AMD Stuck in Bear Market on Circular Investing Fears: Can Earnings Turn the Tide?

Key takeaways

• AMD’s stock is under pressure amid AI‑sector sell‑off and circular investing concerns; earnings will be a decisive catalyst for the next move.
• AMD shares fell to $504, 23.58% below all‑time high
• Market cap dropped to $824 billion from over $1.06 trillion
• AMD revenue forecast: $13 billion, up 41%
  YoY

  Year over year — compared with the same period last year.

What happened

Advanced Micro Devices (AMD) shares fell to $504, a 23.58% drop from its all‑time high of $660, and its market cap slid to $824 billion from over $1.06 trillion in October. The decline follows a broader sell‑off in AI‑focused tech stocks, with Nvidia and Intel also slipping. AMD’s own circular investments—$1 billion in Meta Platforms and $5 billion in Anthropic—have added to investor unease as the company prepares to report earnings.

Why it matters

The drop signals growing skepticism about the sustainability of AI‑driven growth and the value of companies that are both users and investors in the space. AMD’s earnings are expected to be a key test: analysts forecast a 41% revenue jump to $13 billion and

Short-term and longer-term

Short-term. Over the next few days, traders should watch AMD’s earnings release for any surprise in revenue or

Longer-term. For investors, the earnings report will test whether AMD’s AI‑driven revenue growth can sustain its valuation.