While electronics are showing signs of a slowdown, the auto market has been quickly recovering, and more and more large companies such as Amazon, continue to invest in backend infrastructure in anticipation of long-term demand, although the pace of investment has slowed down in recent times. Prices also remain higher than in the past few years, although they have come down in recent times, even if only slightly, and the high prices are leading to generous margins for chip makers Some of that is due to demand for electronics, and demand has slowed down for them when compared to previous years, but the supply of semiconductors remains a problem with demand from autos and network-based demand keeping supply in check. AMD isn't the only semiconductor company facing headwinds, other competitors such as NVIDIA (NASDAQ: NVDA) have also witnessed their stock retreat.ĪMD has been continuing to perform well, and with the Zen4 architecture, and Xilinx chips, and when combined with the demand for the older chips, the stock may be oversold. Analysts are currently torn between whether there will be a chip shortage, or a glut going into 2023, and the mixed news is clearly leading to a negative outlook.
While the fall in price is currently primarily segregated to the secondary market, the price decline is now starting to affect the primary sales as well. In addition to the potential glut, that is expected to come in 2023, AMD is now witnessing the price fall for some of its chips.
AMD (NASDAQ: AMD) stock has declined for the past year, on fears that the semiconductor market is heading for a glut, mainly as fears of a global slowdown weigh on sentiment, after this years of shortages.
0 kommentar(er)
