NEW YORK, July 27, 2026, 13:07 EDT
- AMD shares fell 7.0% to $485.66 as U.S. markets stayed open.
- An initial estimate placed the market value decline at roughly $60 billion.
- AMD’s projected sales multiple was 35% higher than that of Nvidia Corp. NASDAQ:NVDA.
Shares of Advanced Micro Devices Inc. NASDAQ:AMD dropped 7.0% to $485.66 in late trading on Monday, with U.S. markets still open.
The decline reduced its market value to roughly $801 billion. An initial estimate placed the loss at nearly $60 billion.
The development highlighted a significant timing mismatch. A number of major Helios launches are scheduled for late 2026 or 2027.
Still, AMD traded at a forward sales multiple of 17.9, which was 35% higher than Nvidia’s 13.2 times.
| Company | Price | Intraday move | Market value | Rough forward sales multiple |
|---|---|---|---|---|
| Advanced Micro Devices Inc. NASDAQ:AMD | $485.66 | -7.0% | $801 billion | 17.9x |
| Nvidia Corp. NASDAQ:NVDA | $197.03 | -4.7% | $4.81 trillion | 13.2x |
Market capitalisation is calculated by dividing by four times the midpoint of each company’s most recent quarterly revenue forecast. AMD projected $11.2 billion. Nvidia projected $91 billion. The estimate is preliminary.
The measure does not constitute a profit forecast. Margins, cash, debt and product mix are excluded.
AMD declined more sharply than Nvidia, which was down 4.7%. The PHLX Semiconductor Index (INDEXNASDAQ:SOX) dropped 3.9% earlier.
The index was on track for its third consecutive decline, down 22.4% from its record closing high on June 22.
The decline affected the entire sector rather than being limited to AMD. CXMT Corp. SHA:688825 jumped on its first trading day in Shanghai, renewing worries about competition from Chinese semiconductor firms.
AMD’s upcoming Helios launch plan kicks off with Microsoft Corp. NASDAQ:MSFT. Deliveries for Microsoft and additional clients are scheduled to commence in the latter half of 2026.
OpenAI anticipates Helios will be operational in the fourth quarter. Anthropic projects its initial gigawatt to launch during the first half of 2027.
Anthropic’s deal spans as much as two gigawatts of AMD hardware. Additionally, AMD has pledged up to $5 billion for an equity stake.
Reuters reported that server sales might climb to tens of billions of dollars. The investment is still linked to deployment targets.
Chief Executive Lisa Su stated the collaboration will “establish Helios as a major platform.” Advanced Micro Devices, Inc.
eMarketer analyst Jacob Bourne noted that every new contract “deepens AMD’s credibility as the number-two to Nvidia.” The remark underlines the broader strategic argument. The key question is still when revenue will be realized. Reuters
Advanced Micro Devices, Inc. is scheduled to release its second-quarter earnings after markets close on August 4, marking the next significant challenge for the company.
The company has forecast revenue of $11.2 billion, give or take $300 million. AMD projects a non-GAAP gross margin of roughly 56%.
Data-center revenue increased 57% in the first quarter, reaching $5.8 billion. This segment must sustain the company until larger Helios deployments occur.
Risks: Helios faces reliance on software development, as well as timing from suppliers and customers. Export regulations and financing tied to milestones might defer revenue outside existing projections.
Customer gains are genuine. The current valuation now requires quicker evidence that these commitments translate into revenue and margin.
Related articles: NASDAQ:NVDA
