Why did AMD fall about 17% today?

The AMD stock price dropped after AMD earnings and Q1 revenue guidance fell short of aggressive AI hopes. Q4 included unexpected China shipments, which may not repeat. Analysts also highlighted supply and memory constraints. Together, these factors led investors to reset near‑term expectations, driving a sharp one‑day decline despite longer‑term AI opportunities.

Is the AI chip demand thesis broken for AMD?

No. Demand from cloud and enterprise remains strong, and AMD pointed to multi‑gigawatt opportunities. The issue is timing and supply, not interest. Investors need clearer delivery schedules, memory availability, and repeat orders. If those improve through 2026, revenue durability should follow, though near‑term volatility can remain high as expectations adjust.

What should Canadian investors watch next?

Track updates to Q1 revenue guidance, MI300 supply ramps, and memory availability. Watch hyperscaler order disclosures and data centre revenue mix in upcoming updates. Also monitor margins and free cash flow. Since many Canadians buy in USD, consider FX when reviewing returns, as currency moves can add noise to performance in CAD.

Is AMD expensive after the pullback?

AMD trades near a 76x TTM P/E, which is still a premium that assumes fast AI growth. Liquidity and cash flow are solid, but valuation now depends on delivery of accelerators and large orders. If execution improves, the multiple can hold. If not, further compression is possible despite healthy long‑term demand.

Global Market Insights

AMD Stock Today: February 5 – 17% Slide, Worst Since 2018 on AI Reset

ByDanny Kontos February 5, 2026February 5, 2026

The AMD stock price fell about 17% today, its worst single‑day drop since 2018, after AMD earnings and Q1 revenue guidance cooled lofty AI chip demand hopes. Advanced Micro Devices (AMD) beat on Q4, but part of the beat came from unexpected China shipments. Guidance topped LSEG consensus yet failed to satisfy aggressive expectations around accelerators. For Canadian investors, this reset highlights valuation risk, supply constraints, and the timing of large data centre deals. We break down what changed, why it matters, and what to watch next.