AMD shares tumble up to 7.5% before market after Nasdaq futures fall 2%
AMD•Advanced Micro Devices shares plunged between 5.5% and 7.5% in premarket trading on Tuesday as Nasdaq futures fell over 2%, reflecting concerns over AI buildout costs and Fed rate hike outlook. Despite a roughly 150% year-to-date rally, Wall Street’s average price target for AMD remains below its current share price.
1. Premarket Drop on Macro Concerns
AMD shares tumbled 5.5%–7.5% in premarket trading on June 23 as Nasdaq futures fell more than 2%, driven by investor worries over ballooning AI capital expenditure and expectations of further Fed rate increases, which raise borrowing costs for technology firms.
2. Rally Outpaces Analyst Targets
AMD stock has surged approximately 150% year-to-date, yet the consensus Wall Street price target remains below current share levels, prompting debate over whether bullish momentum has outpaced fundamental valuations or if further upside remains.
