New York, Jan 30, 2026, 10:39 EST — Regular session
- AMD shares dropped roughly 3.6% in morning trading, underperforming after inflation data came in higher than expected.
- The chip sector’s recent rally, fueled by AI data-center demand, hit a snag with this pullback. (Reuters)
- Attention now turns to AMD’s earnings on Feb. 3 and the U.S. jobs report due next week. (Reuters)
Advanced Micro Devices shares dropped roughly 3.6% on Friday, deepening a turbulent run for semiconductor stocks amid new inflation data that continued to weigh on rate-sensitive growth names.
This shift is crucial as AMD approaches next week’s earnings report with hardly any margin for slip-ups. Investors have been swift to penalize solid outcomes from major tech players if guidance or spending fall short of high expectations. (Reuters)
The selloff comes after chipmakers enjoyed a robust rally earlier this week, fueled by investor bets on AI-focused suppliers as demand appeared to extend past Nvidia’s top processors. (Reuters)
AMD dropped $9.20 to $242.98 in early trading. Nvidia held steady, and Intel edged down roughly 0.4%.
Friday’s macro data weighed on markets. U.S. producer prices, a key measure of wholesale inflation, climbed more than anticipated in December. The producer price index increased 0.5% month-over-month and 3.0% year-over-year, Reuters reported. (Reuters)
The report highlighted an increase in services costs and indicated that companies are beginning to pass along higher import expenses linked to tariffs, a development that could complicate the inflation picture. (Reuters)
AMD is gearing up to release its quarterly results after the market closes on Tuesday, Feb. 3. Management will follow up with a conference call at 5:00 p.m. EST. (Advanced Micro Devices, Inc.)
Wall Street is focused on whether gains in data-center chips can make up for weaker spots in other parts of the semiconductor cycle, and if AMD’s forecast lives up to the high bar set by its recent rally.
Analysts surveyed by FactSet are forecasting AMD’s quarterly earnings per share at $1.32, with revenue hitting $9.65 billion, according to Investors.com. (Investors)
Even the bulls warn of a sudden, headline-fueled pullback. George Tkaczuk of RCM Wealth Advisors noted that “despite strong fundamentals, the stock does not always react positively,” highlighting AMD’s past pattern of sharp reversals. (Investors)
The downside is clear: if inflation remains stubborn and hopes for rate cuts fade, high-multiple chip stocks could quickly lose their footing. Add any sign of weakening cloud spending, and the pressure would only intensify.
Traders will next focus on AMD’s Feb. 3 earnings and outlook, before shifting attention to the U.S. jobs report set for Feb. 6, which will offer fresh clues on growth and interest rates. (Reuters)
