Why AMD Stock Dropped Today

Advanced microdevices (NASDAQ: AMD) shares lost ground Thursday following the company’s Advancing AI conference. The semiconductor specialist’s share price ended the day down 4%.

AMD’s Advancing AI conference offered new product reveals and promising sales figures, and the company’s stock pullback is likely a reflection of the “buy the rumor, sell the news” dynamic. In other words, the optimal catalysts from new products and partnerships had likely already been priced in — and investors took profits with the company’s conference call.

AMD actually had good news for investors at its AI conference

At today’s Advancing AI conference, AMD announced the release of its Ryzen AI Pro 300-series mobile processors. The new central processing unit (CPU) has been designed to deliver up to three times better performance for AI applications and improved integration with MicrosoftHis Copilot+ system.

AMD also showcased its EPYC and Instinct data center processors MI325x AI Accelerator for Graphics Processing Unit (GPU). The company said the EPYC 5th Gen 9965 is currently the best-performing processor for data center servers and also noted that its top-of-the-line Instinct accelerator beats it. NvidiaH200 HGX along some performance parameters.

AMD’s data center strategy appears to be on track

In addition to product news and updates from AMD, Super Micro Computer announced the release of news servers, GPU accelerators and storage servers featuring the company’s EPYC 9005 series processors and Instinct MI325X GPUs. Super Micro Computer has emerged as a leading provider of high-performance servers for AI applications, and new product wins with the company are likely to end up being a significant sales driver for AMD.

AMD is aiming to gain more market share in the data center processing market, and the company’s Advancing AI conference today broadly suggested that the chip specialist is on track with its strategic roadmap. Although there were no new shocking announcements at the conference, the pullback in stocks should not be taken as a deeper bearish indicator.

Don’t miss this second chance at a potentially lucrative opportunity

Have you ever felt like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issue a “Double” stock. recommendation for companies that I think are on the way. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

The story continues

• Amazon: if you invested $1,000 when we doubled in 2010, you would have $20,855!*

• Apple: if you invested $1,000 when we doubled in 2008, you would have $43,423!*

• Netflix: if you invested $1,000 when we doubled in 2004, you would have $392,297!*

Right now, we’re rolling out “Duplicate” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See the 3 “Duplicate” actions »

*The stock advisor returns as of October 7, 2024

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 Microsoft calls and short $405 January 2026 Microsoft calls. The Motley Fool has a disclosure policy.

Why AMD Stock Sank Today was originally published by The Motley Fool