AMD Slashes 1,000 Jobs To Boost AI Chip Focus
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AMD has announced plans to reduce its workforce by approximately 4%, or around 1,000 employees.
This strategic move is aimed at accelerating the company’s focus on AI chip development, particularly to challenge Nvidia’s dominant position in the market.
Despite developing powerful AI accelerators like the MI300X, AMD currently holds a significantly smaller market share compared to Nvidia’s 80%. In the past six months, AMD’s stock price has declined by 9%.
The stock experienced a 3.01% decline on Wednesday, November 13th, closing at $139.30. This marks the fourth consecutive day of downward movement for the stock.
Throughout the trading day, AMD’s stock price fluctuated within a range of 3.90%, hitting a low of $139.07 and a high of $144.49.
Over the past 10 trading days, the stock has declined on seven occasions, resulting in a cumulative decrease of 6.26%.
While trading volume increased by 26,000 shares on Wednesday, despite the falling price, this could be an early warning sign of potential increased risk in the near future. A total of 33 million shares were traded, amounting to approximately $4.59 billion.
In the short term, AMD’s stock is currently trading near the lower boundary of a broad, weak uptrend. This positioning typically presents a favourable entry point for long-term investors.
However, a breakdown below $134.35 support could indicate a potential slowdown in the upward momentum and may signal a potential trend reversal.
Data: eToro, FactSet, Morningstar, S&P Capital IQ, ProRealTime, MarketScreener