New York, February 4, 2026, 10:44 (EST) — Regular session
- Shares of AMD plunged early in New York trading after the chipmaker warned of a sequential drop in quarterly revenue.
- Investors zeroed in on how quickly AMD’s data-center AI business is growing and the scale of chip sales tied to China.
- All eyes shift to Nvidia’s earnings on Feb. 25 for clues on AI hardware demand.
Shares of Advanced Micro Devices tumbled 14.2% to $207.81 Wednesday morning, marking their biggest single-day drop in months. The stock dipped as low as $206 and was last down $34.30 from Tuesday’s close.
This matters because AMD stands out as one of the rare chipmakers investors see as a genuine rival to Nvidia in the AI processor market for data centers. After a strong stretch, the stock has shown little tolerance for setbacks.
AMD on Tuesday evening forecast first-quarter revenue around $9.8 billion, plus or minus $300 million, marking a 5% drop from the previous quarter. The guidance factors in about $100 million in Instinct MI308 sales to China. Shares dropped roughly 8% in after-hours trading. Some investors focused on margins—AMD expects an adjusted gross margin of 55%, well below Nvidia’s mid-70% target for fiscal 2027. “The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for,” said Bob O’Donnell, president of TECHnalysis Research. Reuters
AMD posted fourth-quarter revenue of $10.27 billion, marking a 34% jump from the same period last year, with adjusted earnings hitting $1.53 per share. CEO Lisa Su described the start of 2026 as having “strong momentum.” CFO Jean Hu added the company expects to “deliver profitable growth at scale” while ramping up investments. Advanced Micro Devices, Inc.
The company reported a record $5.4 billion in quarterly revenue from its data center segment, fueled by strong sales of EPYC server processors and rising Instinct GPU shipments. AMD noted that fourth-quarter Instinct MI308 revenue to China hit around $390 million, boosted by about $360 million from the release of previously reserved MI308 inventory and associated charges.
On Tuesday, AMD submitted an 8-K that included its earnings release and a presentation of results, according to the filing. The company disclosed both GAAP and non-GAAP figures, with the latter excluding specific items for an adjusted view.
AMD faced selling pressure amid a wider tech sector pullback linked to AI developments. Investors told Reuters that Anthropic’s latest AI offerings have intensified declines in data analytics and software shares, adding volatility to parts of the market.
Super Micro Computer sent a different message, lifting its fiscal 2026 revenue forecast to at least $40 billion. The company pointed to robust demand for AI-optimized servers and highlighted close partnerships with Nvidia and AMD to deliver integrated systems.
Bernstein analyst Stacy Rasgon noted that AMD’s near-term AI figures don’t show much change once China sales are excluded, calling the results “inline” without that China-driven lift. Reuters
Risks loom on both fronts. Export limits on advanced chips to China keep shifting, and stricter rules could cut into a revenue source that bolstered the fourth quarter. At the same time, fierce competition in AI accelerators raises the stakes for margins and growth.
Traders are eyeing Nvidia’s quarterly report on Feb. 25, a crucial gauge for AI accelerator demand and chip sector profits. AMD’s spotlight remains on whether management can expand its major customer base and keep the server ramp for the second half on course.
