Australian Securities Exchange (ASX)-listed nuclear and uranium-related shares experienced a downturn on Thursday, mirroring losses on Wall Street. This decline followed a disappointing sales forecast from Advanced Micro Devices (AMD), which has dampened confidence in the anticipated demand for artificial intelligence (AI) technologies. The weaker outlook for AI is considered a potential impediment for uranium stocks, as many investors believe nuclear energy will be needed to power AI data centres by providing a stable and affordable power source.
Among the affected companies, Deep Yellow shares fell by 3.2 per cent during morning trade. Paladin Energy experienced a steeper decline of 5.8 per cent, while Nexgen Energy recorded the most significant drop at 7.6 per cent. AMD’s stock suffered its most substantial single-day fall in nearly nine years after the chipmaker’s sales forecast failed to meet investor expectations, signalling concerns about its progress in the AI sector.
AMD, a global semiconductor company, develops computer processors and related technologies for business and consumer markets. The company announced that it anticipates first-quarter sales of approximately US$9.8 billion, plus or minus US$300 million. This figure fell short of some analysts’ projections, which had exceeded US$10 billion.
Consequently, AMD’s shares plummeted by 17 per cent to US$200.19 in New York trading on Wednesday, marking its largest single-day decrease since May 2017. Prior to this downturn, the company’s shares had risen by 13 per cent year-to-date through Tuesday’s close.
