The GraniteShares 2x Long AMD Daily ETF is experiencing significant pressure due to a confluence of factors impacting its underlying asset, Advanced Micro Devices (AMD). A major catalyst is the recent downgrade by HSBC, which shifted AMD's rating from a "strong-buy" to a "moderate sell," citing concerns over its competitive position in the AI chip market. The downgrade was accompanied by a reduction in the price target from $200 to $110, reflecting apprehensions about AMD's delayed AI GPU roadmap and potential supply chain issues affecting its MI325 GPU. Additionally, the analyst highlighted limited growth prospects in AMD's client and data center segments, further exacerbating investor concerns.
Moreover, the broader semiconductor sector is facing headwinds from geopolitical developments. The Biden administration's plans to extend AI chip export curbs to China and Russia have added to the uncertainty, affecting major players like AMD and its peers. This move is part of a broader strategy to control the spread of advanced technologies, which has led to increased market volatility. The semiconductor index, represented by SOX, also saw a decline, reflecting the sector-wide impact of these regulatory measures.
The GraniteShares 2x Long AMD Daily ETF fell to $7.63, marking a 10.08% decrease from its previous close.