AMD Stock Drops 13% Amid AI Funding Crisis
Advanced Micro Devices shares fell 13% as investors fear tightening funding for AI firms could reduce demand for data center chips.
Shares of Advanced Micro Devices fell 13% last week as investors reacted to tightening funding conditions across the artificial intelligence sector. The decline follows a series of financial setbacks for AI-related firms, including the cancelled initial public offering of Australian data center company Firmus and soaring financing costs for CoreWeave.
Market concerns center on a potential valuation reduction for Anthropic and the postponed IPO of OpenAI. These developments threaten the demand for AMD's MI450 GPUs, which are intended for use by Meta Platforms, Microsoft, Anthropic, and OpenAI. Specifically, OpenAI's delayed public offering risks its agreement to deploy 6 gigawatts of computing capacity using AMD hardware.
Investors are now focused on the company's third-quarter 2026 operating results. CEO Lisa Su is expected to provide guidance on November 3 that will determine if AMD maintains its projection for data center sales to more than double by 2027.
