Here's How AMD Shares Lost 25% Last Month
Shares of Advanced Micro Devices (NASDAQ: AMD) fell 24.9% in June 2022, according to data from S&P Global Market Intelligence. The microchip designer's stock has now dropped 47.8% in 2022, including a 20.6% plunge in January and a 21.8% haircut in April. The market has not exactly rolled out the red carpet for high-flying growth stocks in recent months, and AMD is also facing more-specific headwinds on top of that marketwide trend.
Macroeconomic fears and concrete marketwide problems powered some of AMD's largest single-day drops last month. Oversize inflation readings point to rising costs of doing business. Furthermore, the same economic pressure might lead to lower demand for AMD's products as consumers and companies tighten their belts.
In a completely different corner of the market, falling cryptocurrency prices have cooled down the formerly piping-hot demand for crypto-mining processors and systems. AMD's graphics processing units (GPUs) happen to be good at churning through the mining algorithm for Ethereum (CRYPTO: ETH). That inspired Ethereum miners to snap up every cost-effective GPU they could find for a few months, leading to shortages and sky-high unit prices for gamers and professionals who just wanted to use the graphics processors for their intended purpose.
Source Fool.com
