Shares of Advanced Micro Devices Inc AMD are continuing their slide Wednesday morning, extending their downturn from Tuesday when several high-profile, AI-related stocks came under pressure.
Shares of several chip stocks fell Tuesday after Intel Corp INTC bolstered its capital with a $2 billion investment from SoftBank, which acquired a stake of just under 2% at $23 per share.
This deal makes SoftBank Intel’s sixth-largest shareholder and comes amid reports that the U.S. government is also considering a 10% stake for national security reasons.
What To Know: This week’s pessimism for AMD contrasts sharply with the company’s strong operational performance and optimistic forecast. Earlier this month, AMD reported second-quarter earnings that surpassed revenue expectations, hitting $7.69 billion, a 32% increase year-over-year.
The growth was driven by robust performance in its Data Center and Gaming segments. While earnings per share slightly missed estimates, the company’s outlook remains bright.
CEO Dr. Lisa Su highlighted “robust demand” for its AI portfolio and stated the company is “well positioned to deliver significant growth in the second half of the year,” driven by the ramp-up of its new Instinct MI350 series accelerators.
Despite the positive fundamentals, AMD is navigating an intensely competitive landscape against rivals Nvidia and Intel. However, many analysts remain constructive, citing the upcoming AI product cycle as a key catalyst.
While the stock is currently facing short-term volatility, its strong positioning in the data center and AI markets underpins a compelling long-term growth narrative.
Benzinga Edge Rankings: Based on Benzinga Edge rankings, AMD showcases a compelling profile for certain investment styles but raises a significant flag for others.
The company scores exceptionally high on Growth (93.50) and Momentum (86.14), indicating strong business expansion and positive stock price trends. Its Quality (75.61) score is also robust, suggesting solid financial health. In stark contrast, AMD receives a very low Value (11.84) score.
This combination suggests that while AMD is a high-quality, rapidly growing company with strong market momentum, investors are paying a steep premium for that growth, and it may be considered overvalued at its current price.
Price Action: According to data from Benzinga Pro, AMD shares are trading lower by 2.1% to $163.00. The stock is otherwise higher by 31% on a year-to-date basis. The stock has a 52-week high of $186.65 and a 52-week low of $76.48.
Read Also: Carvana Stock Is Sliding Wednesday: What’s Driving The Action?
How To Buy AMD Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Advanced Micro Devices’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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