AMD Plunges 6.16% Amid Intel-TSMC Partnership Concerns

On April 7, 2025, Advanced Micro Devices, Inc. (AMD) experienced a significant drop of 6.16% in pre-market trading, reflecting investor concerns and market dynamics.

AMD's recent performance has been influenced by several key developments. The company's focus on high-performance computing, graphics, and visualization technologies has positioned it well in the market. However, the announcement of a strategic partnership between Intel and TSMC, involving the joint operation of Intel's U.S. fabrication facilities, has raised concerns about AMD's competitive landscape. This collaboration aims to enhance Intel's competitiveness in the AI chip sector and bolster U.S. semiconductor production, potentially impacting AMD's market share.

Additionally, AMD's AI growth has been notable, with record data center revenue and the introduction of new products like the MI350X GPU. These advancements underscore AMD's role in the AI sector, but the market may be underestimating the full extent of AMD's potential in this area. The company's strategic partnerships and product innovations are expected to drive future growth, despite current market volatility.