Advanced Micro Devices (AMD) shares moved higher in morning trade, up roughly 0.5% to $518.47 after an opening print of $504.01, marking a partial recovery from a pronounced selloff the prior day. That earlier drop followed a Reuters report alleging that DeepSeek, a Chinese AI startup, is developing its own inference-focused AI processor - a development market participants increasingly view as an early-stage competitive threat rather than an immediate revenue loss for AMD.
Analyst support is a key component of the rebound. Goldman Sachs analyst James Schneider raised his price target to $640 on Monday, July 6, and that call continues to be cited by market participants as justification to view recent weakness as a buying window. A separate bullish investor note published today reiterated the view that additional upside remains for the stock, sustaining the narrative of conviction among some institutional investors.
Competitive timing is also playing into sentiment. Reports that Nvidia’s rack-scale Kyber NVL144 system may be delayed to 2028 because of manufacturing complexity have the potential to extend AMD’s near-term opportunity when hyperscalers evaluate rack-level AI infrastructure. Market observers framed the reported postponement as a factor that could widen AMD’s tactical runway with major cloud and hyperscale customers.
That said, not all flows are supportive. ARK Invest continued to reduce its stake in AMD, selling shares through its ARKK ETF on Tuesday. Those sales provide a modest headwind to the stock’s recovery, though they did not fully offset the positive signals from analysts and the competitive timeline discussed above.
The wider market backdrop remains unfavorable. The S&P 500 was down about 0.5%, the Nasdaq off 0.3%, and the Dow Jones declined roughly 1.0% as rising U.S.-Iran tensions pushed oil prices higher and reawakened inflation concerns. Investors are also awaiting the release of the Federal Open Market Committee minutes from the Fed’s June meeting, which could offer clues about the central bank’s near-term posture.
The Fed left interest rates unchanged at the June meeting, but market participants are watching the minutes closely for any hawkish signals under new Fed Chair Kevin Warsh. The June nonfarm payrolls report showed just 57,000 jobs added, well below expectations, and that weak print is part of the context in which traders are parsing the minutes.
Against this cautious macro environment, AMD’s modest advance stands out as largely stock-specific. Traders point to an oversold technical setup after the previous day’s selloff, sustained Wall Street conviction evident in the Goldman Sachs price-target raise, and increasing skepticism that DeepSeek’s nascent chip program represents an immediate revenue threat. Together, those elements are allowing AMD to consolidate and inch higher even as the broader semiconductor sector and major indices trade under pressure.
Summary
- AMD rose to $518.47 in morning trading from an open of $504.01, recovering from a steep decline tied to a Reuters report on DeepSeek’s chip plans.
- Goldman Sachs boosted its price target to $640 on July 6, a call that continues to shape investor sentiment.
- Reported delays to Nvidia’s Kyber NVL144 to 2028 could extend AMD’s near-term opportunity with hyperscalers; ARK Invest’s trimming via ARKK represents a countervailing flow.
Market context
- Major indices are lower amid heightened U.S.-Iran tensions, rising oil prices, inflation concerns, and anticipation of the Fed minutes from the June meeting.
- The Fed held rates steady at the June meeting; minutes are being scanned for hawkish signals under Fed Chair Kevin Warsh. June nonfarm payrolls rose by 57,000, below expectations.