Advanced Micro Devices (AMD) stock was down on Thursday and investors won’t find any news from the chip company that acted as a catalyst for the drop. Instead, traders can turn to rival semiconductor company Broadcom (AVGO) to learn why shares of AMD have fallen today.
Broadcom released its Q2 earnings report after markets closed on Wednesday. The company performed well during the quarter, with adjusted earnings per share and revenue that beat Wall Street’s estimates. The company’s strong results were due to growing AI chip demand, which has been a common link in recent earnings reports from chipmakers.
Unfortunately, Broadcom rained on its own parade when it failed to update its 2026 AI semiconductor revenue outlook. This left investors worried about AI chip revenue growth at the company, despite its recent earnings beat. On that same note, Broadcom’s Q3 AI chip revenue guidance of $16 billion was below analysts’ estimate of $17.2 billion. This further weighed on investor morale today.
How Broadcom’s Earnings Affected AMD Stock Today
Broadcom’s lackluster AI chip sales guidance spilled over to affect other companies in the sector, such as AMD and Intel (INTC). This pulled AMD stock down over 4% on Thursday. Even so, AMD stock was still up 141.4% year-to-date and 368.94% over the past 12 months.
AMD stock trading activity was light today, as some 12 million shares changed hands. For comparison, the company’s three-month average daily trading volume was about 42 million shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 27 Buy and eight Hold ratings over the past three months. This comes with an average AMD stock price target of $477.33, representing a potential 8.35% downside for the shares.
