Shares of processor manufacturer Advanced Micro Devices Inc. (NASDAQ: AMD) fell by 2.8% during the afternoon session following a general downturn in the semiconductor industry. The sell-off was triggered by investor concerns regarding the future of artificial intelligence spending and rising geopolitical tensions between the U.S. and China.

The company’s recent share price of $326.32 is near its 52-week high of $347.81, reached earlier in April 2026. Despite the current decline, AMD shares have risen by 46% since the beginning of the year, and long-term investors who bought the stock five years ago have seen their capital increase nearly fourfold.

The pessimism was sparked by news that OpenAI had missed its internal revenue and user growth targets. This raised fears that demand for data center chips could decline if key AI market players reduce their infrastructure budgets. The situation was further compounded by general risks of global supply chain disruptions.

AMD has navigated a period of high volatility while maintaining the confidence of major analysts. Previously, D.A. Davidson upgraded the stock’s rating to “Buy” with a price target of $375, while Stifel raised its target to $320. Investors continue to evaluate the sector’s resilience amid positive reports from competitors like Intel, which earlier signaled stable demand in the AI segment.