AMD's Stock Stumbles Amid Semiconductor Sell-off, Despite Positive News of Marvell Stake

▲ AMD, Marvell Technology / AI-generated image

Advanced Micro Devices (AMD) fell 4.55%, swept up in the semiconductor sector's sell-off, despite positive news in AI semiconductors regarding its acquisition of a stake in Marvell Technology.

According to financial media outlet FXLeaders on July 3 (local time), AMD closed down 4.55% at $517.82 in recent trading. Although a general cooling trend in the semiconductor sector pressured the stock price, AMD has risen over 110% since the start of 2026, recording a year-to-date return that surpasses NVIDIA (NVDA).

Despite the stock price adjustment, the core narrative remains focused on the expansion of artificial intelligence infrastructure. AMD recently disclosed through an SEC filing that it has acquired a strategic stake in Marvell Technology. This move is interpreted as similar to NVIDIA's earlier strategy, aimed at securing networking and data transmission infrastructure to expand high-performance AI chips in large data centers.

AMD is positioning its Instinct MI350 series as the first alternative in the Graphics Processing Unit (GPU) market dominated by NVIDIA. Data center segment revenue increased by 57% year-over-year to $5.8 billion in the first quarter. FXLeaders reported that major corporate deals, including a supply agreement with OpenAI, drove the growth in this segment.

Wall Street's target price upgrades also continued. Wells Fargo raised AMD's target price to $615, and Cantor Fitzgerald suggested $700. Cantor Fitzgerald rated AMD as the stock with the strongest momentum in the overall compute market.

Changes in index inclusion were also mentioned as a factor stimulating institutional demand. At the end of June, AMD was removed from several Russell value stock benchmarks and included in the Russell Top 50 Index. This indicates a re-evaluation trend from a traditional cyclical semiconductor company to an AI semiconductor company with large-cap growth stock characteristics. However, in the short term, the strong sell-off in the semiconductor sector overshadowed the positive news, and the stock quickly retreated from its intraday all-time high of $584.73 recorded on June 30.

[Article Key Summary]

-AMD closed down 4.55% at $517.82 in recent trading, but has recorded a gain of over 110% since the start of 2026.

-AMD disclosed its strategic stake in Marvell Technology through an SEC filing and is moving to strengthen its networking infrastructure for AI chip expansion.

-Data center segment revenue increased by 57% year-over-year to $5.8 billion in the first quarter, and Wells Fargo and Cantor Fitzgerald set target prices of $615 and $700, respectively.

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