Shares of Advanced Micro Devices climbed approximately 2.2% to $212.96 at the market open on Monday, outperforming a relatively flat Nasdaq-100 index. The move signaled a stabilization in the chip sector following a volatile week, with traders awaiting critical U.S. economic indicators.
Semiconductor Performance Diverges
While AMD led the early gains, other major chipmakers showed mixed results. Nvidia rose roughly 3%, and Broadcom added about 2%. In contrast, Intel declined nearly 3%. The broader semiconductor segment posted slight advances, even as the technology-heavy Nasdaq-100 dipped marginally.
The focus remains on AMD's competitive positioning in the artificial intelligence accelerator market, where it is challenging Nvidia's dominance. Recent financial results underscore this narrative: AMD reported record fourth-quarter revenue of $10.3 billion but projected first-quarter sales to decline sequentially to approximately $9.8 billion, plus or minus $300 million.
Macroeconomic Headwinds Loom
Investor attention is shifting toward macroeconomic risks. Upcoming releases of the January U.S. jobs report on Wednesday, February 11, and the Consumer Price Index on Friday, February 13, have the potential to significantly alter interest rate expectations. Higher-than-expected readings could pressure technology valuations by pushing bond yields higher, which discounts the value of future earnings.
"The market's expectations for AI hardware companies have become exceptionally high," noted Bob O'Donnell of TECHnalysis Research. AMD CEO Lisa Su expressed confidence in the company's supply chain for its new AI servers, stating she does not anticipate "supply-limited" issues with customers like OpenAI. However, risks persist, including a potential slowdown in AI hardware demand, reliance on a few large clients, and ongoing export restrictions related to China.
