Advanced Micro Devices, Inc. (AMD) saw a slight decline in its stock price on December 16, 2024, closing at $126.69, down 0.17% from the previous close of $126.91. The stock opened at $125.99 and fluctuated between a low of $123.12 and a high of $127.76, with trading volume reaching 41,743,115 shares, significantly above the average daily volume. The day's movement was influenced by mixed analyst sentiments and a recent price target reduction by Truist, which lowered AMD's target by $11, reflecting concerns over its competitive position against Nvidia and other custom chipmakers.
Despite the broader market's optimism about AI growth, AMD's stock has been underperforming, nearing a 52-week low and trailing the S&P 500 by nearly 20% since late October. Analysts have expressed concerns about AMD's competitive stance, particularly in the AI sector, where it faces stiff competition. However, the company remains optimistic about its future growth, with plans to expand its AI and general compute workloads, as highlighted by its CFO at a recent technology conference. Reddit discussions also reflected a mix of optimism and skepticism, with some users expressing frustration over the stock's recent performance.