Bond.az -- Shares of Advanced Micro Devices fell 5.7% in morning trading to $397.20, pulling back sharply from a session high of $428.75 as investors locked in gains after a multi-week rally that hit an all-time high of $469.22 on May 11.
On Monday, CEO Lisa Su met with Chinese Vice Premier He Lifeng in Beijing. She pledged to expand AMD's operations in China. While this signals AMD's intent to stay in a key market, it also faces a strategic dilemma: retreat from China or navigate an unpredictable regulatory environment.
Profit-takers are active ahead of Nvidia's May 20 report, rotating across AMD, Intel, and Nvidia. Evercore ISI raised its price target to $579, and Citigroup to $460, but selling continued.
A top AI expert warned that Micron, AMD, and Intel stocks could face a sharp reversal. AMD insiders made 84 open-market sales in six months, with CEO Lisa Su selling about 460,000 shares for $126 million.
The NASDAQ fell 1.2% and S&P 500 0.7%. HSBC noted AMD's valuation expanded from 19x to 33x estimated 2027 earnings, leaving little room for error.
Today's decline reflects a confluence of factors: geopolitical ambiguity, heavy insider selling, technical exhaustion, and sector repositioning ahead of Nvidia's earnings.
