AMD drops as broader chip selloff accelerates after Broadcom outlook and hotter jobs data

AMD shares slid in Friday’s morning session as a wider pullback in semiconductor stocks gathered momentum, dealers said, with the move linked to two market catalysts rather than any new, company-specific negative news.

A key driver was sentiment around AI-chip demand after Broadcom (AVGO) reported results and, in guidance, pointed to next-quarter AI semiconductor revenue of about $16 billion. According to, that figure was below the more aggressive consensus expectations of roughly $17.2 billion, triggering a broad selloff across high-multiple chip names, including AMD.

At the same time, investors digested a stronger-than-expected May employment report. Axios reported the Nasdaq’s worst day in about a year after the jobs data pushed Treasury yields higher, a dynamic that tends to pressure growth stocks priced on long-dated earnings assumptions. also tied the pressure on “high-multiple growth stocks” to the prospect of a more cautious Federal Reserve posture on rate cuts.

The selloff spread beyond AMD itself. Axios said the PHLX Semiconductor Sector index dropped more than 10% and listed other major declines among chip and AI-linked equities, including Marvell Technology, Micron Technology, Intel, and Nvidia.

AMD has argued its AI infrastructure business is strengthening. In its investor relations materials for the first quarter of 2026, AMD said it delivered an “outstanding first quarter,” with Data Center now the primary driver of revenue and earnings growth, and added that customer engagement around its MI450-series accelerators and Helios rack-scale platform was strengthening.

Even with that backdrop, reported that analysts and trading activity added to the downside pressure, including a Zacks downgrade to “hold” citing what it described as extreme valuation, and continuing position trimming by ARK Invest alongside insider selling activity.

Still, investors should note what was not disclosed in the immediate catalyst cycle: AMD did not issue a new earnings release or guidance update in the same window. The available reporting attributes the stock move primarily to peer results and AI guidance sentiment, plus macro effects from the jobs report and resulting yield pressure.

Going forward, market participants are likely to focus on whether the sector’s selloff stabilizes and whether AMD can translate its recently highlighted Data Center demand trends into forward execution. Attention will also likely turn to the next wave of AI-chip disclosures from major suppliers, since peer guidance has already shown it can swing sentiment quickly.