News · Advanced Micro Devices, Inc. (AMD) · Technology
AMD falls 17.3% after election-day selling coincided with post-earnings profit-taking
What happened
AMD fell 17.3% on November 5, 2026, after heavy selling that coincided with post-election weakness across AI chip stocks and came days after a strong third-quarter report. Trading volume was 3.0 times its 20-day average as the stock opened 7.4% below the previous close and traded sharply lower amid broad sector pressure and debate over valuation and dilution risks. Reports of the quarter’s strong Data Center performance and management guidance for faster revenue growth in 2027 circulated alongside election-related selling, so the move is best read as partly market- and sector-driven and partly company-specific.
How big was the move
The stock closed at $404.40, a decline that was 3.8 times a typical daily move for this stock and 10.2 percentage points worse than the Technology sector median on the day. The S&P 500 fell 4.4% on the session while the sector median fell 7.1%, leaving AMD’s decline larger than both the market and its peers. Over the last five sessions the stock fell 28.6%, compared with the S&P 500’s five-session loss of 4.7%.
The technical picture
The stock traded 24.4% below its 20-day moving average and 26.1% below its 50-day moving average, while it was 2.6% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend despite the recent setback. The relative strength index (14 days) stood at 30 (below 30, a level often called oversold). The stock was 38.6% below the 52-week high, had fallen 37.4% over one month and 16.3% over three months, yet it rose 61.7% over one year, which is 53.1 percentage points ahead of the S&P 500. Volatility was 72% annualized over 60 days, higher than 92% of its own readings over five years, underscoring elevated short-term price swings.
Fundamentals and valuation
Over the four quarters through September 26, 2026, AMD reported revenue of $45.44 billion, which grew 41.9% from a year earlier, and diluted earnings per share of $4.60, which rose 125.5% from a year earlier. Gross margin was 53.7% (a year earlier: 48.3%), operating margin was 17.7% (a year earlier: 8.8%), and free-cash-flow margin was 15.5%. Return on invested capital was 7.6% and the balance sheet showed net debt of 0.1 times EBITDA. Share count over one year increased by 1.2%.
On valuation, the stock traded at 87.9 times trailing earnings and 52.8 times expected earnings, with a free-cash-flow yield of 0.9%. The price-to-trailing-earnings reading was lower than 65% of its own readings over the past five years (five-year median: 108.9 times earnings).
Earnings and analyst expectations
AMD reported on November 3, 2026, earnings per share of $2.09 against $1.95 expected, 7.2% above estimates, extending a streak of eight consecutive quarters beating estimates and an average surprise of 7.9% above estimates over the last four reports. Typical two-day reactions after recent reports saw the stock rise 1.3%.
Management provided guidance implying revenue growth above 80% for 2027 and flagged an expanded Data Center contribution; some reports cited adjusted operating margin at 29% and segment margin at 33.7%. Analysts maintained a consensus price target of $627.14, which is 55.1% above the closing price, based on 71 analysts with a consensus rating of Buy. Seventy-two percent of those ratings were Buy or Strong Buy.
What to watch
- February 2, 2027: next scheduled earnings report.
- Management guidance implying revenue growth above 80% for 2027, reported after the November 3, 2026, release.
- Data Center revenue figures and margins cited in the quarter: Data Center revenue was reported as $8.5B (or $8.55B across sources) and adjusted operating margin was cited at 29% in some reports.
- Analysts’ consensus price target of $627.14 and the distribution of 71 analyst ratings, with 72% rated Buy or Strong Buy.
- Election-day and sector correlations: reports of sectorwide selling around midterm results and intraday declines of about 13% in AI chip stocks, as described by Investopedia and Benzinga.