Why AMD Stock Is Plummeting Today

3 weeks ago 12

Keith Noonan, The Motley Fool

Thu, November 6, 2025 astatine 2:51 PM CST 3 min read

AMD banal is falling Thursday successful effect to a study showing U.S. employers laid disconnected much than 150,000 employees past month.
A softening U.S. occupation marketplace could proceed to dent bullish momentum for stocks.
Investors are besides becoming much cautious astir growth-dependent valuations for artificial quality (AI) stocks.
10 stocks we similar amended than Advanced Micro Devices ›

Advanced Micro Devices (NASDAQ: AMD) banal is losing crushed Thursday. The semiconductor company's stock terms was down 5.6% arsenic of 3 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) declined 0.8%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 1.3% successful the session.

AMD banal is sinking amid a caller circular of bearish macroeconomic data. Concerns that valuations for artificial quality (AI) companies could beryllium overly elevated are besides factoring into the pullback.

Challenger, Gray & Christmas published caller jobs information this greeting that showed U.S. employers had chopped much than 150,000 jobs successful October. The employment reductions were driven by cost-cutting initiatives and ratio gains spurred by AI. The jobs chopped marked the biggest monthly employment simplification successful implicit 20 years.

While AI-driven ratio improvements could suggest immoderate tailwinds for AMD and different artificial quality players, sell-offs for the broader marketplace contiguous item concerns astir valuations for artificial quality companies and the broader market.

AMD has precocious been scoring immoderate important wins successful the AI space, securing contracts with large tech players including OpenAI and Amazon. On the different hand, valuation dynamics don't beryllium successful a vacuum -- and bearish momentum has been picking up steam precocious crossed the market.

On the heels of unthinkable rallies this year, investors and analysts person been adopting much cautious positioning erstwhile it comes to AI stocks. Despite a important pullback today, AMD banal has inactive managed to treble crossed 2025's trading. With signs that macroeconomic pressures could intensify and broader concerns astir the valuation multiples being applied to AI stocks, AMD's stock terms could spot much volatility successful the adjacent term.

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