Advanced Micro Devices (AMD) stock started off Thursday in the green. However, the stock has slipped into the red. A major reason for this was lost steam from a major rival. While the shares were initially up alongside Nvidia’s (NVDA) earnings report, the stock has since fallen. This rise and fall mimicked the movement seen by NVDA stock today.
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Explore NVDS for 2X short leverage on NVDAIt makes sense that AMD stock would move in sympathy with NVDA stock. Both companies operate in the semiconductor sector. Nvidia produces GPUs and the software that supports them. AMD does the same, and also makes CPUs. This means that Nvidia, the leader in the GPU market, is a measuring stick to compare other chipmakers too. If Nvidia’s earnings couldn’t keep its stock up today, it’s only logical that AMD stock would fail to maintain its rally.
The AMD stock drop today could also be tied to other news from the chipmaker. Among that is a new $10 million funding deal to expand AI chip manufacturing in Taiwan. This move comes amid an ongoing AI boom. Both the GPUs and CPUs made by AMD are critical to the servers that power AI. Even so, concerns of an AI bubble have some investors worried about increased AI spending.
How Did AMD & Nvidia Stock Perform Today?
Despite earlier success, AMD stock has fallen roughly 1.44% on Thursday. Investors will note the stock was still up 106.67% year-to-date and 304.28% over the past 12 months. AMD stock trading activity today saw some 13 million shares change hands. For comparison, the stock’s three-month average daily trading volume was about 42 million shares.
Turning to Nvidia, the GPU maker’s stock was down 1.82% today. Traders will also keep in mind that the stock has rallied 17.67% year-to-date and 68.24% over the past 12 months. NVDA stock trading activity for Thursday saw about 116 million shares change hands. For perspective, the company’s three-month average daily trading volume was roughly 151 million shares.
