NEW YORK, July 16, 2026, 4:06 p.m. EDT
- AMD’s market capitalization dropped by about $46 billion by the end of trading on Thursday.
- The stock’s trailing P/E stood at 164, compared to Nvidia’s NASDAQ:NVDA 32.
- The company’s next catalyst is the Advancing AI event set for July 23.
Shares of Advanced Micro Devices NASDAQ:AMD dropped 5.3% to $500.94 on Thursday, wiping out about $46 billion in market value based on reported shares outstanding. U.S. regular trading had ended.
The decline was steeper than the 4.3% fall in the PHLX Semiconductor Index. Shares of Nvidia NASDAQ:NVDA slipped only 2.4%. AMD did not issue a demand warning.
Taiwan Semiconductor Manufacturing Co NYSE:TSM reported a 77% rise in quarterly profit, with net income coming in at T$706.6 billion, surpassing the T$632.6 billion SmartEstimate. Despite this, its U.S. shares slipped 2.3%.
The trend reflects valuation and positioning rather than diminished foundry demand. The disparity remains significant.
| Company or index | Thursday close | Daily move | Trailing P/E |
|---|---|---|---|
| Advanced Micro Devices NASDAQ:AMD | $500.94 | down 5.33% | 164.4x |
| Nvidia NASDAQ:NVDA | $207.40 | fell 2.40% | 31.8x |
| Broadcom NASDAQ:AVGO | $374.45 | dropped 5.03% | 62.4x |
| Taiwan Semiconductor ADR NYSE:TSM | $409.74 | off 2.32% | 34.9x |
| PHLX Semiconductor Index (INDEXNASDAQ: SOX) | 11,867.50 | lost 4.29% | — |
Closing figures and trailing multiples reflected Thursday’s closing values.
AMD trades at a multiple 5.2 times higher than Nvidia’s and 4.7 times TSMC’s. However, the consensus analyst price target stands at $538.19, which is just 7.4% above Thursday’s closing price. Analysts have issued 28 buy ratings, eight holds, and no sells, indicating a limited consensus buffer.
AMD shares climbed 7.7% in the prior trading week, but have fallen 10.2% since last Friday. The stock is now trading 13.8% under its June 30 close.
Gene Goldman, chief investment officer at Cetera, described the AI trade as “being priced on perfection.” He referred to Thursday as “the market catching its breath, not changing its mind.” Reuters
Goldman Sachs NYSE:GS reported Wednesday that total hedge-fund holdings in its broad AI basket dropped to their lowest level of 2026. The index features companies such as AMD and Nvidia.
On Thursday, July 23, the next major catalyst for the company is set to take place as Chief Executive Lisa Su hosts AMD’s Advancing AI event in San Francisco. Investors are expected to be looking for signs of real-world deployment at the event.
Risks: Comparisons of trailing P/E ratios may be misleading due to differences in business mixes. A swift chip sector rebound could swiftly close Thursday’s relative gap.
Robust demand continues. AMD must now translate its current valuation into profits.
