AMD Slides 8% As Semiconductors Face Crowded Trade Warning, Bond Yield Surge
AMD shares have slid 8% over the past five trading sessions as the Philadelphia Semiconductor Index posted its worst two-day decline since March and long-semiconductor positions hit a record crowding warning. Rising 10-year Treasury yields at 4.61% are pressuring high-multiple chip stocks and prompting profit-taking.
1. AMD Stock Pullback
AMD shares declined 8% over the past five trading sessions as investors moved away from momentum technology names, contributing to the Philadelphia Semiconductor Index’s largest two-day drop since late March.
2. Crowded Semiconductor Trade Warning
Bank of America’s May Global Fund Manager Survey showed 73% of professional investors view long semiconductor positions as the most crowded trade, up from 24% in April, triggering its contrarian sell indicator based on record crowding.
3. Rising Bond Yields Pressure Valuations
Yields on the 10-year US Treasury note rose to 4.61%, increasing discount rates applied to future chipmaker cash flows and prompting institutional profit-taking away from high-multiple semiconductor stocks.