Advanced Micro Devices shares fell around 2% on Monday, diverging from a broader market rebound.
The decline came even as major US indices moved higher.
The Dow Jones Industrial Average rose 349 points, or 0.8%, while the S&P 500 gained 0.4% and the Nasdaq Composite edged up 0.1%.
Investor sentiment improved after comments from Federal Reserve Chair Jerome Powell, who said inflation expectations remain “well anchored beyond the short term.”
He added that while the central bank could “eventually maybe face the question of what to do here,” it is “not really facing it yet, because we don’t know what the economic effects will be.”
The yield on the 10-year Treasury fell following those remarks, last down 11 basis points at 4.33%.
Nvidia stock also volatile
Nvidia shares were also volatile. The stock was down 0.5% to $166.09 in early trading and is lower by about 10% for the year.
The movement comes despite continued signs of strong demand for AI infrastructure.
Mistral AI said it had raised $830 million in its first debt-financing round.
The company plans to build a data centre near Paris equipped with 13,800 Nvidia GB300 GPUs.
While financial details were not disclosed, estimates indicate the scale of spending. HSBC said a GB300 NVL72 rack containing 72 GPUs costs about $3 million.
Based on that, the deployment could translate into roughly $575 million worth of Nvidia hardware.
The announcement adds to a broader trend of rising AI infrastructure investment, even as market sentiment remains cautious.
A positive development for one of AMD’s biggest rivals can be seen as one of things pressuring the stock today.
Oil prices rise as geopolitical signals shift
Markets were also influenced by geopolitical developments.
US President Donald Trump signalled that an end to the war with Iran could be approaching.
At the same time, oil prices moved higher. Brent crude traded above $112 per barrel, while West Texas Intermediate crude rose 3% to above $103 per barrel.
Despite higher energy prices, Powell said the Federal Reserve does not yet see a need for immediate policy action, reinforcing expectations of a measured approach to interest rates.
Wall Street remains positive on AMD
Despite the day’s decline, AMD has continued to draw support from analysts.
Aletheia Capital analyst Stefan Chang reiterated a Buy rating on the stock and maintained a $330 price target, implying an over 60% upside from current levels.
Chang said the emergence of “agentic AI” could benefit AMD.
He noted that such systems are expected to rely more heavily on CPUs for certain tasks.
As a leading player in server CPUs, AMD is well-positioned to capture that demand.
The outlook suggests that while near-term stock movements remain tied to broader market and macro factors, long-term growth drivers linked to AI infrastructure remain intact for both AMD and Nvidia.
He added that AMD is evolving beyond a secondary player in AI chips.
While it continues to gain share in GPUs, it is increasingly becoming a broader AI compute provider.
Chang identified two primary growth engines. The first is the server CPU business, which he expects to expand rapidly over the coming years.
The second is the data centre GPU segment, led by the company’s MI series chips.
He projects strong growth across both segments. Server CPU revenue is expected to rise steadily through 2028.
Data centre revenue, meanwhile, could increase from about $17 billion in 2025 to between $58 billion and $77 billion by 2027–2028.
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