Advanced Micro Devices, Inc. (NASDAQ: AMD ) is at a place right now where it absolutely has to do something to avoid further pain. The news only gets worse as we broaden the picture.

Since closing at a recent high of $14.76 on July 26, AMD stock is down more than 18%. This compares exceptionally unfavorably to rival Nvidia Corporation. (NASDAQ: NVDA ), which shed less than 5% over the same timeframe.

Against this year’s opening price of $11.42, AMD stock is now only in the clear by a 7.5% margin. In a matter of a few days, Advanced Micro Devices lost its grip on its modest, double-digit gains.

Prior to the recent slide, the company’s 2017 performance impressed Wall Street because it had a mammoth 2016. But now, circumstances are looking rather pedestrian.

Of course, we’re discussing the semiconductor market, which naturally is very cyclical and vulnerable to industry shifts. Both management and investors only have to look at its own mercurial rise to realize that patience sometimes pays off. For AMD stock, it paid off bigly, especially considering that so many analysts were calling for its early demise.

But the longer Advanced Micro Devices takes to gain traction, the more likely investors will lose patience. Keep in mind that those who have bought into AMD stock since early 2016 have profited immensely. Also, note that the fundamentals haven’t changed much between then and now.

AMD is a penny stock that’s finally found its groove. From a speculator’s perspective, the current story has a lot more risk involved.

AMD Struggles Under Pressure

Psychologically, few people want to buy a stock near multi-year highs. Magnify that sentiment two- or three-fold when the company in question is a turnaround candidate. Most investors would look at AMD and focus on its 309% return for 2016. This is a speculative name that has already done a 180-degree turn. How can more profitability be realized from Advanced Micro Devices?

It’s bad enough when some traders are thinking this calculation out loud. It’s even worse, though, if a major player like Abu Dhabi’s Mubadala Investment has an itchy, trigger finger. As InvestorPlace contributor Dana Blankenhorn explains:

The fund has dumped big blocks of shares twice this year. It had been the largest shareholder of the company, a stake going back all the way back to 2007.

Its most recent selloff represented 3.9% of AMD’s entire float, a 40 million share block that should, when you look at Advanced Micro Devices’ own reports, make it the second-largest holder, on a level consistent with the mutual fund companies that hold it passively for their U.S. investors.

The idea that Mubadala Investment would hold onto AMD stock seems questionable considering its clear desire to get out. Furthermore, Blankenhorn astutely states that testy political dynamics exist in the Middle East, particularly in the UAE region.

Mubadala, which is state-owned, could have more important things to do than to play around with a speculative, semiconductor company.

AMD Stock Is Riskier Than Before

At this juncture, I feel that the risks outweigh the rewards. True, Advanced Micro Devices, along with Nvidia, raked in the dough for its cryptocurrency-centric GPUs. AMD competes pound-for-pound with Intel Corporation (NASDAQ: INTC ), forwarding impressive contributions. Of course, AMD stock’s extraordinary rally gives it increased credibility.

However, management can fire on all cylinders, but if Mubadala sells out, the markets might panic. If that scenario doesn’t arrive, AMD is still not guaranteed a clear path to fully complete its turnaround. Leveraging its vastly superior resources, Intel could out-innovate AMD, and that could also be the final curtain call.

But where I’m especially leery about AMD stock at this level is the company’s overall picture. Both Nvidia and Intel are making significant progress in next-generation technologies. I see Advanced Micro Devices spending more time trying to remain relevant, while its rivals research tomorrow’s marketplaces.

I’ve said this before, but I’ll repeat it again — I respect AMD for its remarkable rally. But now that it’s reached the pinnacle, what more is left? Both big and small investors are pensive about its future prospects.

AMD stock made sense for speculators last year because they saw what many didn’t. Today, everybody sees the same thing, which makes the tech firm considerably less appealing.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.