Advanced Micro Devices Inc. (NASDAQ:AMD) stock fell Wednesday alongside a broader semiconductor pullback driven by hotter-than-expected Consumer Price Index data, market skepticism surrounding artificial intelligence infrastructure monetization and a reset in OpenAI’s annualized revenue metrics.
The Nasdaq is down 1.99% while the S&P 500 has shed 1.26%, and Technology is the weakest sector on the day — down 2.9%.
• Advanced Micro Devices shares are retreating from recent levels. Why is AMD stock dropping?
Inflation Accelerates Above Forecasts
The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index rose 3.7% year-over-year in September, exceeding the 3.6% forecast by economists. On a monthly basis, prices gained 0.6%. Core CPI, which excludes food and energy, increased 0.3% month-over-month and 2.6% annually, topping expectations of 0.2% and 2.5%. Gas prices jumped 9.1% on the month, driving more than half of the headline increase.
Following the inflation reading, the 2-year Treasury yield climbed 13 basis points to 4.93% and the 10-year yield gained 9 basis points to 5.31%.
Industry Leaders Highlight Capital Constraints
AI financing concerns added further pressure to chipmakers. Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan and Intel Corp. (NASDAQ:INTC) CEO Lip-Bu Tan addressed sector challenges Monday at the DBS Asia Future Forward Conference in Singapore.
“[What] I think might be the biggest constraint is capital,” Hock Tan said, as reported by CNBC. Lip-Bu Tan added, “If there’s any challenge in the front, it’s capital and the cost of capital, and then the other part is in the longer run, people want to see the ROI.”
OpenAI Adjusts Annualized Revenue Figures
Compounding sector headwinds, the Financial Times reported Thursday that OpenAI informed investors its annualized revenue reached approximately $50 billion at the end of September, down from previously reported $70 billion estimates due to updated calculation methodologies.
Technical Analysis
From a trend perspective, AMD is still in a bullish long-term structure: it’s trading 46.1% above the 200-day SMA ($390.95) and the 50-day SMA remains above the 200-day SMA, a classic "uptrend intact" signal. The near-term message is softer, though, with the stock trading 6.5% below its 20-day SMA ($611.11), suggesting the latest pullback is pressuring the short-term trend.
Momentum is best explained by RSI, which sits at 46.06 — neutral, but leaning toward "cooling" after the run into the October peak.
The chart also has a clear reference point overhead: the 52-week high area from October is close by, and failed retests of that zone can keep rallies choppy. Key levels traders are likely watching include:
- Key Resistance: $658.50 — Near the 52-week high zone where rebounds can stall
- Key Support: $498 — Nearby pivot area that sits close to the 50-day SMA ($534.75), making it a logical "line in the sand" if selling accelerates
AMD Stock Price Activity: AMD shares were down 5.43% at $572.62 at the time of publication on Wednesday, according to Benzinga Pro data.
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