Why AMD Stock Tumbled 18% in July

AMD stock fell 18% in July amid a broader semiconductor sector sell-off driven by concerns over excessive AI spending by tech companies and potential reduced returns on AI infrastructure investments. The decline was further pressured by reports that Chinese AI company DeepSeek is developing its own AI processor, intensifying competition concerns. Despite beating Q2 earnings estimates, AMD's stock continued to decline as investors recalibrated expectations given the company's premium valuation.