Why AMD stock is crashing

Advanced Micro Devices (NASDAQ: AMD) delivered positive quarterly results on February 4, beating Wall Street revenue expectations by roughly $600 million. Nonetheless, AMD shares fell more than 13% following the report.

Considering the last quarter was nothing short of exceptional, the plummeting stock price has more to do with uncertainty in regard to how the company is going to perform in 2026.

Wedbush, for example, pointed to an unexpected boost from MI308 chip sales to China, but warned that it could mask muted growth across the rest of the chipmaker’s portfolio.

Similarly, Morgan Stanley analysts claimed the market’s reaction was harsher than anticipated, but acknowledged that investors are likely looking for proof that AMD’s new products will enjoy any sustained demand.

At press time, AMD stock was trading at $208.52, the latest plunge having extended its weekly losses to 17.53%.

AMD shares plunge amid weak guidance 

AMD now expects  just $100 million in China revenue for the first quarter of 2026, which is a 75% decline. 

At the same rate, annual China sales would fall hundreds of millions short of prior expectations, translating into an estimated $2–3 billion hit to market value.

Also noteworthy is that AMD has guided to tighter operating expense control for four consecutive quarters.

The impact is already visible. For instance, data center operating margins fell from 29% to 25%, even as management reiterates a long-term target of 35% by late 2026. 

Overall, then, the falling AMD share prices are not due to what happened in the previous quarter. Rather, the negative charts reflect doubt that the same can be replicated in the following one.

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