Why AMD Shares Are Diving Today

Advanced Micro Devices, Inc. AMD shares are trading lower by 6.35% to $80.68. Weakness may be due to reports the company is investigating a data breach after RansomHouse claimed it has 450Gb in stolen data. The stock may also be down following a DigiTimes report suggesting Intel is cutting Alder Lake CPU prices amid slowing PC demand.

Shares of growth stocks have also been volatile in the month of June amid an overall market selloff partially generated by worse-than-expected U.S. May inflation data. The all items index CPI datapoint increased 8.6 percent for the 12 months ending May, the largest 12-month increase since the period ending December 1981.

Inflation concerns have weighed on the economic outlook and have also raised expectations for further Fed rate hikes. A rise in treasury yields has also weighed on tech and growth stock valuations.

The rise in U.S. Treasury yields hinders growth companies such that, when interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

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According to data from Benzinga Pro, AMD has a 52-week high of $164.46 and a 52-week low of $79.43.