Advanced Micro Devices, Inc AMD stock is experiencing a decline on Friday due to reports that Taiwan Semiconductor Manufacturing Company Ltd TSM has delayed the delivery of high-end chipmaking equipment.
TSMC, which is a key supplier for AMD, has postponed production at its Arizona plant until 2025 due to recruitment difficulties and union opposition. This adds further pressure on the contract chipmaker amidst the global chip shortage.
The delay by TSMC has raised concerns in the chipmaking sector regarding supply shortages, particularly with the ongoing demand driven by AI technology.
Additionally, Nvidia Corp NVDA has faced competition in the gaming GPUs market as retailers Newegg Commerce, Inc NEGG and Amazon.Com Inc AMZN have reduced prices of its popular RTX 4070 GPUs in response to AMD launching its $500 RX 7800 XT.
The retailers have lowered the price of the RTX 4070 by $50 to $550 and the RTX 4060 Ti 16GB price by $50 to $450.
There is also a looming threat from China’s Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) as they attempt to build a domestic chip ecosystem to compensate for U.S. semiconductor sanctions on China.
Price Action: AMD shares are currently trading lower by 3.87% at $102.46 as of the latest check on Friday.
