AMD and Intel shares fell sharply on Friday as technology stocks came under pressure, with investors assessing inflation data and uncertainty surrounding Nvidia’s leadership.
AMD shares plunged more than 9%, while Intel declined around 6%.
Nvidia shares also dropped 3%, contributing to broader market losses.
The S&P 500 fell around 0.73%, while the Nasdaq Composite declined over 1.2%.
Despite the selloff, analysts remain constructive on AMD’s competitive position in the artificial intelligence (AI) chip market, pointing to its growing product portfolio, expanding data-center business and opportunities arising from Nvidia’s leadership uncertainty.
Inflation data initially lifts equities before reversal
US equities initially moved higher after October’s producer price index (PPI) report showed wholesale prices increasing 0.3% month over month, below the 0.4% increase expected by economists polled by Dow Jones.
However, the report also showed producer prices rising 6.5% year over year, marking the largest annual increase since November 2022.
The inflation figures added to an uncertain backdrop for technology stocks, which subsequently reversed their initial gains.
Nvidia’s leadership uncertainty also remained in focus following reports surrounding the potential departure of CEO Jensen Huang.
The development raises questions about the company’s strategic investments, including its $5 billion investment in Intel in September 2025.
Nvidia formed a partnership with Intel to integrate the latter’s central processing units (CPUs) with its own graphics processing units (GPUs).
Based on Intel’s Thursday closing price of $61.20, Nvidia’s investment is now worth more than $13.14 billion.
Although the investment has generated substantial gains, Nvidia is not under immediate pressure to sell its stake.
A potential divestment could also attract scrutiny from the Trump administration, which views Intel as an important player in US semiconductor manufacturing.
Recent analyst calls on the company have been mixed. Bank of America, RBC Capital and Barclays all kept hold ratings on the stock in recent updates.
Bank of America slashed its target price from $100 to $80.
Analysts see AMD gaining ground against Nvidia
Despite AMD’s share price decline, Seaport Research analyst Jay Goldberg sees the company as an increasingly credible competitor to Nvidia.
Speaking to CNBC on Friday, Goldberg said AMD now offers “formidable products” that compete more effectively with Nvidia.
Goldberg believes uncertainty surrounding Nvidia could accelerate efforts by customers to diversify their chip suppliers.
While he stopped short of suggesting that Nvidia had lost its dominant position, he argued that AMD had progressed beyond simply establishing a foothold in the market.
Prime Capital Financial CIO Will McGough also sees opportunities for AMD and Broadcom as Nvidia navigates its leadership transition.
Speaking to CNBC on Friday, McGough highlighted Anthropic’s use of AMD chips and said the market was reassessing Nvidia’s competitive advantage as alternative suppliers improve their offerings.
He also pointed to Alphabet’s Google, Amazon, and Chinese chipmakers developing their own silicon, potentially creating additional competition for Nvidia while opening opportunities for AMD.
Data-center growth could support AMD’s expansion
Counterpoint Research’s latest analysis also highlighted AMD’s growing position in the data-center market.
Counterpoint expects the data center segment to contribute more than 80% of AMD’s revenue in 2027, with estimated data-center revenue reaching approximately $77 billion.
The firm also noted that AMD’s fourth-quarter revenue guidance of around $17 billion was approximately $800 million above consensus estimates.
Data-center revenue is expected to increase around 50% sequentially.
Counterpoint expects AMD’s server business to roughly double in 2027, while AI-related data-center revenue could more than double.
The research firm said AMD’s current advantage over Intel in data centers primarily comes from AI GPUs and racks rather than CPUs.
However, it expects meaningful gains in x86 server market share in 2027.
AMD has also secured supply from Taiwan Semiconductor Manufacturing Company to support its projected expansion.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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