AMD's $9.8B Volume Ranks Fifth as AI Profitability Doubts and Macro Worries Weigh on Stock

On August 20, 2025, Advanced Micro Devices (AMD) recorded a trading volume of $9.80 billion, ranking fifth in market activity. The stock closed down 0.81% amid sector-wide pressures. Recent research from MIT highlighted that 95% of businesses have not achieved profitability from generative AI investments, contributing to selling pressure for AI-related equities. This development, coupled with broader macroeconomic concerns, weighed on AMD despite its 40% rally over the preceding three months.

Analysts noted that inflationary trends and uncertainty around Federal Reserve rate cuts added to the stock's challenges. A hotter-than-expected July Producer Price Index report and commentary from retailers like Target and Home Depot on tariff-driven inflation raised concerns about the Fed’s ability to deliver aggressive rate cuts. These factors intensified investor caution in the AI chip sector, where AMD has been a key beneficiary of growth expectations.

Additional downward momentum emerged from leaks surrounding AMD’s upcoming Zen 7 processors, sparking concerns about execution risks and potential roadmap delays. Competitive dynamics also intensified as rivals such as Intel and Nvidia announced strategic initiatives. Institutional activity showed mixed signals, with some firms increasing stakes in AMD while others trimmed positions, reflecting divergent views on valuation and growth potential.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 yielded a 0.98% average 1-day return. Over 365 days, the total return reached 31.52%, indicating short-term momentum capture but also underscoring market volatility and timing risks inherent in such an approach.