AMD stock has lost 50% of it’s value since november from it’s $161.91 per share.
Here are 10 reasons why AMD can lose more of it’s value.
- Inflation: After the latest fed meeting, it’s clear that the fed will force the economy into recession to prevent more inflation. Currently, inflation in the US has reached 8.6% from 7% last month. During the recession consumer spending will be down, as a result, the suppliers and manufacturers will cut down costs and slow the production of goods. AMD might face a similar low production dilemma due to consumer spending.
- Cut down in RnD department: Due to the high-interest rate in debt, AMD will cut down their research and development department massively. which will hamper the introduction of new products every year.
- Bitcoin and Mining: Even though AMD offers direct mining gears and devices for bitcoin and other cryptocurrency coins, AMD has seen a decrease of demand in the mining world. Currently, most mining graphics cards are being resold online less than their MSRP. the crypto bear market has made most of the mining operations unprofitable. Which is directly effecting AMD’s business
- Intel’s market domination:
Intel’s 12th Gen core i9 processor has been creating happy faces in the tech world. Intel has been ramping up it’s production. Still, a lot of device manufacturers are consuming intel processors in their devices. Even though AMD’s latest processors has a stronghold against intel, still AMD is far behind the market share of intel.
- Slow business growth: Even though AMD is a tech company, for the last 10 years AMD hasn’t invested in much. Their main focus has been the processor’s market. While companies like apple, google invested heavily in clean energy and autonomous vehicles. Slow business growth can be a downturn of AMD.