AMD Stock Drops 5.5% as SoftBank Chooses Intel for $2 Billion Investment

Advanced Micro Devices (AMD) shares fell sharply Tuesday, underperforming the broader tech sector after SoftBank's surprise $2 billion investment in rival Intel. The deal, priced at $23 per share, immediately boosted Intel's stock by nearly 7% while leaving AMD investors scrambling.

SoftBank's strategic MOVE positions it as Intel's fifth-largest shareholder, controlling approximately 2% of the chipmaker. The transaction highlights renewed institutional confidence in U.S. semiconductor manufacturers amid ongoing trade policy shifts.

Market reaction appeared disproportionate to AMD's fundamentals—a classic case of sector rotation rather than company-specific weakness. Semiconductor stocks remain bellwethers for both technological innovation and geopolitical manufacturing priorities.