AMD Stock Seen Rebounding After Earnings Dip

Chip maker's long-term growth prospects remain strong despite slight Q1 guidance miss.

Published on Feb. 10, 2026

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Advanced Micro Devices (AMD) stock fell sharply after the company's latest earnings report, as investors reacted negatively to slightly lower than expected Q1 revenue guidance. However, analysts believe the sell-off was an overreaction, noting AMD's strong 2025 results, continued robust growth projections, and optimism around its new MI450 AI accelerator chip.

Why it matters

AMD is a bellwether for the semiconductor industry, and its stock performance is closely watched by investors. The company's ability to quickly recover from this earnings-related dip could signal broader resilience in the chip market.

The details

For 2025, AMD reported a 34% jump in revenue to $34.6 billion, driven by strength in its data center, client, and gaming segments. Net income more than doubled to $4.3 billion. However, the company's Q1 2026 revenue guidance of $9.5 billion to $10.1 billion fell short of some analysts' expectations, leading to a 17% single-day stock plunge. But with a forward P/E ratio of 32 and projected 34-37% revenue growth over the next two years, many believe the sell-off was overdone. AMD also expects its new MI450 AI chip to compete strongly against Nvidia's offerings.

  • AMD reported Q4 2025 and full-year 2025 results on February 4, 2026.
  • The company provided Q1 2026 revenue guidance on the same day, which fell short of some analysts' expectations.
  • AMD's stock price fell 17% on February 4 and continued declining on February 5.

The players

Advanced Micro Devices (AMD)

A major semiconductor company that designs and manufactures computer processors and related technologies for the data center, gaming, professional, and embedded markets.

Nvidia

A leading designer of graphics processing units (GPUs) and other specialized chips, including for artificial intelligence applications.

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What’s next

Analysts will be closely watching AMD's performance in the coming quarters to see if the company can meet its ambitious growth targets. The success of the new MI450 AI chip will also be a key factor in determining AMD's trajectory.

The takeaway

While AMD's stock took a hit after its latest earnings report, the company's long-term growth prospects remain strong. The sell-off appears to have been an overreaction, and investors who take the time to analyze AMD's fundamentals may find the current price an attractive entry point.