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Why AMD Stock Sank 6% Today
The duration of the global semiconductor shortage just keeps getting shorter — and with it, investor confidence in semiconductor stocks like Advanced Micro Devices (NASDAQ: AMD), which closed down 6.1% Tuesday. If you recall, market researcher International Data Corporation (IDC) predicted last week that the dearth of semiconductors, which has hamstrung markets for everything from PCs to automobiles over the past year, will begin easing later this year. Speaking at the Code Conference in Beverly Hills, California, reports CNBC, Su pointed to a number of new semiconductor manufacturing plants coming online over the next few months as evidence that, while supplies will remain “likely tight” through the first half of next year, the chip shortage may end sooner than some investors expect.
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