Advanced Micro Devices Inc. (NASDAQ:AMD) shares are trading lower during Monday’s premarket session.

The decline follows a weekend of escalating geopolitical tensions that have dampened investor appetite for high-growth technology names.

Geopolitical Tensions Weigh On Tech

U.S. stock futures fell Monday morning after President Donald Trump announced a blockade of the Strait of Hormuz. The move followed the collapse of peace talks in Islamabad on Sunday. The breakdown occurred after 21 hours of discussions. Vice President JD Vance stated Washington would not compromise on its core demands.

Rising Oil And Yields

The blockade caused crude oil futures to spike over 8%, hovering near $104.55 per barrel. Allianz’s Mohamed El-Erian noted that households worldwide face the burden of “another leg up in the price of energy.” Higher energy costs often fuel inflation fears, pushing the 10-year Treasury yield to 4.333%.

Sector-Wide Tech Sell-Off

The broader market is feeling the heat. Nasdaq 100 futures declined 0.62% Monday morning. While Friday saw gains in information technology, the shift in the geopolitical landscape has reversed momentum.

Resilient AI Demand Background

Despite Monday’s dip, Advanced Micro Devices saw strength Friday after Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) reported a 35.1% year-over-year revenue increase. TSM noted that March sales rose 45.2%, suggesting that global AI infrastructure spending remains aggressive even amid macroeconomic volatility.

AMD Stock Price Action: Advanced Micro Devices shares were down 1.25% at $241.97 during premarket trading on Monday, according to Benzinga Pro data.

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