AMD tumbles 12% as AI financing fears drive default risk to new high

Advanced Micro Devices (AMD.US) tumbled more than 12% during regular trading to $497.20.

The semiconductors industry index fell 7.9% over the same period.

Bond default risk indicators for the company hit a recent high as panic over AI financing intensified, driven by earnings misses from tech giants including Intel and Amazon alongside growing concerns about returns on AI investments. The spread on AMD's senior credit default swaps widened by 11 basis points, marking the largest increase in four years and reflecting market worries about the company's financial stability.

The broader semiconductor sector faced a selloff, with the Philadelphia Semiconductor Index falling 5.75% intraday. AMD is scheduled to report third-quarter results on Nov. 3.

Based on public media reports. AI-generated; not investment advice.