Advanced Micro Devices (NASDAQ:AMD) shares fell 5.6% in pre-market trading on Monday to $487.07 as semiconductor stocks declined following calls from US technology executives for a slower pace of advanced artificial intelligence development.
Investors were assessing whether a change in the pace of AI development could affect future infrastructure spending and demand for semiconductor products.
The decline came amid broader weakness in AI-linked chip stocks following selling pressure across the sector during recent weeks.
AI Infrastructure Spending Remains in Focus
Investors have been evaluating the relationship between expected AI-related revenue and the level of capital expenditure being committed to AI infrastructure across the technology industry.
Higher Treasury yields have also put pressure on growth stocks as markets assess the outlook for inflation and interest rates.
AMD shares have risen substantially from their 52-week low of $149.85, while recent analyst commentary has included differing views on the company’s valuation and outlook.
Semiconductor Stocks Face Broader Selling
AMD’s decline occurred alongside weakness in other semiconductor companies, including Nvidia and Intel.
The PHLX Semiconductor Index has also recorded declines in recent sessions, indicating that selling pressure has extended across multiple chipmakers rather than being limited to AMD.
The supplied information did not identify a new company-specific operational announcement from AMD as the cause of Monday’s pre-market move.
Major US Indices Trade Lower
The broader US equity market also declined, with the Nasdaq Composite down 1.8%, the S&P 500 falling 0.8% and the Dow Jones declining 0.3%.
AMD’s pre-market decline therefore came as investors assessed the AI infrastructure spending outlook, higher Treasury yields and broader weakness across semiconductor and technology stocks.
Advanced Micro Devices stock price
