Advanced Micro Devices Inc. ( AMD ) shares were up nearly 2% on Wednesday before pulling back as the broader market turned lower. Here’s a look at what happened.

What To Know: During an interview aired on CNBC's "Closing Bell: Overtime" on Tuesday, Elon Musk stated that Tesla and xAI will continue purchasing "a lot" of GPUs from both Nvidia and AMD, as long as they outperform in-house chip efforts.

He highlighted xAI's Memphis-based training cluster powered by over 200,000 GPUs and confirmed plans to build a new facility housing one million Nvidia Blackwell GPUs.

The news caused a spike in shares of the chip stocks after hours, which carried into Wednesday’s trading session.

Separately, AMD announced a lineup of new hardware at Computex 2025, which appeared to spur buying activity in AMD shares.

The company introduced its Radeon RX 9060 XT and Radeon AI PRO R9700 GPUs, built on the RDNA 4 architecture, with a focus on 1440p gaming, AI inference and workstation applications. AMD also launched the Ryzen Threadripper 9000 and 9000 WX-Series processors, aimed at high-end desktops and professional use cases.

Despite the bullish momentum, AMD stock rolled over with the broader market Wednesday afternoon after a weak 20-year bond auction led to a spike in Treasury yields above 5.08%. Traders also appeared to react to a new budget bill that could worsen the U.S. deficit. 

AMD Price Action: Despite the strong move in AMD shares to start the day, the stock tumbled in afternoon trading and closed Wednesday’s session down 1.28% at $112.06, according to Benzinga Pro.

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