Advanced Micro Devices shares fell 18% in July as a sectorwide semiconductor sell-off erased a collective $1 trillion in market capitalization from the world's largest chip companies. Investors grew concerned that technology firms are overspending on artificial intelligence infrastructure, with projected capital expenditures reaching $750 billion this year, and that returns may disappoint. AMD's own research and development costs surged 142% to $1.2 billion in the first half of the year. Additional pressure came from a report that China-based AI developer DeepSeek is designing its own AI processor, intensifying competitive fears. The stock later declined further after AMD reported second-quarter earnings of $1.66 per share on revenue of $11.55 billion, beating estimates but failing to meet elevated investor expectations.
Advanced Micro Devices Inc