What's Going On With AMD Shares
Portfolio Pulse from Henry Khederian
Advanced Micro Devices, Inc. (AMD) shares fell by 2.0% amid overall market weakness due to concerns about future rate hikes and lower-than-expected initial jobless claims data. AMD's profitability and valuation could be affected by rising interest rates as it relies on borrowing for research and development and capital investments. Higher interest rates could also reduce consumer spending on technology products, negatively impacting AMD's sales and earnings.

September 26, 2023 | 7:53 pm
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AMD's shares fell due to concerns about future rate hikes. The company's profitability could be affected as it relies on borrowing for various purposes. Higher interest rates could also reduce consumer spending on technology products, impacting AMD's sales and earnings.
AMD's shares fell due to overall market weakness and concerns about future rate hikes. As the company relies on borrowing for research and development and capital investments, higher interest rates would increase its borrowing costs, potentially reducing profitability. Additionally, higher interest rates could make consumer borrowing more expensive, potentially reducing consumer spending on technology products, which would negatively impact AMD's sales and earnings.
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