Although shares of Advanced Micro Devices (NASDAQ: AMD) reached a new all-time high (ATH) on March 8 this year following the launch of AMD’s new artificial intelligence (AI) microchip, the Advanced Micro Devices stock has plunged almost 30% since that time.
As it happens, AMD shares hit their record high five weeks ago, but they have failed to sustain the bullish momentum sparked by the launch of MI300X, and have continued to decline ever since, according to the observations by markets analyst Barchart shared in an X post on April 16.
AMD stock price analysis
Indeed, on December 9, 2023, just one day after Advanced Micro Devices debuted its newest microchip, which AMD CEO Lisa Su has referred to as “the most advanced AI accelerator in the industry,” the AMD stock closed nearly 10% higher, pushing it toward a new ATH of $227.30 by March 8, 2024.
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However, AMD stock is currently changing hands at the price of $161.34, not just plunging 29.02% since its record high but also recording a decline of 0.74% over the last day, decreasing its value by 5.30% across the past week, as well as losing 15.24% in the last month, as per data on April 16.
Why is AMD stock dropping?
So, why is AMD stock dropping? Notably, one of the reasons could have something to do with a Wall Street Journal report that China is looking to replace American-made chips with domestic alternatives, which could significantly affect semiconductor giants like Advanced Micro Devices Inc.
All things considered, the above reason could be strong enough to offset the positive news around AMD shares but the situation in the stock market can sometimes change on a whim, so it is important to carry out one’s own research before investing a significant amount of money in any asset.
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