Advanced Micro Devices, Inc. (AMD) saw its stock decline by 1.32% to close at $125.02 on December 17, 2024, amid heightened trading volume of 42,825,896 shares, significantly above its average. The stock opened at $124.47, reached a high of $127.08, and dipped to a low of $123.15 during the trading session. The downward pressure on AMD's stock was primarily driven by bearish sentiment from significant investors, as evidenced by options trading data showing 62% of trades being puts, indicating a lack of confidence in the stock's short-term performance.
Contributing to the negative sentiment was a report from Wolfe Research projecting that AMD's AI revenue for 2025 could fall short of expectations by $3 billion, raising concerns about the company's growth prospects in the competitive AI sector. Additionally, Intel's recent announcement of its new Battlemage graphics cards, which have received positive reviews, added competitive pressure on AMD, particularly in the midrange graphics card segment. Geopolitical tensions, with potential new tariffs on Chinese goods, also weighed on the semiconductor sector, further impacting AMD's stock.