AMD's Stock Price 'Stumbles' Amid Semiconductor Sell-off, Despite Positive News of Marvell Stake

▲ AMD, Marvell Technology/AI generated image

AMD (Advanced Micro Devices, AMD) fell by 4.55%, swept away by a sell-off in the semiconductor sector, despite the positive news of securing a stake in Marvell Technology, an artificial intelligence (AI) semiconductor.

According to financial media FX Leaders on July 3 (local time), AMD closed down 4.55% at $517.82 in recent trading. Although a cooling trend across the semiconductor sector pressured the stock price, AMD has risen by over 110% since the beginning of 2026, recording a year-to-date return that surpasses NVIDIA (NVIDIA, NVDA).

Despite the stock price adjustment, the key driver remains the expansion of artificial intelligence infrastructure. AMD recently disclosed in an SEC filing that it has acquired a strategic stake in Marvell Technology. This move is similar to NVIDIA's earlier strategy and is interpreted as a strategy to secure networking and data transfer infrastructure for expanding high-performance AI chips in large data centers.

AMD is establishing itself as the first alternative in the Graphics Processing Unit (GPU) market, dominated by NVIDIA, with its Instinct MI350 series. Data center segment revenue increased by 57% year-over-year to $5.8 billion in the first quarter. FX Leaders reported that large corporate deals, including a supply agreement with OpenAI, drove the growth in this segment.

Wall Street's target price upgrades also continued. Wells Fargo raised AMD's target price to $615, and Cantor Fitzgerald suggested $700. Cantor Fitzgerald evaluated AMD as the stock with the strongest momentum in the overall compute market.

Changes in index inclusion were also mentioned as a factor stimulating institutional demand. AMD was removed from several Russell value benchmarks and included in the Russell Top 50 Index at the end of June. This shows a trend of re-evaluation from a traditional cyclical semiconductor company to an AI semiconductor company with the characteristics of a large-cap growth stock. However, in the short term, strong semiconductor sector selling pressure overshadowed the positive news, and the stock quickly retreated from its intraday all-time high of $584.73 recorded on June 30.

[Article Summary]

-AMD closed down 4.55% at $517.82 in recent trading but recorded a rise of over 110% since the beginning of 2026.

-AMD disclosed its strategic stake acquisition in Marvell Technology through an SEC filing and is strengthening its networking infrastructure for AI chip expansion.

-Data center segment revenue increased by 57% year-over-year to $5.8 billion in the first quarter, and Wells Fargo and Cantor Fitzgerald suggested target prices of $615 and $700, respectively.

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