Advanced Micro Devices (NASDAQ:AMD), which designs and produces CPUs and GPUs for PCs, servers, and gaming consoles, closed at $200.19, down 17.31%. The stock dropped after a strong fiscal Q4 2025 beat was overshadowed by softer-than-hoped fiscal Q1 2026 sales guidance and profitability concerns, and investors are watching how quickly AMD’s AI data center growth can scale against Nvidia.
The company’s trading volume reached 104.9 million shares, which is 157% above compared with its three-month average of 40.8 million shares. Advanced Micro Devices went public in 1980 and has grown 6255% since its IPO.
How the markets moved today
The S&P 500 (SNPINDEX: ^GSPC) slipped 0.51% to 6,882, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 1.51% to 22,905 as tech shares broadly weakened. Among semiconductor peers, Intel (NASDAQ:INTC) closed at $48.6 (-1.32%) and Nvidia (NASDAQ:NVDA) finished at $174.19 (-3.41%), declining less than AMD’s larger drop.
What this means for investors
Advanced Micro Devices shares fell sharply after a solid fiscal fourth-quarter beat was overshadowed by softer-than-expected guidance for the start of fiscal 2026. Management projected first-quarter revenue of about $9.8 billion, which fell short of expectations, driven by AI momentum, and led investors to adjust near-term growth forecasts. CEO Lisa Su stated that China-related AI chip revenue will remain limited in the near term and noted that operating expenses are increasing as the company invests in next-generation accelerators.
Large customer commitments and key partnerships continue to anchor AMD’s longer-term AI opportunity. The focus now shifts to whether data center revenue can scale rapidly and profitably enough to close the gap with Nvidia, as investors seek clearer evidence that AI growth will drive sustained earnings in the coming quarters.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,111!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,521!*
Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 4, 2026.
Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.
