Key Stats for AMD Stock
- Pre-Market Price Change for AMD stock: -4%
- $AMD Share Price as of Nov. 4: $250
- 52-Week High: $267
- $AMD Stock Price Target: $246
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What Happened?
AMD (AMD) stock is down nearly 4% in pre-market trading despite reporting third-quarter earnings that beat Wall Street expectations on both the top and bottom lines.
The chipmaker posted revenue of $9.25 billion (up 36% year-over-year) and adjusted earnings of $1.20 per share, topping analyst estimates of $8.75 billion and $1.17 per share respectively.
The selloff appears tied to AMD’s Q4 gross margin guidance of 54.5%, which came in right at consensus but didn’t exceed expectations.
The company also noted that its guidance excludes any potential revenue from MI308 chip shipments to China, though CEO Lisa Su mentioned that AMD has received some licenses and is working with customers to assess the opportunity.
The decline in AMD stock came on the same day Amazon disclosed it had sold its entire 822,234-share position in the chipmaker as of September 30, though this appears to be a relatively small holding that Amazon built earlier in the year.
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What the Market Is Telling Us About AMD Stock
Despite the pre-market dip, AMD stock remains up over 100% year-to-date, significantly outpacing the Nasdaq’s 21% gain.
The company’s data center business continues to show strength, with revenue climbing 22% to $4.34 billion—ahead of the $4.13 billion analysts expected. Client revenue also impressed, jumping 46% to $2.75 billion.
The real story for AMD stock centers on its push to compete with Nvidia in the booming AI chip market.
Last month’s groundbreaking deal with OpenAI could generate “well over $100 billion in revenue over the next few years,” according to Su, with the AI business targeting tens of billions in annual revenue by 2027.
Oracle also announced plans to deploy 50,000 AMD Instinct MI450 AI chips starting next year, signaling growing customer adoption.
While the market’s immediate reaction to the earnings report was negative, AMD stock remains well-positioned for long-term growth.
The company is ramping production of its MI355 chips and preparing to launch the next-generation MI450 series in the second half of 2026.
Gaming revenue also surged 181% as Microsoft and Sony increased console production ahead of the holidays.
Investors seem to be taking a wait-and-see approach, wanting AMD to prove it can expand margins while scaling its AI operations.
The inline gross margin guidance suggests profitability improvements may take time, even as revenue growth accelerates.
For long-term shareholders, the fundamentals remain solid despite today’s pullback in AMD stock.
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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 stocks mentioned. Thank you for reading, and happy investing!
