What's Going On With AMD Shares

Advanced Micro Devices, Inc. AMD shares are trading lower by 2.0% to $95.46 going into the close of Tuesday's session. Stocks across sectors are falling amid overall market weakness as traders and investors weigh concerns about future rate hikes following last Wednesday's FOMC statement and lower-than-expected initial jobless claims data.

Why It Matters

AMD, like many technology companies, relies on borrowing for various purposes, including research and development and capital investments. When interest rates are expected to rise, the cost of borrowing increases. Higher interest expenses can reduce AMD's profitability and potentially lead to a lower valuation by investors.

See Also: Stocks Tumble, VIX Spikes As Fear Over High Interest Rates Intensifies

AMD's revenue is also influenced by consumer spending on personal computers, gaming consoles and other devices that use its semiconductors. Higher interest rates can make consumer borrowing more expensive, potentially reducing consumer spending on technology products, which can negatively impact AMD's sales and earnings.

What's Going On?

The Federal Reserve last week maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.

The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year...Read More

According to data from Benzinga Pro, AMD has a 52-week high of $132.83 and a 52-week low of $54.57.