AMD Stock Has Stumbled Amid Pause in AI Chipmaker RallyWatch This Key Price Level [Video]

Advanced Micro Devices (AMD) extended losses for a second straight session on Monday as investors reassessed how much more room artificial intelligence (AI) chipmakers have to run after their record breaking rally.

After closing at a record high on Thursday, AMD shares fell 1.9% on Friday and dropped another 4.3% on Monday, The stock, which has gained 35% since the start of the year, was up 0.7% at $199.70 in pre-market trading Tuesday at 7:00 a.m. ET.

Magnificent Seven member Nvidia (NVDA) first tripped the AI bull run circuit breaker Friday after its stock staged a dramatic 10% intraday reversal after prominent analysts cautioned about its future growth potential. Those concerns carried over into AMD’s’ stock Monday, as the chipmaker is seen by many investors as a smaller version of Nvidia that has ridden the enterprise AI adoption boom.

Despite the pause in AMD’s stock rally, the chipmaker looks well positioned to capture a …