Advanced Micro Devices' stock fell sharply on Tuesday, November 25th, amid investor concern over increased competition in the artificial intelligence chip market. The sell-off followed reports that Meta Platforms is considering a multi-billion dollar investment in Google's Tensor Processing Units (TPUs) for its AI infrastructure, a move that could disrupt the GPU market currently dominated by Nvidia and where AMD is a key competitor. The potential entry of Google as a major chip supplier to a key customer like Meta has created uncertainty around AMD's AI market share growth. Analysts expressed concern that this development is a negative for AMD's narrative of being the primary alternative to Nvidia. The stock drop marked the beginning of what is shaping up to be AMD's worst month since September 2022, highlighting investor anxiety despite the company's previously optimistic projections.
AMD Stock Tumbles on Fears of Intensified AI Chip Competition
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