Shares of chipmaker Advanced Micro Devices (NASDAQ: AMD) were plunging in Thursday trading, down as much as 7.8% before bouncing to a 7.4% decline as of 2 p.m. ET.

It appears as though today was a "sell the news" event following the stock's run-up ahead of the Nvidia earnings release yesterday, and ahead of Federal Reserve Chair Jay Powell's speech tomorrow in Jackson Hole.

In addition, AMD announced a new AI-focused software acquisition today. While that could be interpreted as a positive, it could also fuel sentiment that AMD is far behind Nvidia and in "catch-up" mode in AI.

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Source Fool.com