Advanced Micro Devices Inc. (NASDAQ:AMD) stock fell during Tuesday’s premarket session as investors locked in gains following a powerful rally that has pushed the stock into overbought territory.

The broader market was under pressure before the opening bell. Nasdaq futures fell 0.12%, while S&P 500 futures declined 0.23%.

Against that backdrop, AMD’s pullback appears to reflect broader risk-off sentiment rather than company-specific weakness. High-momentum technology stocks often face profit-taking when market sentiment softens.

Investors are also weighing fresh developments across the AI semiconductor space. The U.S. Commerce Department has closed a loophole that may have allowed Chinese companies to access advanced AI chips from AMD and NVIDIA Corp. (NASDAQ:NVDA) through overseas subsidiaries, according to a Financial Express report.

Under the updated guidance, China-based firms must obtain export licenses regardless of where purchases are made, underscoring the increasing regulatory scrutiny surrounding advanced AI hardware exports.

At the same time, investor positioning within the AI trade continues to evolve. Ark Invest recently sold about $56.2 million worth ...