What's Going On With AMD Stock Friday?
Portfolio Pulse from Anusuya Lahiri
AMD's stock is trading lower due to Taiwan Semiconductor Manufacturing Company (TSMC) postponing the delivery of high-end chipmaking equipment. TSMC, a key AMD supplier, delayed production at its Arizona plant to 2025 due to recruitment difficulties and union opposition. This has triggered concerns over a supply crunch in the chipmaking sector. Meanwhile, Nvidia felt the competition as retailers Newegg and Amazon slashed prices of its GPUs as AMD launched its RX 7800 XT. There is also a looming threat from China's Huawei Technologies and SMIC amid efforts to build a domestic chip ecosystem.
September 15, 2023 | 3:45 pm
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NEGATIVE IMPACT
AMD's stock is trading lower due to TSMC's postponement of high-end chipmaking equipment delivery.
AMD relies on TSMC for its chipmaking equipment. The delay in delivery could impact AMD's production, leading to a drop in its stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Nvidia is facing competition as retailers Newegg and Amazon slashed prices of its GPUs.
The price cuts on Nvidia's GPUs by retailers could impact its sales and revenue, potentially leading to a drop in its stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
TSMC has postponed the delivery of high-end chipmaking equipment, impacting its clients like AMD.
TSMC's delay in delivery could impact its reputation and relationships with clients, potentially leading to a drop in its stock.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Amazon has slashed prices of Nvidia's GPUs.
While the price cuts could increase sales, it could also decrease profit margins. The impact on Amazon's stock is uncertain.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Newegg has slashed prices of Nvidia's GPUs.
While the price cuts could increase sales, it could also decrease profit margins. The impact on Newegg's stock is uncertain.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50