What Just Happened To AMD Stock?

For questions about this article or underlying research, email help@trefis.com.

Shares of Advanced Micro Devices (AMD) dropped 17.3% on Thursday, November 5, 2026, compared with a 4.4% decline for the S&P 500. The sell-off occurred two days after AMD discussed its third-quarter results on a November 3 earnings call, and one day after the company filed its quarterly report with the SEC. All five chip makers on its peer list fell more than 9% during the same session. News reports that day tied the chip sell-off to investor worries that the Democrats’ midterm election win could bring tighter rules for the AI industry. What did AMD report on that call?

AMD Reported Record Revenue And Forecast Faster Growth

Third-quarter revenue climbed 44.7% from a year earlier to $13.4 billion, finishing above the high end of management’s guidance. Management said the growth came from the data center business, which sells EPYC server processors and Instinct chips for AI. Revenue for that segment nearly doubled to $8.5 billion.

The outlook pointed to even faster growth. Management expects fourth-quarter revenue of about $17 billion, plus or minus 3%. At the midpoint, that would represent an increase of about 66% over the prior year. For 2027, the company expects revenue to grow more than 80%, with most of that gain coming from the data center business.

Cash was the weaker part of the quarter. Free cash flow dropped to $554 million from $1.9 billion a year earlier, and management said the company was spending on inventory, equipment and capacity for its data center business. Shares gained 1.0% on November 4, the trading session immediately following the call, before falling the next day.

Did AMD Fall With Other Chip Stocks?

AMD fell alongside the rest of the chip group, declining further than any of its five listed peers. The sell-off extended well beyond AMD: the technology sector fund XLK lost 8.0%, and the Nasdaq Composite declined 5.5%. Marvell Technology came closest to matching AMD with a 16.4% drop, while Nvidia, Intel, Broadcom and Qualcomm fell by 9.3% to 10.4%.

Sell-offs like this tend to bunch together: 11 of the last 21 came in 2008-09. See what came after them.

Where Does AMD Stock Stand Now?

A decline of this magnitude is rare for AMD. In the prior year, the stock had one other, on February 4, 2026. Over the past twelve months, the shares still returned 61.7%, compared with 9.9% for the S&P 500. During that year, the stock closed as low as $190.95 on March 3, 2026, and as high as $649.42 on October 6. Between October 7 and November 5, AMD lost 37.4%, against a 5.7% decline in the S&P 500.

Even after the drop, AMD traded at 14.6 times its sales over the past twelve months at the November 5 close, compared with 3.2 times for the S&P 500. AMD is expected to issue its next report, covering the fourth quarter of fiscal 2026, in February 2027. Data center revenue, which management expects to grow about 50% in the fourth quarter from the third, is the measure to watch.

How Much Advanced Micro Devices Do You Already Own?

If you own an S&P 500 or Nasdaq fund, you already own Advanced Micro Devices, alongside the same few giants that lead those funds. The Trefis High Quality (HQ) Portfolio takes a different route: 30 quality companies in equal weight, so no single stock dominates. Since its inception in September 2020 it has returned 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000.

See How The HQ Portfolio Works

Spot an error or want more like this? Tell us in 10 seconds.