Advanced Micro Devices Inc. (NASDAQ:AMD) stock was down nearly 4% in Thursday’s premarket trading as semiconductor stocks broadly weakened following Taiwan Semiconductor Manufacturing Company Ltd.’s (NYSE:TSM) second-quarter earnings report and increased capital spending outlook.
Broader market sentiment also weakened, with Nasdaq futures down 0.89% and S&P 500 futures off 0.31%.
Taiwan Semiconductor Sparks Sector Pullback
The sector pullback came after Taiwan Semiconductor reported better-than-expected second-quarter results and raised its capital expenditure forecast.
While the outlook reinforced long-term demand for artificial intelligence chips, investors appeared concerned about the scale of future spending, triggering broad profit-taking across semiconductor stocks.
