AMD Stock Falls 3% as Rising Yields and Oil Prices Hit Chipmakers

TLDR

AMD stock dropped almost 3%in Monday premarket trading, trading around$613.64. The decrease came as increasing Treasury yields and greater oil rates weighed on tech stocks broadly.

Advanced Micro Devices, Inc., AMD

Intel fell even harder, down more than 6%, while AMD moved over 5% throughout the session. The Philadelphia Semiconductor Index dropped 3% as chip stocks bore the impact of the selloff.
Brent crude climbed up more than 3% to $108 a barrel. West Texas Intermediate got 3.5% to $95.64 after President Trump turned down ceasefire conditions proposed by Iran.
Treasury yields extended recently’s climb too. The 10-year yield traded above 5.2%, while the 30-year topped 5.5%, both sitting near multiyear highs.
Greater oil rates tend to stir inflation worries. That keeps pressure on rates of interest, and increasing yields strike development stocks particularly hard by increasing the discount rate used to future profits.
Why AMD Looked Stretched
AMD had actually added dramatically before Monday’s pullback. The stock trades 16.2% above its 20-day moving typical and 68.2% above its 200-day moving average.

Its relative strength index sits at 73.24, above the 70 limit that generally signifies overbought conditions. That left the stock susceptible to profit-taking as soon as wider belief turned.
The pullback follows an extreme rally driven by optimism around Meta’s Muse AI innovation. AMD and Intel have actually each acquired approximately 30% over the previous month on that story.
The concept is that more capable AI representatives doing independent jobs will require more calculating power. That might broaden the marketplace for server CPUs made by AMD, Intel and Arm-based chipmakers.
Meta has stated its own calculate requirements are “progressing to require more CPU” as its agentic AI push continues. Michael O’Rourke, primary market strategist at JonesTrading, stated the marketplace has actually checked out Muse as an increase for a currently tight CPU market.
That optimism assisted AMD cross a $1 trillion market cap for the very first time recently.
Experts Raise Price Targets
BofA Securities raised its AMD cost target to $720 from $620 on September 25 while keeping a Buy ranking. The company anticipates the server CPU market to grow from $61 billion in 2026 to $211 billion by 2030, with $180 billion of that connected to AI.
BofA likewise indicated the Anthropic-Akamai CPU facilities offer as more evidence that CPUs matter more as AI systems get more agentic. Piper Sandler started protection on September 10 with an Overweight ranking and a $600 target. Raymond James updated AMD to Strong Buy on August 25, raising its target to $641.
AMD brings a Buy agreement score with a typical cost target of $615.30. The stock trades at a price-to-earnings numerous near 161, a high premium.
On Benzinga’s Edge Rankings, AMD ratings 99.29 on Momentum, 95.62 on Quality and 95.6 on Growth. Its Value rating is simply 3.3.
AMD comprises 8.74% of the iShares Semiconductor ETF, 6.79% of the First Trust Nasdaq Semiconductor ETF and 6.52% of the Pacer Data and Digital Revolution ETF.
The rally likewise got a lift from Meta’s Connect occasion, where Meta revealed Charm, a portable gadget developed for direct Muse gain access to. Zuckerberg stated Muse will quickly reach Meta’s wise glasses lineup too, and Meta is broadening Muse through retail partners consisting of Walmart, Best Buy, Sephora, Wayfair, Dick’s Sporting Goods and Gap.