Why AMD stock is down: hot U.S. wholesale inflation and Nvidia slump weigh on Advanced Micro Devices

27 February 2026

New York, Feb 27, 2026, 10:37 (EST) — Trading during the regular session.

Advanced Micro Devices slipped roughly 1.6% to $200.43 during mid-morning trading.
Producer prices in the U.S. climbed 0.5% in January, overshooting expectations and muddying the outlook for rates.
Broadcom’s earnings are due March 4, while investors are also looking ahead to the U.S. jobs data scheduled for March 6.

Advanced Micro Devices (AMD.O) slipped 1.6% to $200.43 by mid-morning Friday, as chip stocks took another hit. AMD shares moved in a range from $198.01 to $201.89 earlier in the session.

Sticky inflation numbers are once again stirring up rate expectations, putting pressure on high-growth tech stocks. U.S. producer prices climbed 0.5% in January, outpacing forecasts for a 0.3% increase. Several components of the report figure into the Fed’s favored PCE inflation print arriving March 13.

Stocks slipped out of the gate after the data hit: the Nasdaq fell 1.15% at the open, while the S&P 500 dropped 0.76%, according to Reuters.

AMD dropped 3.41% Thursday, ending the day at $203.68. It was a tough session for chip and broader tech stocks.

Nvidia shares slipped Thursday, post-earnings, with traders shrugging off robust results to focus on doubts about the payoff from hefty AI infrastructure outlays. “The competitive picture is also shifting as companies like Meta diversify toward AMD,” noted eMarketer analyst Jacob Bourne. Reuters

AMD is still working through the impact of an AI deal it landed earlier this week: a five-year pact worth up to $60 billion in AI chip sales to Meta. The agreement hands the Facebook parent the right to pick up as much as 10% of AMD. “Meta is locking in supply, diversifying away from a single vendor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. AMD CEO Lisa Su called the deal “a big bet on AMD.” Reuters

According to a related SEC filing, Meta holds a warrant for as many as 160 million AMD shares at just $0.01 each, expiring Feb. 23, 2031. The document details vesting based on performance hurdles and lays out further conditions.

In a separate filing Thursday, Chief Technology Officer Mark Papermaster moved 206,606 shares into grantor retained annuity trusts—estate-planning vehicles—with no cash changing hands. These types of Form 4 disclosures often get noticed, even when they don’t reflect open-market sales.

The recent pullback is putting AMD’s valuation under the microscope again, just as the company pushes to expand its share in the data-center AI chip market. Barron’s highlighted comments from analyst Paul Meeks, who pointed to AMD’s richer multiple: the stock trades at roughly 28.4 times forward earnings, compared to Nvidia’s 23.7.

The Philadelphia Semiconductor Index slipped roughly 1.1% during the session, with chipmakers broadly under strain.

The script can change fast. Persistent inflation and rising yields could squeeze tech valuations even more—chip stocks, especially, tend to exaggerate the moves.

Next up: Broadcom is set to report first-quarter fiscal 2026 numbers after the bell on Wednesday, March 4. Wall Street’s watching closely for signs of where AI networking demand and hyperscaler budgets are headed.

Just two days out, markets will get their next big read: Friday’s U.S. jobs report, due March 6. A Reuters poll is pointing to a 60,000-job gain for February. “The U.S. equity market is sort of… trying to find the winners and losers of this new disruptive technology,” said John Velis, Americas macro strategist at BNY. Reuters

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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