Advanced Micro Devices, Inc.

341.54

-5.27%

NVDA

INTC

AVGO

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Both sell chips for data centers and AI systems, and both go after the same cloud companies that are spending heavily on faster servers. They also overlap in gaming and PC graphics chips, so they fight for the same large customer budgets in more than one area.

AMD drops 5% as downgrade and pre-earnings jitters hit an overextended stock

As of May 4, 2026

For informational purposes only.

Summary

AMD fell about 5% today to roughly $342 on heavier trading, as an HSBC downgrade and pre-earnings nerves hit a stock that has run up roughly 70% since March. HSBC’s message wasn’t “bad company” but “great story, maybe too expensive,” especially with possible production limits on how fast AI and data center sales can grow near term. At the same time, fresh partnership news with Zyphra and Riot Platforms underlined that AMD’s AI and data center demand remains strong, even if the stock price has gotten ahead of itself. The real test comes with tomorrow’s earnings: strong data center growth, confident guidance, and reassuring comments on supply would support the current lofty price, while any disappointment or cautious tone could extend today’s pullback.

AMD had a rough day on paper, but it was more about nerves than disaster. The stock fell about 5% to roughly $342 after starting the morning near $360, on heavier‑than‑usual trading. That tells you a lot of people were actively reacting today, not just casually watching.

Under the surface, the bigger picture is that AMD is still in a strong uptrend — the shares are up sharply over the last month and year — but they’ve reached “nosebleed altitude.” At these levels, even small worries can trigger a noticeable drop.

What drove today’s move?

1. HSBC downgrade: “Great story, maybe too expensive”

The main hit came from HSBC cutting its rating on AMD from “Buy” to “Hold.” In plain terms, they’re not saying AMD is a bad company; they’re saying the stock price already reflects a lot of good news.

Their two key worries:

Valuation: After a ~70% run since March and huge gains over 12 months, they think a lot of the AI excitement is already built into the price.
Production limits: Even if demand for AMD’s AI and data center chips is strong, supply could cap how fast revenue can actually grow in the near term.

Many short‑term traders used that as an excuse to lock in profits, which is how you get a quick 5–6% drop in a single day.

2. Tomorrow’s earnings: the bar is very high

AMD reports quarterly results after the close on Tuesday. The focus is on data center and AI chips (EPYC CPUs and Instinct GPUs) — that’s where the real growth and profit are.