Advanced Micro Devices Inc. (NASDAQ:AMD) stock fell nearly 6% in Monday’s premarket session as a selloff in AI-linked stocks deepened.
Peers Intel Corp. (NASDAQ:INTC), NVIDIA Corp.
(NASDAQ:NVDA) and Broadcom Inc. The Financial Times reported that calls to slow AI development over safety concerns could eventually translate into lower infrastructure and capital spending.
The debate intensified after Anthropic CEO Dario Amodei called for leading AI companies to work together on managing AI development and safety. Barclays strategist Emmanuel Cau said a greater focus on AI safety could raise questions about the pace of capital spending.
AI Spending Concerns Pressure AMDThe broader risk-off mood added pressure on AMD after a strong run. That rally has left AMD well above its longer-term trend.
As a result, weaker market sentiment could make the stock more sensitive to profit-taking. 03.
However, the 20-day SMA remains below the 50-day SMA. That signals continued near-term weakness.
Meanwhile, the MACD remains above its signal line with a positive histogram. Traders will likely watch $491 as an immediate pivot.
A sustained move above that level could help stabilize the stock. Piper Sandler initiated coverage with an Overweight rating and $600 price forecast on Sept.
10. Raymond James upgraded AMD to Strong Buy and raised its forecast to $641 on Aug.
25. BMO Capital Markets initiated coverage with an Outperform rating and $550 forecast on Aug.
58. The readings point to a high-growth stock with strong momentum and business quality but a demanding valuation.
Top ETF ExposureAMD also carries significant weight in several exchange-traded funds.
