Advanced Micro Devices, Inc. (AMD) is experiencing a decline in its stock price pre-market on December 17, 2024, following a report from Wolfe Research. The report indicates that AMD's AI revenue for 2025 is projected to be $3 billion below expectations. This news has likely raised concerns among investors about the company's growth prospects in the competitive AI sector, which is a significant area of focus for AMD and its peers.
Additionally, the semiconductor industry is facing potential challenges due to geopolitical tensions. Reports suggest that new tariffs on Chinese goods could be imposed, which might lead to retaliatory measures from China. Although AMD has relatively low exposure to China compared to some other semiconductor companies, the broader market sentiment around these geopolitical issues could be contributing to the stock's downward movement.
AMD's stock is currently priced at $124.15, down 2.01% from the previous close of $126.69. The stock has seen a high of $127.76 and a low of $123.12 in pre-market trading.