Key takeaways AMD stock plunges 13% despite record AI revenue Nvidia falls 6% as semiconductor selling accelerates Nasdaq loses 3.6% amid growing data center concerns Advanced Micro Devices (
Advanced Micro Devices (AMD) shares plunged 13.1% on November 5, while Nvidia declined 6.3%, as renewed selling across artificial intelligence stocks erased Wall Street's powerful post-election rally.
The Nasdaq Composite tumbled 3.6%, while the S&P 500 lost 2%, according to Associated Press. AI cloud infrastructure company CoreWeave fell another 10%, highlighting the increasingly broad retreat from companies tied to the data center expansion.
AMD Stock Crashes Despite 97% Data Center Revenue GrowthAMD's decline is particularly striking because the company recently reported record financial results.
In its November 3 earnings release, AMD announced third-quarter revenue of $13.4 billion, up 45% year over year, while data center revenue surged 97% to $8.55 billion.
Adjusted earnings reached $2.09 per share, increasing 74% from the previous year. Management also projected approximately $17 billion in fourth-quarter revenue, suggesting continued demand for its AI processors.
Those results initially sent AMD stock higher, but the enthusiasm proved short-lived as investors reassessed semiconductor valuations.
The decline suggests that strong earnings alone may no longer justify the premiums investors previously assigned to AI-related companies.
An earlier semiconductor valuation analysis showed growing concerns about whether future earnings can support elevated share prices.
Nvidia and AI Stocks Face New Data Center RisksThe latest selloff followed Democratic election victories in several states where opposition to large data center projects has intensified.
Residents and local officials have raised concerns about electricity consumption, water usage and the cost of supporting rapidly expanding computing facilities.
Reuters reported that UBS strategists believe approximately 30% of expected US data center capacity additions in 2028 could face delays.
That estimate reflects potential exposure rather than confirmed cancellations, but it introduces uncertainty for semiconductor manufacturers expecting years of accelerating demand.
Nvidia, AMD and other chip suppliers depend partly on cloud companies continuing to build large computing clusters. Any slowdown in construction could delay hardware orders or change future revenue expectations.
The pressure follows the recent Nasdaq correction, which exposed growing investor concerns about infrastructure spending and financing.
Meanwhile, earlier AI market weakness demonstrated how semiconductor valuations can contract even when underlying sales remain strong.
Why Wall Street's Election Rally DisappearedWednesday's rally had reflected expectations that political restrictions could benefit established technology companies by making existing computing infrastructure more valuable.
Amazon, Microsoft and Alphabet gained as investors considered whether slower construction could reduce future capital expenditure.
However, the same scenario creates risks for chipmakers and infrastructure suppliers whose growth depends on continued expansion.
That distinction became increasingly visible on Thursday as investors sold semiconductor stocks and companies involved in financing new computing facilities.
Not every technology company declined. AppLovin surged 31.8% after reporting strong earnings, demonstrating that investors were still willing to reward businesses delivering substantial profits.
