Why did Advanced Micro Devices stock go down today? Blame Russia

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Advanced Micro Devices (NASDAQ:AMD) shares fell sharply on Tuesday as a result of broader sector weakness and concerns from investors that the Russian invasion of Ukraine could take a turn for the worse.

AMD (AMD) shares fell more than 7% on heavy volume to $114.59. More than 105 million shares changed hands shortly after 3 p.m. EST, compared to the average daily volume of just over 85 million shares.

Despite a lack of company centric news, semiconductor companies are complying with sanctions that have been placed on Russia by the U.S. and other countries around the world, forcing them to stop sending shipments to the country amid the ongoing crisis.

In a statement obtained by Seeking Alpha, a Micron Technology (NASDAQ:MU) spokesperson said the company was complying with "all export control regulations and economic sanctions applicable" to its business.

Micron halted all shipments to Russia and Ukraine as of February 24, 2022, the spokesman added, while noting that Russia accounts for less than 1% of its annual revenue.

Oil prices surged on Tuesday, with West Texas Intermediate topping $100 per barrel, rising to the highest levels since 2014, adding to investor concerns.

Late last month, AMD announced a new $8 billion share buyback program, which is in addition to the $4 billion share repurchase program announced in May 2021.

Comments

[Bubba the Beattle]

Biden? Is that you?

[jst]

How about blame an overpriced wannabe company's stock...

[superartus]

I knew i should have went in the options whale who bought strike at a strike of 65, puts on micron with thousands of contracts. Its ok I'll be buying more of micron for my long term account.

[tables 777]

No, don't blame Russia, blame algos perhaps for indiscriminate selling. Great earnings, great guidance, completed merger, terrific buyback program announced, what is not to like here? The panic selling yesterday was way overdone. Is there some issue related to dilution? Perhaps, but the buyback should address that to a significant extent. Moreover, with great growth ahead and the synergies from the merger, the sky is the limit here. I see no reason to sell and any drop in the share price really does represent a buying opportunity.

[nsbm]

@tables 777 what's not to like? The possibility of $150 oil (or higher) while inflation is already raging. That means a recession.

[superartus]

@tables 777 mu and qcom always has these crazy moves on the up and downside.

[Crayfishkaliari]

@nsbm i think its taiwan risk

[Diesel]

Lately AMD seems to be one of those stocks that go down no matter what. It goes down on good news, bad news, neutral news, no news, just down every single day.

[wow&wow]

"Why did Advanced Micro Devices stock go down today? Blame Russia"

For traders to profit from ups and downs, the market! Thank Russia?

[ric koehler]

More thoughts than blaming Russia, where AMD derives little Revenue:
(1) Ambarella reported after Close Feb 28. Tho a good report with "beats" as usual, AMBA was down 31% today. Reason: supply chain disruptions that crimp future revenue til later 2022. In Earnings Call, they referred to problems getting 14 nano from Samsung. It's not clear what specifically is in short supply, and if it's interpreted as another sign that silicon wafers are short, that could spill over to entire chip sector. And sector was weak today, tho not like unreasonable crash in AMD.
(2) AMD was downgraded recently from Buy to Outperform. Big Wow.

In my humble opinion, all these "reasons" amount to a big pile of doggie pxx. Nothing changed lately that would interrupt AMD's ongoing assault on Intel market share.

[tables 777]

@ric koehler Quite right about the latter.

[ttb]

"More than 105 million shares changed hands shortly after 3 p.m. EST, compared to the average daily volume of just over 85 million shares."

What an ambiguous and poorly worded sentence.
105M shares were traded "between open and a little after 3pm"? (Just add a "by" before "shortly", then).

Or a block of 105M shares was traded shortly after 3pm? I doubt this was the meaning, based on reasonableness of figures, but the wording suggests this meaning.

[Russell's Decalogue]

@ttb And how about "company centric news". Omg. Try "company-related news" or just "company news".

[gutcheck]

how does it matter if china continues to ship chips to russia ?

[RUBYRUBY3]

@gutcheck

www.techspot.com/...

Their best is slow

[gutcheck]

@RUBYRUBY3 but china can buy amd etc and ship those to russia

[2CommaClub]

@gutcheck

Yeah, it’s a global economy and supply chain. There are many ways countries can get stuff; it might not be the same price and it might even be cheaper lol.

China and other Asia countries brought lots of discounted Iran and Venezuela oil over the years.

[Green Mean Machine]

Today's stock price will certainly help AMD's $8B re=purchase program. AMD bought $1B of its own stock in January 2022 alone. Thanks to the volatility

[MJHusker01]

So, does that mean the chips will go to automotive, and medical devices?

[olde1two]

Fears in the market Russia, Biden & Powell.
War is NO good for anyone.
Biden may send the wrong message tonight to Russia and or the markets.
Waiting for Powell to say abought tightening and rate increases.
Everything is down to much fear going on.

[betico]

Lets not forget AMD is a high beta stock at nearly 2.0. Anybody that's followed AMD over the last several years knows that these swings are nothing new. Most of them were without a good reason, and resulted in a great buying opportunity.

[tables 777]

@betico and this dip is too.

[CCA_949]

"Why did Advanced Micro Devices stock go down today? Blame Russia." But also blame traders and the uninformed, AMD should not go down this such.

[BKbiobull, CFA]

algos in charge. Normal behavior these days as the machines, which mimic only bipolar activity, run it all. Don’t worry as tomorrow it will be up 4 or 5%. Then down 6% the day after.

[adaret]

Russia not the reason, market was reason.

[Jack Baker]

DCA in March for the big win 12 months from now.

[Soto1]

Basically everything went down, not just AMD.

[Sighcopath]

This movement has much more to do with Biden "State of the Union" address (20%) and Powell and the FED talking tomorrow (70%) than it does with Russia invading Ukraine (10%). With AMD being FCF Positive and holding little debt, especially with cash on hand to cover the debt, Interest rate moves should have a negligible effect on AMD. Anything under $120/share (~$200 Billion AMD market capitalization) is a buying opportunity. Really nice income potential by writing the $100 puts (pick your own time frame risk) for the next few weeks.

[Jstic]

@Sighcopath Been doing exactly that for the past month with AMD $100 puts. Actually hoping the shares are put to me as AMD under $100 is a bargain and then some.

[kyle191]

@Jstic ..I have been doing the same.

[Riyas Nr]

@Sighcopath I was doing for 115.. more realistic to get assigned. Or will be rolled in to next week.

[mtnman13]

Nice to get this kind of buying opportunity today