Advanced Micro Devices stock witnessed a pre-market decline on Monday following reports of Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) postponing the delivery of high-end chipmaking equipment.
TSMC, the major AMD supplier, has decided to push back production at its Arizona plant to 2025, citing recruitment difficulties and union opposition as the primary reasons. This delay only exacerbates the challenges already faced by the contract chipmaker due to the ongoing global chip shortage.
TSMC’s decision has intensified concerns about a looming chip supply crunch, especially given the unstoppable growth of the AI sector.
Meanwhile, the AI giant NVIDIA Corporation (NASDAQ: NVDA) faces heightened competition in the gaming GPU market. Major retailers Newegg Commerce, Inc. (NASDAQ: NEGG) and Amazon.com, Inc. (NASDAQ: AMZN) have slashed prices for the NVDA popular RTX 4070 GPUs. This price reduction comes as Advanced Micro Devices, Inc. (NASDAQ: AMD) launches its $500 RX 7800 XT.
The retail giants have reduced the price of the RTX 4070 by $50, bringing it down to $550, and the RTX 4060 Ti 16GB by $50, now available at $450.
Furthermore, the global semiconductor market faces an escalating threat. Huawei Technologies China and Semiconductor Manufacturing International Corp (SMIC) are ramping up efforts to build a domestic chip ecosystem, primarily driven by U.S. semiconductor sanctions on China.
As of the latest update, Advanced Micro Devices stock is trading at $100.28. This represents a 1.17% decline compared to the Friday trading session.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
