Advanced Micro Devices, Inc. (NASDAQ: AMD) saw its shares rise more than 2% on Tuesday, reversing a recent risk-off trend affecting AI-linked stocks. The stock climbed to $505.06, according to Benzinga Pro data at the time of publication.
The move came as investors reassessed fears that a focus on AI safety could slow infrastructure and capital spending. During a prior session, AMD had fallen nearly 6% in premarket trading alongside declines in Nasdaq and S&P 500 futures. The earlier drop was attributed to a debate over whether slowing AI development would reduce the pace of capital spending behind AI buildouts.
AMD was not the only semiconductor company to experience volatility. Intel Corp. (NASDAQ: INTC), NVIDIA Corp. (NASDAQ: NVDA), and Broadcom Inc. (NASDAQ: AVGO) each fell between 3% and 6% during the same session.
Pella Funds CIO Jordan Cvetanovski noted that while NVIDIA does not appear expensive on a one- to three-year view, he sees greater risk from heavy investor concentration across AI and semiconductor stocks. He warned that weaker data-center demand or a shift in the AI narrative could trigger a rapid unwind in chip and hardware stocks.
Cvetanovski suggested that a weaker AI trade could push some investor money from chips and hardware toward software companies such as Microsoft Corp. (NASDAQ: MSFT), Intuit Inc. (NASDAQ: INTU), and SAP SE (NYSE: SAP).
