Why AMD Stock Is Sinking After Opening With Big Gains Today

Market Performance - Advanced Micro Devices (AMD) stock opened positively but is now down 1.9% amid a broader market decline, with the S&P 500 down 0.1% and the Nasdaq Composite down 0.3% [1][2] - Earlier in the session, AMD stock had increased by as much as 6.3% before the decline [1] Market Sentiment - Initial gains for AMD were driven by optimism regarding potential tariff negotiations by the Trump administration, but this bullish momentum has weakened as the day progressed [2][3] - The overall recovery momentum in the market is fading, leading investors to exit positions after the morning's valuation bounce [3] Analyst Downgrade - KeyBanc analyst John Vinh downgraded AMD's stock rating from overweight to sector weight, indicating expectations for performance in line with the sector average [4] - The downgrade is attributed to uncertainties surrounding AMD's artificial intelligence (AI) business in China and challenges in gaining additional market share, which may pressure margins in the semiconductor industry [4]