AMD and ARM have otherwise been major outperformers this year
The chip sector is still seeing a slew of downbeat attention following yesterday's disappointing earnings from Broadcom (AVGO). Two names succumbing to today's selloff are Advanced Micro Devices Inc (NASDAQ:AMD) and Arm Holdings PLC (NASDAQ:ARM), last seen sporting respective losses of 6% and 9%, to trade at $492.08 and $358.
AMD has fallen back below the $500 threshold, just two days after tapping its June 3 record high of $546.44. Shares remain 128% higher year-to-date, however, with the 20-day moving average moving in as a line of potential support. Elsewhere, ARM has seen a similar surge, hitting a record high of $427.99 on June 2, now up 230% for 2026.
Analysts have been flooding both chip names with bullish attention. Heading into today, 37 of the 45 brokerages covering AMD and 23 of the 31 following ARM sport a "buy" or "strong buy" rating. Should this sentiment begin to unwind, it could trigger more headwinds for the chip leaders.
Short interest is extremely elevated for both stocks. Advanced Micro Devices and Arm stocks are sporting respective floats of 2.8% and 13%, following surges of 25.4% and 17.8% in short interest over the past two reporting periods, respectively.
Lastly, AMD and ARM both sport a lofty Schaeffer's Volatility Scorecard (SVS). Their respective reading come in at 95 and 94 (out of 100), suggesting the equities have each consistently realized higher volatility than its options have priced in.