Why AMD Is Falling Today
Shares of Advanced Micro Devices (NASDAQ: AMD) were falling today, as much as 5%, before settling into a 4.6% loss as of 12:30 p.m. ET.
One can chalk up today's decline to two things: First, the 10-Year Treasury bond continued its ascent, reaching 2.77% today -- that's up more than an entire percentage point since the beginning of the year. Rapidly rising long-term rates tend to hurt high-multiple growth stocks, and at 38 times earnings, AMD is certainly that.
Second, AMD rival Nvidia (NASDAQ: NVDA) was downgraded by analysts at Baird today. Although the downgrade wasn't about AMD, the factors driving the Nvidia downgrade affect AMD as well.
Source Fool.com
