Advanced Micro Devices, Inc. (NASDAQ:AMD) stock moved higher Tuesday as investors reassessed concerns that a greater focus on AI safety could slow infrastructure and capital spending tied to AI development.
The company’s shares rose more than 2% on Tuesday, even as S&P 500 futures declined 0.2%.
The move follows a recent risk-off stretch across AI-linked stocks as investors weighed whether slower AI development could reduce demand for infrastructure spending.
AI Safety Debate Pressured Chip Stocks
During the earlier sell-off, AMD fell nearly 6% in premarket trading, while Nasdaq futures dropped 1.51% and S&P 500 futures declined 0.65%.
The pressure followed renewed debate over AI safety and whether efforts to slow AI development could also reduce the pace of capital spending behind AI buildouts.
AMD Is Not Alone In The Decline
Intel Corp. (NASDAQ:INTC), NVIDIA Corp. (NASDAQ:NVDA) and Broadcom Inc. (NASDAQ:AVGO) each fell between 3% and 6% during the same session, reflecting broader weakness across AI-linked semiconductor stocks.
The broader AI-chip debate also extends to NVIDIA, where investors are weighing infrastructure demand against heavy exposure to the AI trade.
Cvetanovski Flags NVIDIA Concentration Risk
Pella Funds CIO Jordan Cvetanovski told CNBC that NVIDIA does not appear particularly expensive on a one- to three-year view, but he sees greater risk from heavy investor concentration across AI and semiconductor stocks.
He warned that weaker data-center demand or a shift in the AI narrative could trigger a rapid unwind in chip and hardware stocks, questioning "how many, and how much is enough" for data centers.
Cvetanovski said a weaker AI trade could push some investor money from chips and hardware toward software companies such as Microsoft Corp. (NASDAQ:MSFT), Intuit Inc. (NASDAQ:INTU) and SAP SE (NYSE:SAP).
Price Action
AMD Stock Price Activity: Advanced Micro Devices shares were up 2.36% to $505.06 at the time of publication on Tuesday, according to Benzinga Pro data.
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