Why AMD Stock Fell Over 5% Today
Shares of chip designer AMD (NASDAQ: AMD) were down 5.4% today as of 12:45 p.m. ET. It's a down day for the market overall, with the Nasdaq Composite index sporting a 1.8% decline. However, AMD said today it is investigating a possible data breach, and pressure from sagging GPU prices may also be contributing to today's AMD sell-off.
Specifically, AMD said this morning it is looking into a claim by cybercrime group RansomHouse, which says it stole 450 GB worth of data (various network files and general company info) earlier this year thanks to weak password protection at the semiconductor company.
Of greater concern, though, are ongoing reports of slumping GPU (graphics processing units, chips used for video games) prices. Consumer-facing products made up 47% of AMD's revenue during the first quarter, so a drop-off in demand is concerning. However, this is more than just a slowdown in consumer spending.
Source Fool.com
