Why Arista Networks, Advanced Micro Devices, and Arm Holdings Fell in April
Shares of artificial intelligence related chip stocks including Arista Networks (NYSE: ANET), Advanced Micro Devices (NASDAQ: AMD), and Arm Holdings (NASDAQ: ARM) fell in April, declining 11.5%, 12.2%, and 19%, respectively, according to data from S&P Global Market Intelligence.
After essentially six straight months of impressive gains, stocks in general and especially AI-related tech stocks were perhaps due for a breather. April provided that excuse, as inflation perked up a bit, some AI-related bellwethers reported imperfect earnings reports, and Arista Networks specifically caught a notable analyst downgrade.
The notable sell-off across the market and especially technology growth stocks snowballed when the March consumer inflation index (CPI) came out on April 11. The March figures showed inflation increasing year-over-year to 3.5%, up from 3.2% in the prior month. Although much of that was attributable to rising gas prices amid the tensions in the Middle East, "core" CPI, stripping out food and energy, came in at 3.8%. That was flat with the prior month, but above the 3.7% that analysts had expected.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 78 Buy predictions and 1 Sell predictions.
With a target price of 178 € there is a slightly positive potential of 15.63% for Advanced Micro Devices Inc. compared to the current price of 153.94 €.
