AMD Drops 4% to $534 as Valuation Concerns Pressure AI Rally

AMD shares fell 4.21% to $534.39 on July 13, underperforming the broader market as investors reassess its premium valuation near 77x forward earnings. The latest weakness follows a volatile July that saw AMD hit an all-time high of $580.91 and approach $1 trillion market cap before a Reuters report on DeepSeek’s in-house chip triggered a 7% drop on July 7. A sharp rebound on July 9, sparked by Fundstrat’s Tom Lee calling the selloff a buying opportunity, proved short-lived as renewed profit-taking returned focus to stretched multiples despite AMD’s Q1 data-center revenue surpassing Intel at $5.8 billion, up 57% YoY.