TLDRs:
- AMD shares fell 6.1% as MI450 AI accelerator delay rumors sparked concern.
- Market watchers focus on Feb. 3 earnings for production updates.
- Broader chip sell-off highlights investor caution in high-growth technology stocks.
- Analysts remain bullish, citing long-term AI chip demand and production ramp potential.
Advanced Micro Devices (NASDAQ: AMD) saw its stock drop 6.1% on Friday, closing at $236.73 after investors reacted to speculation about delays in its MI450 AI accelerator rollout.
The MI450, a critical chip for AI workloads powering clients like OpenAI and Oracle, has become a focal point for market sentiment as AMD approaches its fiscal fourth-quarter earnings release on February 3. Roughly 40 million shares changed hands during the session, reflecting heightened volatility.
Reports suggesting a delay in the MI450 series fueled the sell-off, coming just days before AMD’s earnings call. Analysts note that while AI accelerators still represent a smaller portion of AMD’s total revenue, the market now heavily weighs expectations around this segment. Any perceived hiccup can trigger outsized reactions from investors, particularly in a tech sector increasingly sensitive to growth uncertainty.
Advanced Micro Devices, Inc., AMD
Earnings and Guidance in Spotlight
All eyes are now on Tuesday, when AMD will report its full-year 2025 and fourth-quarter results after market close, followed by a 5 p.m. EST conference call. Investors are expected to focus less on the raw earnings numbers and more on guidance regarding MI450 production timelines and demand for AI-focused data-center products.
CTO Mark Papermaster’s upcoming presentation at a Morgan Stanley technology conference in March is also expected to shed light on the company’s AI chip strategy. Analysts suggest that management’s tone during the earnings call could heavily influence AMD’s short-term stock trajectory, as market participants weigh production ramp progress against lingering uncertainty.
Broader Chip Market Faces Pressure
AMD’s drop mirrored broader weakness in the chip sector, with KLA falling over 15% and Western Digital declining more than 11%. The Nasdaq 100 slipped 1.28%, while the S&P 500 dropped 0.43%. Rising Treasury yields, coupled with news that Donald Trump nominated Kevin Warsh for Federal Reserve chair and stronger-than-expected producer-price figures, contributed to the risk-off sentiment.
The sell-off underscores how quickly high-multiple tech stocks can react to news that raises doubts about growth trajectories. Investors are also watching for broader macroeconomic signals, including the U.S. January jobs report, which could influence both interest rate expectations and appetite for AI-focused equities.
Analysts Maintain Long-Term Confidence
While rumors of MI450 delays caused immediate market turbulence, some analysts remain optimistic. Wells Fargo’s Aaron Rakers noted that claims of a production delay are disputed, and he expects AMD to provide evidence of ramping production in the second half of 2026. The firm retains an Overweight rating on AMD with a $345 price target, emphasizing the long-term potential of AI accelerators in data centers.
Investors now face a delicate balancing act, monitoring earnings guidance closely, gauging demand in the AI and data-center segments, and keeping an eye on the broader tech market’s response to economic indicators. For AMD, the next week promises to set the tone for how the stock navigates both AI optimism and near-term uncertainty.
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