AMD Shares Fall Sharply as AI Infrastructure Spending Concerns Weigh on Chip Stocks

NEW YORK — Shares of Advanced Micro Devices fell sharply Thursday, extending a broader sell-off in semiconductor stocks amid investor questions about the sustainability of artificial intelligence infrastructure spending.

AMD traded near $540 in morning trading, down more than 5 percent, after closing Wednesday at $570.82, a drop of 5.7 percent. The decline was steeper than the broader market, with the Nasdaq Composite also lower. No company-specific earnings announcement or product update drove the move.

Analysts and market reports linked the pressure to two main factors: hotter-than-expected September inflation data and rising concerns about debt levels at AI cloud providers. The Consumer Price Index rose 3.7 percent year-over-year in September, above the 3.6 percent forecast, increasing expectations that the Federal Reserve may keep interest rates higher for longer. Higher rates raise the cost of financing large data-center projects.

Separately, a sell-off in bonds of CoreWeave, a cloud company that has borrowed heavily to purchase chips, highlighted risks around AI-related capital expenditure. CoreWeave's total debt obligations have drawn attention, and elevated borrowing costs have prompted questions about how much technology companies can continue to spend on new hardware without straining cash flow.

Barron's and other outlets reported that the CoreWeave bond weakness revived doubts about ongoing AI chip demand, pulling down AMD along with peers including Nvidia and Micron. Investor's Business Daily grouped AMD with other AI-exposed names that declined in the session.

AMD has benefited from strong demand for its data-center processors and accelerators this year, but the stock has also risen substantially, leaving it sensitive to shifts in growth expectations. Wall Street analysts generally maintain positive long-term ratings, citing the company's position in AI servers, though near-term volatility has increased.

The company is scheduled to report fiscal third-quarter results on Nov. 3. AMD did not immediately comment on the stock movement. The broader technology sector remains under pressure as investors reassess the pace and financing of AI infrastructure expansion.