Benzinga - Advanced Micro Devices (AMD), Inc. (NASDAQ: AMD) shares are trading lower amid overall market weakness. Weakness may also be due to reports of the EU nearing a Chips Act to reduce reliance on US and China semiconductors.
What to Know: On Wednesday, markets trended downwards after the latest ADP private payrolls report, which showed slowed job growth in March. In February, the number of available job positions fell below 10 million for the first time in nearly two years. Recession fears are lingering, as many analysts expect slow economic growth in the next year.
Additionally, The European Union is near finalizing a deal on Chips Act next month. According to a Reuters article, the EU's 43 billion euro ($47 billion USD) plan to boost its semiconductor industry is likely to be finalized on April 18. The proposed legislation aims to grow the EU's share in the global chip market to 20% in the next decade, following the United State's lead which passed the CHIPS for America Act in 2022. Increased investment in European-based semiconductor companies could decrease AMD's market share in the region.
Advanced Micro Devices designs microprocessors for the computer and consumer electronics industries. The majority of its sales are in the personal computer and data center markets via CPUs and GPUs. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox.
According to data from Benzinga Pro, AMD shares were down 3.85%, trading at $92.21 at the time of publication. The stock has a 52-week high of $110.93 and a 52-week low of $54.58
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