AMD Stock Plummets Amid Economic Concerns and Tariff Threats

Advanced Micro Devices (AMD) shares tumbled 6% intraday as weak U.S. jobs data and impending semiconductor tariffs rattled investors. The chipmaker's decline outpaced broader market weakness following a disappointing nonfarm payrolls report showing just 22,000 new jobs versus 75,000 expected.

Trade tensions escalated as the TRUMP administration confirmed new tariffs on foreign-made semiconductors, directly impacting AMD's fabrication-dependent business model. Market analysts note the company's heavy reliance on offshore manufacturing leaves it particularly vulnerable to margin compression from trade barriers.

While maintaining CPU market share gains against rivals, AMD's long-term valuation hinges on AI-driven GPU demand—a sector where competitors continue dominating. The dual pressures of macroeconomic uncertainty and sector-specific headwinds create a challenging environment for the semiconductor stock.