Why Advanced Micro Devices Stock Tanked on Tuesday
Yahoo Finance ·
Advanced Micro Devices ( AMD 6.97% ) might be the company behind some of the more dependable microchips on the market, but its stock was wobbly on the second trading day of the week. On reports that yet another artificial intelligence (AI) company aims to develop its own specialty processors for the technology, investors sold AMD stock, leaving it with a loss of almost 7%. Early Tuesday morning, Reuters reported that Chinese AI developer DeepSeek is planning its own AI chip. If the company is successful, at the very least it would gain independence from its current supplier, AMD, and peer/rival Nvidia . If the chip resonates with other AI businesses, though, it could directly threaten the AMDs and Nvidias of this world. Citing three unidentified "people familiar with the matter," the news agency added that DeepSeek's chip is being designed for inference. This is the stage where an AI model leverages its considerable training to produce responses to user queries. DeepSeek hasn't officially commented on the Reuters story, and neither AMD nor Nvidia has responded.
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