Advanced Micro Devices slipped this week as semiconductor stocks sold off after Broadcom's quarterly report fell short of investor expectations, dragging the Nasdaq 100 component lower with the rest of the chip group. AMD had reached an all-time high in early June, but the move down came with no company-specific news.
The pullback landed just as investors were revisiting how much momentum had already been priced into AI-linked chip makers. Broadcom's report lacked the wow factor traders had wanted, and the sell-off spread from Nvidia on down, leaving little shelter for a stock that had been riding a powerful run into the summer.
That run was built on numbers that still look strong. AMD said first-quarter revenue rose 38% year over year to $10.3 billion, faster than the 34% growth it posted in the fourth quarter of 2025. Data center revenue jumped 57% to $5.8 billion, up from 39% growth in the prior quarter, and that business now makes up more than half of total revenue. Lisa Su called the results a clear inflection in AMD's growth trajectory and a structural shift in the business.
Even so, the stock has not escaped the pressure that comes with a high bar. AMD trades at a price-to-earnings ratio north of 100 based on trailing non-GAAP earnings, and there are still concerns that margins could come under strain as the MI450 ramp scales, while the personal-computer and gaming business may face pressure in the back half of the year as memory and component costs rise.
AMD's next quarter will be the next real test. The company guided for about $11.2 billion in revenue, or roughly 46% year-over-year growth, and said its next-generation Instinct MI450 accelerators and Helios rack systems should begin ramping in the second half of the year. Meta Platforms has also agreed to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first wave built on custom MI450 silicon, though how much of that plan materializes and on what schedule remains the key question hanging over the story.
