AMD shares fall as analysts worry AI chip targets may be ambitious
Advanced Micro Devices's shares fell about 6% on Wednesday as analysts raised concerns that the chip designer's targets for an artificial intelligence (AI) ramp-up may be too ambitious.
The fall came amid a broader sell-off in the tech sector that saw megacap stocks fall 1.5% to 5% and the Philadelphia SE Semiconductor Index drop 3.5%. Wall Street fell on Wednesday after rating agency Fitch downgraded the U.S. government's credit rating. $Advanced Micro Devices (AMD.US)$ $PHLX Semiconductor Index (.SOX.US)$ $Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$
AMD's stock had risen 4% in extended trading on Tuesday after the company said customer interest was "very high" for its upcoming MI300 AI chip, which will ramp up in the fourth quarter.
AI has been a key theme in the chip sector so far this year, driving shares of chip companies and helping Nvidia $NVIDIA (NVDA.US)$ become the first and only semiconductor firm to be valued at more than a trillion dollars.
Investors hope AMD will emerge with a challenger chip to Nvidia's most powerful AI semiconductors and help in fulfilling strong demand for chips that can power applications like chatbot ChatGPT.
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