What Happened?
Shares of computer processor maker AMD (NASDAQ: AMD) fell 3.8% in the morning session after the company was impacted by disappointing earnings from cloud company Oracle and a recent U.S. policy shift benefiting its competitor, Nvidia.
Weak revenue and guidance from Oracle, a major AMD supporter, sparked concerns about a slowdown in enterprise spending on artificial intelligence. The results signaled that the era of spending on AI at any cost might be pausing, prompting fears that companies with tightening budgets would stick with the market standard, Nvidia, instead of experimenting with alternatives like AMD. Adding to the pressure, the White House recently authorized Nvidia to ship certain advanced chips to China. This decision effectively removed a large market opportunity that AMD had expected to fill with its own chips designed to comply with previous restrictions.
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What Is The Market Telling Us
AMD’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.2% on the news that positive news emerged on multiple fronts, including leaked benchmarks for a new high-performance CPU and clarification from its CEO regarding AI chip shipments to China. Alleged benchmarks for the upcoming Ryzen 7 9850X3D CPU appeared, showcasing a potential clock speed increase to 5.6 GHz, which pointed to a major performance bump. In separate news, CEO Lisa Su stated that the company had licenses to ship some of its MI 308 AI chips to China and was prepared to pay a 15% tax on those sales. This provided clarity on the company's ability to operate in a key market. Additionally, reports indicated that memory module prices for AMD's latest Radeon graphics cards had risen, which was expected to trickle down to retail and potentially boost revenue.
AMD is up 77.8% since the beginning of the year, but at $214.50 per share, it is still trading 18.9% below its 52-week high of $264.33 from October 2025. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $2,340.
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