Why did AMD plummet today?

The stock price of AMD has experienced a decrease of -4.47% today. The decline in AMD's stock price can be attributed to a combination of factors: 1. **Impact of U.S. Export Controls**: The recent U.S. export controls on data center chips have had a significant impact on AMD's performance. The company was forced to take an $800 million inventory charge due to restrictions on its MI308 chip shipments to China. This charge has pressured the company's profitability and caused its adjusted earnings per share to miss analyst expectations. 2. **Market Reaction to Earnings Report**: Despite beating on revenue with a record $7.7 billion, AMD's second-quarter earnings report overshadowed by a large inventory charge related to U.S. export controls on its data center chips. The company's gross margin was squeezed significantly from the previous year, which negatively impacted the stock price. 3. **Deutsche Bank's Price Target Increase**: Although Deutsche Bank raised its price target on AMD to $150 from $130, the stock was trading at $174.31, near its 52-week high of $182.50. This indicates that the stock may be overvalued at current levels, which could contribute to a decline in the stock price. In conclusion, AMD's stock price decline today can be attributed to a combination of factors including the impact of U.S. export controls, market reaction to earnings report, and Deutsche Bank's price target increase. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |AMD|AMD.O|Advanced Micro Devices|20250819|-4.3915635290110115|185|