AMD Shares Plunge 16%, Dragging Down Semiconductor Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy AMD?
Source: seekingalpha
- AMD Stock Drop: AMD shares plummeted 16% by noon on Wednesday, despite reporting fourth-quarter results and guidance that exceeded market expectations, indicating a pessimistic sentiment in the semiconductor sector that could undermine investor confidence.
- Sector-wide Decline: The Philadelphia Semiconductor Index (SOX) fell 4.7%, mirroring AMD's performance and reflecting the pressure faced by the entire industry, which may lead to capital outflows and valuation adjustments.
- Weak Employment Data Impact: The U.S. private sector added only 22,000 jobs in January, significantly below the expected 45,000, with December's figures also revised down, raising concerns about economic slowdown and potentially exacerbating market volatility.
- Outlier: Silicon Labs: In stark contrast to the broader market, Silicon Laboratories' stock surged nearly 50% following Texas Instruments' announcement of a definitive agreement to acquire the company for about $7.5 billion in an all-cash deal, highlighting active merger activity within the industry.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 208.440
Low
200.00
Averages
284.10
High
377.00
Current: 208.440
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) 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, GPUs, 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+, and 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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- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, helping to assess whether the current price is overvalued or undervalued, which can influence investment decisions.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, allowing for flexibility in responding to market changes.
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See More
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- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing concerns that CEO Satya Nadella has lost the AI narrative; however, the club maintains a long-term positive outlook on Microsoft shares, indicating confidence in its future performance.
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- Surge in Codex Usage: Following the release of the new GPT-5.3-Codex model and a standalone Mac app, Codex usage surged by approximately 50% in the past week, enhancing the product's market appeal and potentially driving future revenue growth.
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- Executive Departures Impact: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold indicates potential internal management issues, which could exacerbate market concerns regarding the company's governance structure.
- Cleveland-Cliffs Poor Performance: Cleveland-Cliffs reported a wider-than-expected adjusted EBITDA loss of $21 million, primarily due to weakness in the auto and Canadian markets; although the company anticipates improvements by 2026, it still faces short-term market challenges.
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See More
Future Prospects for Semiconductors: Technical Signals Indicate Potential Gains for Three Stocks.
Technology Sector Performance: The technology sector saw a 4% surge on Friday, as indicated by the State Street Technology Select Sector SPDR ETF.
Weekly Closing Status: Despite the Friday surge, the ETF closed the week down 1.9%, marking its second-largest trading volume in nearly four years.
2026 Performance Context: Technology remains the worst-performing sector among the 11 S&P sectors in 2026, with a decline of 2%.
Market Trends: The fluctuations highlight ongoing volatility and challenges within the technology sector amidst broader market conditions.
See More
Analysis of SOXL ETF's 52-Week Price Fluctuations
- Price Range Analysis: SOXL ETF's 52-week low is $7.225 per share, with a high of $71.98, and the latest trade at $62.88 indicates significant volatility over the past year, reflecting strong market interest in the semiconductor sector.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, helping to assess whether the current price is overvalued or undervalued, which can influence investment decisions.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, allowing for flexibility in responding to market changes.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs with notable inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, impacting the performance of individual stocks within the ETF.
See More
