market by 2030.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 523.200
Low
210.00
Averages
289.13
High
377.00
Current: 523.200
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technological Advancements: The launch of MI350 accelerators not only boosts AMD's technical prowess in the AI sector but also has the potential to attract more enterprise clients, thereby driving future revenue growth and expanding market share.
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