AMD Stock Crashed 13% Last Week. Is It Time to Buy the Dip?

Advanced Micro Devices (NASDAQ: AMD) plunged 13% last week, falling from $608.10 on October 9 to $528.75 on October 16, as investors dumped semiconductor stocks amid growing concerns about the AI boom.

The bullish argument is that AMD's underlying industry remains strong.

TSMC and ASML's earnings suggest that AI investment continues, while major technology companies are still expanding their data-center infrastructure.

If interest rates stabilize or decline, investors could return to semiconductor stocks, potentially supporting a recovery.

However, high borrowing costs could eventually slow AI infrastructure spending, while elevated valuations leave AMD vulnerable to further selling.

The bottom line: AMD's 13% weekly decline may offer an opportunity for long-term investors who believe the AI boom is far from over.

For now, the evidence points more toward pressure from interest rates and valuations than a collapse in AI demand.

Disclosure: The author does not own shares of AMD but holds positions in other stocks with higher beta and potentially greater volatility than AMD. These holdings may be affected by similar market conditions. This article reflects the author's opinion and is not financial advice.