Why Advanced Micro Devices Stock Fell Nearly 21% in January
Shares of Advanced Micro Devices (NASDAQ: AMD) fell 20.6% in January, according to data provided by S&P Global Market Intelligence. 2022 got off to a rough start for growth stocks, which are sensitive to changes in interest rates. The U.S. Federal Reserve indicated it will be raising its benchmark rate to try to tamp down inflation, sending high-flying stocks in retreat. AMD was no exception.
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The decline in share price comes in spite of strong ongoing demand for AMD and other semiconductor designers. After all, even after its tumble, AMD stock was trading for a hefty 47 times trailing-12-month free cash flow at the end of January. It's completely normal for premium-priced stocks to endure some bouts of volatility.
Source Fool.com
