Key Takeaways
- AMD fell 9% today, giving back part of this week’s roughly 30% gain after Nvidia CEO Jensen Huang resigned.
- That gain came from Nvidia’s turmoil, and fast money leaves fast.
- Marvell, Intel and Arm fell with AMD as the 10-year yield climbed above 5%.
- Analysts expect AMD’s normalized EPS to more than double in 2027, and Nvidia’s report next Tuesday is the next test.
Advanced Micro Devices (AMD) fell 9% today, giving back part of the roughly 30% it gained this week after Nvidia (NVDA) CEO Jensen Huang resigned.
AMD put out no news of its own, and investors sold the whole chip group, Marvell Technology (MRVL), Intel (INTC) and Arm Holdings (ARM) included.
Easy come, easy go
Huang resigned on Thursday, and investors piled into AMD as the obvious alternative. Today some of that money went back out.
Nvidia fell 2% after HSBC cut it to Hold. The 10-year yield also hit 5.17% after a hot wholesale inflation reading, and higher yields hurt stocks priced on profits years out.
Nobody got a pass
Marvell fell 5% with no news of its own. It agreed to buy Lumentum on Nov. 2 and said its fiscal third-quarter revenue was in line with guidance, so its Dec. 1 report is its chance to show the selling was about the group.
The server CPU makers fell together, too: Intel slipped 3% and Arm 5%. UBS’s Timothy Arcuri estimates third-quarter server CPU shipments rose 31% from a year earlier, with Arm’s unit share up to 20.1%, Intel’s down to 51.5% and AMD’s roughly flat at 28.4%. When all three fall at once, investors are questioning how long that market keeps growing.
TIKR tracks 54 analysts on AMD. How many say “Buy”?
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The numbers still hold up
Analysts expect AMD’s normalized EPS to more than double in 2027:
That 2027 estimate was $15.76 on Oct. 23. Most of the jump comes from Helios, AMD’s rack-scale GPU system, already running workloads for OpenAI, Meta and others.
AMD traded at 39x forward earnings at the last close. That’s above its five-year average of about 35x but far below the 67x it hit in June:
Today’s drop takes it to about 35x, right around that average. The risk is the customers paying for those racks: OpenAI, which holds up to 6 gigawatts of Helios commitments, posted a $10.9 billion adjusted operating loss in its third quarter, The Wall Street Journal reported.
AMD’s own case is intact. At about its usual multiple, on estimates that keep climbing, I’d rather own AMD after today’s drop than a day earlier. Of course, Nvidia reports next Tuesday with no permanent CEO, and the whole group will trade on what it says.
So what is AMD stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
