AMD Stock Dips Premarket: Chip Giant Announces $10B AI Investment In Taiwan

• AMD shares declined in Thursday’s premarket trading.
• Reporting on Wednesday, Nvidia outlined a stronger push into the CPU market by building on its newly launched Vera line.
• Stocktwits sentiment for AMD has gradually fallen since last week and was ‘extremely bearish’ as of early Thursday.

Advanced Micro Devices shares declined by over 1% in early premarket trading on Thursday, following Nvidia’s results a day earlier, where the AI chipmaker signaled a deeper push into the CPU market with its newly launched Vera chips.

Separately, AMD later announced a slew of updates regarding its operations in Taiwan, which appeared to offer some support.

AMD’s Taiwan Push

The chipmaker said it will invest $10 billion across the Taiwan ecosystem to expand strategic partnerships and scale advanced packaging manufacturing for next-generation AI infrastructure. 

Beyond its partnership with contract manufacturer Taiwan Semiconductor Manufacturing Co., AMD is collaborating with Taiwan-based ASE and SPIL, as well as other industry partners, to develop and qualify next-generation wafer-based 2.5D bridge interconnect technology.

EFB architecture increases interconnect bandwidth and improves power efficiency. These improvements translate into faster, more efficient systems capable of delivering greater performance-per-watt while operating within real-world power and cooling constraints, the company said.

In a separate press release, AMD announced that its next-generation EPYC data center processor, code-named “Venice,” has entered production at TSMC in Taiwan using the advanced 2-nanometer manufacturing process, with future production also planned in Arizona. 

The 2 nm process allows chips to pack in more transistors, improving performance and energy efficiency, and makes “Venice” the first high-performance computing chip to reach production on TSMC’s latest node.

On Wednesday, Nvidia said its newly launched Vera CPUs open up a $200 billion market opportunity for the company as AI workloads increasingly shift toward CPUs alongside GPUs. The comments signaled a deeper push into the CPU market, where AMD has long been a dominant player. 

Retail View On AMD

Still, investors are viewing Nvidia’s upbeat report as a net positive for the sector. “Nvidia just confirmed the AI supercycle is real. AMD is next in line to benefit from it,” said a trader on Stocktwits.

Others blamed the sharp gains in AMD over recent months for the consolidation. “$AMD I'm guessing this to drop all the way back into the bearish channel. It should break the support level at $407,” another trader wrote.

“It would be nice to see it clear the gap from their ER pump putting this in the $360 range. This stock is horribly overpumped like all the semis. I'll buy puts if it breaks the $407 support level,” they said.

Overall, the retail sentiment for AMD has gradually fallen since last week and was ‘extremely bearish’ as of early Thursday. As of their last close, AMD shares are up 109% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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