AMD stumbles again.

$Advanced Micro Devices(AMD.US)$ $PHLX Semiconductor Index(.SOX.US)$ $Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US)$ $NVIDIA(NVDA.US)$ $GlobalFoundries(GFS.US)$
In other words, volatility is part of what makes AMD tick.To a certain extent, AMD's sharp declines in past periods were somewhat justified. For example, AMD was justifiably sold off by the market during the 2010-2015 period as personal computer sales took a huge hit, when another chip maker, Globalfoundries, faced the same dilemma.

And right now, the risks facing AMD are also real. The semiconductor industry is notoriously cyclical, and downturns are coming - for years, demand in end markets such as gaming, automotive, data centers, and even personal computers may be higher than ever. AMD's impressive growth is, to some extent, driven by rising demand. But if demand wanes, AMD's performance will also decline.

And last week, investors were again spooked by weaker-than-expected results from NVIDIA , followed by disclosures from both Nvidia and AMD that the U.S. government is restricting AI chips from both companies.

As a result, AMD fell another 12 percent this week, and investors are worried that such a decline will continue.