Chip Stocks Are Bleeding - Here’s Why AMD Is Down 8% Today

TLDR

• AMD fell 8.2% to $479.24, dragged down by a semiconductor sector selloff tied to AI spending concerns
• Intel’s post-earnings drop last Friday sparked the broader chip weakness
• Alphabet’s rising AI capex also rattled investors across the sector
• AMD reports earnings August 4; Wall Street is watching data center and MI-series GPU demand
• Analysts remain bullish with a “Moderate Buy” rating and average price target of $522.43

AMD dropped 8.2% to $479.24 in mid-day trading on Monday, caught in a semiconductor sector selloff driven by growing concern over AI infrastructure spending.

Advanced Micro Devices, Inc., AMD

The immediate trigger came from Intel. Despite posting its fastest revenue growth in roughly 15 years last Friday, Intel’s stock fell sharply after the company revised its capital expenditure guidance upward and continued to report foundry losses. Investors took that as a warning sign: strong revenue alone isn’t enough anymore. The market wants proof that AI spending is actually paying off.

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