Advanced Micro Devices (AMD) shares dropped approximately 8% on Thursday. The decline followed a broader semiconductor sector sell-off triggered by Samsung Electronics' preliminary second-quarter results. Samsung reported a 19-fold increase in operating profit. This figure exceeded consensus estimates by a narrow 6% margin.
The modest earnings beat prompted a correction across highly-valued chip stocks. Investors recalibrated expectations for the artificial intelligence industry following the report. The sell-off impacted multiple major semiconductor players beyond AMD.
Goldman Sachs maintained a $640 price target for AMD despite the market volatility. Analysts cited strong growth prospects within the AI server CPU market. AMD will report its own quarterly financial results on August 4.