Why did AMD drop about 17% after earnings?

Q1 revenue guidance around $9.8 billion came in below bullish AI expectations, and Q4 was helped by selling previously written‑down inventory to China. That mix raised quality questions and triggered a fast de-rating from a rich multiple. Markets wanted faster AI revenue and margin acceleration than management guided.

Is the AI demand story broken for AMD?

No. Management still flagged strong data centre momentum and sizeable AI orders from major cloud customers. The issue is pace, not direction. Investors want clearer timelines for accelerator shipments, software readiness, and margin lift. Execution on those areas will matter more than one quarter of cautious guidance.

What should UK investors consider before buying AMD?

US listing means USD exposure, so check FX conversion costs and spreads. Use ISA or SIPP where suitable. There is no UK Stamp Duty on US stocks. AMD does not pay a dividend, so returns rely on growth. Build positions in stages and track updates on AI revenue, margins, and export exposure.

What price levels are important after the selloff?

The 50-day average near 221.95 is first resistance. The 200-day around 177.33 is key support. Price near the lower Bollinger Band suggests possible mean reversion if selling slows. A steady close above 205 to 210 would help stabilize sentiment. Always align entries with risk limits and position size.

Global Market Insights

AMD Stock Today: February 5 – 17% Slide on Soft AI Guide, China Boost

ByDanny Kontos February 5, 2026February 5, 2026

AMD stock fell about 17% on 5 February after Q4 results outpaced estimates but guidance missed lofty AI hopes. The company reported a revenue beat helped by sales of previously written‑down inventory to China, while Q1 revenue guidance near $9.8 billion disappointed momentum traders. For UK investors, the move resets expectations on AI chip demand and margins. We break down what drove the drop, how the outlook stacks up, and the levels that matter if you track AMD stock from the UK.