What Happened?
Shares of computer processor maker AMD (NASDAQ:AMD) fell 6.5% in the morning session after the AVGO earnings overhang and the stronger-than-expected jobs report combined to drive one of the broadest global chip selloff of the year.
The damage spread globally: South Korea’s Kospi fell 5.5%, with Samsung down 6.4% and SK Hynix nearly 10%. European names followed: ASML fell 3.8% and Infineon lost more than 6%. Broadcom’s guidance miss reset expectations for the pace of hyperscaler AI chip spending, removing the sector’s most visible growth catalyst.
The 172,000-payroll print then eliminated near-term rate cut hopes and introduced rate hike risk by year end per CME FedWatch. Semiconductor valuations, built on aggressive multi-year earnings assumptions, are acutely sensitive to these discount rate movements.
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What Is The Market Telling Us
AMD’s shares are extremely volatile and have had 39 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 14 days ago when the stock gained 4.7% on the news that the company confirmed it has started ramping up production of its next-generation 2-nanometer ‘Venice’ CPUs and announced plans to invest over $10 billion in Taiwan’s AI supply chain, prompting bullish analyst upgrades.
The new chips are being built using an advanced manufacturing process from partner TSMC. This development, along with CEO Lisa Su’s comments on stronger-than-expected demand for AI infrastructure, fueled investor optimism.
In response, several analysts raised their price targets, with Bank of America increasing its target to $500, citing a projected $1.7 trillion AI data-center market by 2030. The positive news adds to recent momentum, as reports showed AMD gained server CPU market share in the first quarter of 2026 while a key competitor’s share decreased.
AMD is up 116% since the beginning of the year, but at $483.04 per share, it is still trading 11% below its 52-week high of $542.52 from June 2026. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $5,938.
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