Advanced Micro Devices (NASDAQ: AMD) stock fell over 4% on Monday after registering a new 52-week and all-time high last week. This decline, amidst a lack of company news, suggests investors are selling their shares to lock in profits amid broader market weaknesses.
In this week’s pivotal economic update, the February Consumer Price Index (CPI) report takes center stage, poised to significantly impact the Federal Reserve’s rate decision on March 20. The impending CPI data could signal a noteworthy uptick in inflation, prompting concerns over rising costs for Advanced Micro Devices (AMD) across materials, labor, and operational facets. Such a scenario might trigger an escalation in production expenses for AMD, influencing profit margins and, subsequently, the company’s stock valuation.
On Monday, shares of various semiconductor stocks saw a downturn, potentially linked to the recent struggles of NVIDIA Corporation (NASDAQ: NVDA). Reports emerged that NVIDIA is encountering legal action from three authors who allege unauthorized use of their copyrighted works in training the company’s AI platform.
Meanwhile, analysts at Melius Research have painted a brighter picture for AMD, dubbing it the “Nvidia-Mini.” The research firm revised its price target for AMD, elevating it from $192 to $265 per share, while maintaining a Buy rating. This upward adjustment in the price target is attributed to AMD’s promising prospects in the data center sector in the short and long term.
Advanced Micro Devices (NASDAQ: AMD) Stock Reaction
AMD stock dropped -4.34% to close at $198.39 on Monday. The traders had exchanged hands with 72,462,714 (72.46 million) shares compared to the average daily trading volume of 76.25 million.
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