AMD Stock Slides on Analyst Downgrade and AI Sector Concerns

Advanced Micro Devices (AMD) shares fell sharply following a Seaport Research downgrade from buy to neutral, citing weakening demand in its artificial intelligence chip division. The stock dropped 6.3% intraday amid broader semiconductor sector pressures.

Macroeconomic headwinds compounded the selloff. A disappointing August jobs report signaled slowing growth, while renewed threats of U.S. semiconductor tariffs introduced additional uncertainty. Though AMD operates as a U.S.-based fabless company, its reliance on overseas foundries leaves it exposed to potential trade policy shifts.

The decline mirrored weakness across chipmakers, including Nvidia. Sector sentiment deteriorated further following reports that OpenAI may develop proprietary AI chips, potentially disrupting existing supplier relationships. Market participants now question whether the AI infrastructure boom can sustain its meteoric growth trajectory.