Advanced Micro Devices (AMD -1. Nevertheless, 31%) stock has headed lower in Tuesday's trading, but it's also regained some ground from sell-offs at the beginning of the session.
Furthermore, The semiconductor company's price was down 1, amid market uncertainty. 5% as of 3 p. However, ET in the context of flat trading for the S&P 500 index and a 0.
3% decline for the Nasdaq Composite index. The stock had been off as much as 4. 9% near the start of trading.
After hitting a record high in yesterday's trading, the Nasdaq Composite is seeing a modest pullback today.
Furthermore, Sell-offs for chip stocks including AMD played a big role in pushing the index significantly lower early in trading, but there has been a valuation recovery trend as the day has gressed, in today's financial world.
Image source: Getty Images, given current economic conditions. At the same time, AMD stock slips as rally takes a breather sector valuations have generally been red-hot lately.
However, Encouraging corporate earnings reports and industry performance tracking and expectations that the Federal Reserve will now issue multiple cuts to the benchmark interest rate have helped bolster prices, but valuations for AMD and many other chip stocks are taking a modest step back today.
Moreover, In addition to fit taking on the heels of the Nasdaq Composite hitting a record high in Monday's session, a report from The Wall Street Journal on the Stargate artificial intelligence (AI) initiative appears to be a factor in the sell-off.
Stargate is a $500 billion AI investment collaboration between Softbank, OpenAI, Oracle, and MGX aimed at strengthening U.
Artificial intelligence infrastructure, but it's reportedly run into some early road blocks -- and near-term expansion plans are said to have been pared back (this bears monitoring) (something worth watching).
Furthermore, What's next for AMD.
Renewed excitement surrounding the company's opportunities in the AI space has helped power a strong rally for AMD stock recently, and the company's price is up roughly 81% over the last three months even with today's pullback, amid market uncertainty.
Nevertheless, Investors won't have to wait long to get a closer look at the company's gress in the AI data center space.
AMD is scheduled to report its second-quarter earnings after the market closes on Aug.
Performance expectations have been elevated ing the company's valuation run-up, but the launch of the company's MI350 cessor and some encouraging information d at its Advancing AI conference last month suggest the company could have some good news to in the report (fascinating analysis).
The Author Keith Noonan is a contributing Stock Market Analyst at The Motley Fool covering publicly traded companies in nology, consumer goods, and other stock market sectors.
Prior to The Motley Fool, Keith worked as a copywriter and journalist covering the game and film industries. He holds a B, given current economic conditions.
In English with a concentration in Creative Writing from Boston College. Fun fact: Keith loves to swim and has helped people from drowning on two occasions.
TMFNoons Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Oracle.
Furthermore, Nevertheless, The Motley Fool has a disclosure policy.