New York, June 5, 2026, 14:02 (EDT)
- AMD recently traded down about 9.3% at $474.34 in Friday afternoon dealings.
- The drop came as chip stocks sold off and stronger U.S. payrolls pushed rate expectations higher.
- Broadcom’s post-results slide added pressure across AI-linked semiconductor names.
Advanced Micro Devices shares fell sharply on Friday, caught in a broad chip-stock retreat after a stronger-than-expected U.S. jobs report raised doubts about the staying power of this year’s AI-led rally. AMD recently traded at $474.34, down $48.86 from the previous close, after opening at $500 and touching an intraday low of $470.79. Volume topped 25 million shares.
The selloff matters because AMD has become one of Wall Street’s main bets on the AI trade — the wager that companies selling chips and related hardware for artificial intelligence will keep posting rapid growth. Reuters reported that the Nasdaq Composite was down 2.37% late Friday morning, while the Philadelphia semiconductor index, a benchmark for chip shares, shed 5%. Nvidia lost 2.5% in that same snapshot.
The macro trigger was plain enough. The U.S. Bureau of Labor Statistics said nonfarm payrolls — jobs outside farms and a few other categories — rose by 172,000 in May, while the unemployment rate held at 4.3%. That was a much stronger labor print than traders wanted to see, because a hot jobs market can keep inflation pressure alive.
Treasury yields, the returns investors demand to hold U.S. government debt, jumped after the report. Higher yields tend to hit growth shares because they make future earnings worth less in today’s money. Charlie Ripley, senior investment strategist for Allianz Investment Management, told Reuters the move gave investors reason to take “chips off the table.” Reuters
Broadcom added the sector-specific jolt. The company reported fiscal second-quarter revenue of $22.19 billion, up 48% from a year earlier, and said AI semiconductor revenue rose 143% to $10.8 billion. Chief Executive Hock Tan said “the momentum continues” and forecast AI semiconductor revenue of $16 billion in the third quarter, but the stock still sold off as investors judged the outlook against stretched expectations. Broadcom Inc.
That read-through hit AMD even though the company’s recent news flow has stayed focused on longer-term compute demand. On June 3, OQC, JPMorganChase and AMD announced a London quantum-AI research collaboration, with AMD set to provide high-performance computing resources. AMD Chief Technology Officer Mark Papermaster said the work would require “tightly integrated compute platforms” across quantum systems, AI infrastructure and classical computing. AMD
AMD’s own most recent quarterly report remains the backdrop for the stock. The company posted first-quarter revenue of $10.3 billion, up 38% from a year earlier, and said data-center revenue rose 57% to $5.8 billion on demand for EPYC server processors and Instinct GPUs. CEO Lisa Su said the quarter was driven by “accelerating demand for AI infrastructure.” Advanced Micro Devices, Inc.
The pressure was not confined to AMD. Nvidia recently traded down 4.9%, Intel fell 8.7%, and the iShares Semiconductor ETF, an exchange-traded fund that tracks a basket of chip stocks, sank 7.8%. That made Friday look less like an AMD-only repricing and more like a fast sector rotation after a heavy run.
But the move can cut both ways. If bond yields settle and cloud customers keep ordering AI accelerators — chips built to speed up AI workloads — dip buyers could return quickly. The downside case is less forgiving: higher rates, profit-taking in Broadcom and Nvidia, or any sign that AMD’s data-center ramp is slower than expected could force investors to pay less for future growth.
The next company-set marker is AMD’s “Advancing AI 2026” event on July 23 in San Francisco, where it has said executives, customers and partners will discuss building and scaling AI systems powered by AMD. Until then, the stock is likely to trade off two things that are only partly in AMD’s control: bond yields and confidence in the broader AI chip cycle. Advanced Micro Devices, Inc.
