AMD(US:AMD) Yahoo Finance·2025-11-07 19:22Core Viewpoint - Advanced Micro Devices (AMD) stock is experiencing a decline due to investor concerns over overheated valuations in the artificial intelligence (AI) sector, despite a significant year-to-date increase of 89% [2][4]. Group 1: Stock Performance - AMD's share price fell by 4.2% as of 2 p.m. ET on Friday, while the S&P 500 and Nasdaq Composite were down 0.7% and 1.3%, respectively [1]. - The stock has seen a substantial increase of 89% in 2025's trading, indicating strong performance despite recent pullbacks [2]. Group 2: Market Sentiment - The decline in AMD's stock is attributed to a broader sell-off in tech stocks, driven by concerns over potential volatility in tech sector valuations and a recent report indicating a drop in U.S. consumer confidence to its lowest levels since 2022 [4][8]. - Investor caution regarding AI stocks is contributing to the downward pressure on AMD's share price [8]. Group 3: Future Outlook - For the current quarter, AMD's midpoint sales target is approximately $9.6 billion, forecasting a year-over-year revenue growth of about 25% [5]. - The company aims for a non-GAAP gross margin of approximately 54.5%, with recent contract wins from companies like Amazon and OpenAI expected to drive sales growth [5]. - There are indications that AMD may begin to capture market share from Nvidia in the AI processor space, presenting a potential opportunity for risk-tolerant investors [6].