AMD's 5.44% Plunge Drives $10.86 Billion Surge Fifth in Market Activity as SoftBank Backs Intel Rival

On August 19, 2025, Advanced Micro Devices (AMD) closed with a 5.44% decline, trading volume surged to $10.86 billion—a 71.69% increase from the prior day—ranking fifth in market activity. The drop followed SoftBank’s $2 billion investment in Intel, overshadowing AMD as a key institutional backer. The move solidified SoftBank’s 2% stake in Intel, pushing the rival chipmaker’s shares up nearly 7% post-market hours.

Investor sentiment shifted as AMD faced a “shunned fiancé” effect, with traders exiting positions amid perceptions of missed opportunities. While Intel’s recent underperformance made it a more “appropriate recipient” of capital, AMD’s competitive position remains largely unaffected. Analysts suggest the selloff may create a short-term buying opportunity, though broader market dynamics, including U.S. manufacturing policy and trade tensions, continue to influence semiconductor sector volatility.

AMD’s stock has drawn mixed institutional activity, with some firms trimming holdings while others added to positions. Recent news highlighted heightened retail interest and strategic focus on AI and data center growth. However, macroeconomic uncertainties and sector-wide profit-taking—driven by anticipation of Federal Reserve policy updates—have amplified short-term price swings.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered a 1.98% average daily return, with a total return of 7.61% over 365 days. The Sharpe ratio of 0.94 indicates strong risk-adjusted performance, though the maximum drawdown of -29.16% underscores vulnerability during market downturns.