AMD shares fell 10.9% to $505 on Friday after Intel's weak PC demand warning triggered a chip selloff, leaving the stock 23% below its 52-week high of $659, though it is still up 42.4% over six months. In the second quarter, data center revenue rose 107% to $6.7 billion, or 58% of record total revenue of $11.5 billion, and AMD guided third-quarter revenue to about $13 billion with non-GAAP gross margin near 56%. Lisa Su expects data center revenue to more than double in 2027, and the Meta partnership covers 6 gigawatts of AMD GPUs. The stock trades at 45.1x forward earnings; the author sees the drop as possibly overdone but flags gross margin as the main risk, since MI450 rack systems carry more memory and third-party content. Third-quarter results due Tuesday, November 3, will be measured against the $13.09 billion revenue consensus, and the Street's $640 average target implies 27% upside.
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.64 |
| Change that session | -4.22% |
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 690.49 |
| Change that session | -3.47% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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