Why AMD Stock Is Sinking Today

On Tuesday, the shares of Advanced Micro Devices (AMD) experienced a drop in trading, but they partially recovered from early session sell-offs. As of 3 p.m. ET, AMD’s stock was down by 1.5%, with the broader S&P 500 index remaining flat and the Nasdaq Composite index declining by 0.3%. Earlier in the day, the stock had dropped as much as 4.9% before recovering some ground.

Today, following an all-time high reached yesterday during trading, the Nasdaq Composite is experiencing a slight retreat. Selling activities, particularly in stocks like AMD, contributed significantly to driving the index down notably at the start of today’s trade. However, as the day has progressed, there appears to be a reversal trend in valuations.

AMD stock slips as tech rally takes a breather

Lately, tech sector valuations have been exceptionally high. Strong corporate earnings reports, positive industry performance assessments, and anticipation that the Federal Reserve will lower interest rates several times have boosted stock prices. However, AMD’s valuation, along with many other chip stocks, is experiencing a slight pullback today.

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Alongside the increase in profits following the Nasdaq Composite reaching a new record high on Monday, a report from The Wall Street Journal about the Stargate artificial intelligence (AI) project seems to be contributing to the current market downturn. The Stargate initiative is a $500 billion AI investment collaboration involving Softbank, OpenAI, Oracle, and MGX, designed to enhance U.S. AI infrastructure. However, it appears that the project has encountered some initial obstacles, with near-term growth plans reportedly being scaled back.

What’s next for AMD?

The recent surge in enthusiasm about AMD’s potential in artificial intelligence (AI) has significantly boosted its stock, causing it to increase approximately 81% over the past three months, despite today’s dip. In the near future, investors will have a chance to scrutinize the company’s advancements in the AI data center sector more closely.

AMD is set to reveal their second-quarter earnings results on August 5, after the stock market has closed for the day. With the company’s stock value increase, there are high hopes for their performance. The upcoming release of AMD’s MI350 processor and some optimistic information disclosed at their Advancing AI conference recently hint that the company may have positive updates in their report.

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2025-07-22 23:01