ETFs to Buy as AMD Shares Slip After-Hours Despite Q3 Earnings Beat

Shares of Advanced Micro Devices (AMD) slipped 1% in the after-hours trading session yesterday (as reported by CNBC) despite surpassing analysts’ expectations for both top and bottom lines. This pullback was most likely triggered by e-commerce giant Amazon’s (AMZN) announcement in a securities filing of dissolving its stake in AMD in the third quarter.

The stock has been dropping even more since then, in the overnight trading session.

While this consistent share price slump might come as disappointing news for investors at the moment, those who are prudent may recognize this as an opportune moment to invest in AMD shares, considering its solid long-term growth potential, particularly in connection with the artificial intelligence (AI)-led technology boom. Notably, AMD is currently set to power America’s next-generation supercomputers at Oak Ridge National Labs, which will be the first dedicated U.S. AI factory for science.

However, direct investment in AMD stock carries the specific risks of unforeseen challenges, such as sudden shifts in global semiconductor export policies or major supply-chain disruptions unique to its fabrication and design process. These customized operational hurdles can cause sudden, sharp drops in AMD’s share value.

Therefore, for investors looking to capitalize on this recent dip without being fully exposed to the unique single-stock volatility and company-specific challenges that could severely impact AMD, a more prudent strategy could be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this chipmaker. This approach will allow investors to capture AMD's potential upside while mitigating company-specific risks that might arise from its specialized sector challenges or geopolitical factors.

But before diving straight into these ETFs, let us check AMD’s overall performance in the third quarter, in terms of other metrics.

A Brief Analysis of AMD’s Q3 Results

AMD’s third-quarter earnings beat the Zacks Consensus Estimate by 2.6%, while revenues topped the mark by 6%. On a year-over-year basis, its top line improved 36%, while its bottom line surged 60%. Broad based demand across AMD’s Data Center, AI, Server, and PC businesses, primarily drove growth in the reported quarter.

Segment-wise, the company’s Data Center as well as Client and Gaming business units delivered solid revenue growth of double-digit percentages, while the Embedded unit’s revenues declined a single-digit percentage.

The company ended September 2025, with cash and cash equivalents worth $4.81 billion, compared with $3.79 billion as of December 2024-end. Its free cash flow more than tripled, led by record EPYC, Ryzen and Instinct processor sales.

During the third quarter, the company launched ROCm 7 software, AMD’s most advanced and feature-rich release to date, which introduced seamless distributed inference, enhanced code portability across hardware and new enterprise tools that simplify the deployment and management of Instinct solutions.

Moreover, AMD boosted its x86 embedded portfolio with two key additions. The EPYC Embedded 4005 series targets network security and entry-level industrial edge servers, offering performance and cost optimization. Meanwhile, the Ryzen Embedded 9000 processors deliver exceptional performance-per-watt and stability for industrial PCs and machine vision applications.

Looking ahead, AMD remains on track to launch its next-generation 2-nanometer Venice processors, next-gen MI400 Series accelerators and Helios rack-scale solutions next year. Moreover, as Oracle (ORCL) agreed to be a lead launch partner for the MI450 Series, it is expected to deploy tens of thousands of MI450 GPUs across Oracle Cloud Infrastructure, beginning 2026 and expanding through 2027 and beyond.

AMD-Heavy ETFs to Buy

iShares Semiconductor ETF (SOXX)

This fund, with net assets worth $16.11 billion, offers exposure to 30 U.S. companies that design, manufacture, and distribute semiconductors. Of these, AMD carries the first spot, holding 9.97% of the fund.

SOXX has gained 38.3% year to date. This fund charges 34 basis points (bps) as fees. Its volume is good at an average of 7.44 million shares a day. This fund holds a Zacks ETF Rank #2 (Buy).

Invesco PHLX Semiconductor ETF (SOXQ)

This fund, with net asset value (NAV) worth $54.95 per share, provides exposure to the 30 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, AMD carries the second spot, holding 9.87% of the fund.

SOXQ has soared 40.9% year to date. This fund charges 19 bps as fees. Its volume is at an average of 626,643 shares a day. This fund holds a Zacks ETF Rank #2.

Invesco AI and Next Gen Software ETF (IGPT)

This fund, with NAV worth $59.22 per share, offers exposure to 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the first spot, holding 10.56% of the fund.

IGPT has gained 31% year to date. This fund charges 56 bps as fees. This fund holds a Zacks ETF Rank #2.

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This article originally published on Zacks Investment Research (zacks.com).

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