New York, Feb 6, 2026, 09:07 EST — Premarket
Advanced Micro Devices (AMD.O) shares climbed roughly 4% in premarket on Friday, attempting to recover from a sharp two-day drop that slashed over 20% off its market cap. The stock was seen near $200 after closing Thursday at $192.50. 1
The rebound arrives amid a fragile phase for the AI sector, where investors are quick to punish guidance that doesn’t meet lofty expectations. On Wednesday, AMD plunged 17%, marking one of the steepest declines among major tech players, dragged down by a wider sell-off in chip and software stocks. 2
Tensions flared again from China. Intel and AMD have informed their Chinese clients about supply shortfalls for server CPUs, with some delivery times now extending for months, sources familiar with the situation told Reuters. 3
AMD forecasted first-quarter revenue around $9.8 billion, with a $300 million margin of error, marking about a 5% drop from the previous quarter. The company also projected a non-GAAP gross margin near 55%. (Gross margin reflects revenue minus production costs; non-GAAP excludes certain items.) CEO Lisa Su described 2025 as “a defining year” and said AMD is heading into 2026 with “strong momentum.” 4
The forecast thrust AMD back into the AI chip competition, where Nvidia leads and cloud giants keep driving custom designs. Bernstein analyst Stacy Rasgon described the quarter as “not all that much beyond ‘inline’” once you remove the China boost, noting that near-term AI figures “are not really inflecting.” 5
A filing this week revealed AMD still has $9.4 billion left on its $14 billion stock buyback plan as of Dec. 27, 2025. The annual report also highlighted uncertainty over export licenses for MI308 shipments to China and mentioned that U.S. officials have talked about taking 15% of revenue from licensed MI308 sales, though no regulations have been finalized. 6
Brokerage outlooks are shifting post-earnings. UBS trimmed its AMD price target to $310 from $330 but kept a Buy rating. The firm pointed to strong server CPU demand, tempered by a softer gaming forecast for 2026 and noted that operating expenses “tend to always surprise to the upside.” 7
The broader environment continues to dominate. Markets remain jittery over the expenses and possible upheaval tied to the AI surge. Investors are swift to sell at any sign of a misstep. 8
Coming up next: the University of Michigan’s preliminary consumer sentiment for February, due at 10 a.m. ET. Then, on Feb. 11, the rescheduled U.S. January jobs report will drop. AMD traders remain alert for signs of ongoing China server CPU supply issues and any changes in export licensing policies. 9
