Shares of Advanced Micro Devices (AMD) rebounded sharply after Thursday’s plunge. As the initial shock faded, investors turned their attention back to the company’s strong financial results and sustained demand for data center chips.
Record revenue brings buyers back
On Thursday, November 5, 2026, AMD shares fell 17.3%* amid concerns about possible regulation of artificial intelligence. By midday in the next trading session, the stock had recovered some of those losses, rising nearly 9.9%* as institutional investors resumed buying. The results released on November 3 helped restore confidence. Third-quarter revenue rose 45% year over year to a record $13.4 billion. The data center segment led the growth, with revenue nearly doubling to $8.5 billion. AMD’s EPYC server processors and Instinct AI accelerators continued to gain market share.
The long-term outlook
Recent volatility shows how sensitive AMD’s share price is to news about AI regulation. Even after those swings, the stock is trading roughly 200%* higher than it was five years ago. In assessing AMD’s prospects, analysts are looking past the short-term sell-off and focusing on steady demand for its server processors.
Five-year share price performance of Advanced Micro Devices [USD]*
(ZNBC)
Morgan Stanley raises its estimates
Strong growth in server processor sales prompted Morgan Stanley to raise its price target for AMD and its revenue and earnings per share estimates for fiscal 2027. Some of the more bullish analyst targets stood at around $608 per share, reflecting expectations that AI would drive further growth. Analysts at Jefferies attributed Thursday’s sell-off largely to the market’s reaction to talk of regulation. In their view, AMD’s underlying business had changed little.
Can AMD meet demand?
AMD’s performance in the coming months will depend on how much it can supply. When the company reported its results, CEO Lisa Su said demand was already outstripping supply. Investors will be watching how much of that demand AMD can meet by year-end. The company expects fourth-quarter revenue of around $17 billion, which would represent year-over-year growth of approximately 66%.
* Past performance is no guarantee of future results.
