AMD shares tumble amid AI chip sector sell‑off and concerns over Nvidia‑Tesla investment in Samsung
Advanced Micro Devices fell sharply on Thursday as a broad AI‑chip sell‑off spread across the sector after reports that Nvidia and Tesla plan to invest $2.8 billion in Samsung Electro‑Mechanics. The drop was amplified by AMD’s high valuation and recent insider sales. Analysts kept bullish price targets, with Susquehanna raising its target to $620 and Wedbush maintaining an Outperform rating with a $600 target.
Why it matters
The steep price decline reduces AMD’s market value and may trigger stop‑loss orders for traders. Analysts’ higher targets suggest they still expect upside once the sector stabilises, but the immediate downside could affect short‑term positioning.
Key facts
- 1Nvidia and Tesla plan to invest $2.8 billion in Samsung Electro‑Mechanics to build chip substrate factories. investing.com
- 2Insiders sold 231,100 AMD shares worth approximately $114.9 million over the last ninety days. investing.com
- 3Susquehanna raised its price target on AMD to $620. investing.com
- 4Wedbush kept an Outperform rating with a $600 price target. investing.com
- 5Q2 Data Center revenue was $6.718 billion with a 31.3% margin. gurufocus.com
- 6AMD forecasts Q3 revenue of $13 billion and a 56% gross margin. gurufocus.com
Open questions
- Material 1 reports a 5.3% drop to $523.57, while Materials 2 and 3 report a 7.5% drop to $511.41.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.