Advanced Micro Devices ( (AMD) ) has fallen by -16.53%. Read on to learn why.
Advanced Micro Devices (AMD) has experienced a significant stock price decline of 16.53% over the past week. This drop comes amid broader market concerns, including potential tariffs on semiconductor imports proposed by President Donald Trump, which could impact AMD’s supply chain and production costs. The company’s reliance on Taiwan Semiconductor Manufacturing Company (TSMC) for chip production means that any tariffs could lead to increased costs, putting pressure on AMD’s margins and potentially affecting its revenue and profitability.
Despite these challenges, AMD remains a key player in the booming artificial intelligence (AI) market, which is expected to drive substantial growth in data center capacity. The company has recently revised its projections for the AI accelerator market, anticipating it to reach $500 billion by 2028. This optimism is fueled by AMD’s strategic initiatives, such as the $4.9 billion acquisition of ZT Systems, aimed at strengthening its position in AI infrastructure. However, geopolitical tensions and trade risks, particularly with China, pose additional threats to AMD’s growth prospects.
Investors are closely monitoring AMD’s ability to navigate these challenges while capitalizing on the AI boom. The company’s CEO, Lisa Su, has acknowledged the potential short-term impacts of tariffs but remains optimistic about AMD’s long-term growth in AI and data centers. Analysts have a moderate buy consensus on AMD stock, with a price target suggesting significant upside potential. As AMD continues to adapt to market conditions, its performance will be crucial for investors looking to capitalize on the evolving tech landscape.