AMD Shares Plunge as Chip Stocks Sell Off

Investors pulled back from semiconductor and AI-linked stocks amid doubts about heavy infrastructure spending and concerns over a Democratic-controlled Congress.

Updated on Nov. 5, 2026 in Semiconductors

AMD Shares Plunge as Chip Stocks Sell Off

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AMD shares fell as much as 17% during Thursday's session as the broader chip sector sold off sharply. The Nasdaq Composite dropped more than 5% and the Philadelphia Semiconductor Index slumped about 10%.

Why it matters

The selloff reflects growing doubts about the AI trade, as chip stocks fell amid massive spending from hyperscalers. Investors also worried a Democratic-controlled Congress could slow investment in AI infrastructure.

AMD fell as much as 17% intraday and was down 14.14% at $419.65 at publication, while the Nasdaq lost more than $2 trillion in market value in October. Qualcomm fell as much as 14% after smartphone chip sales missed Wall Street estimates.

The players

Advanced Micro Devices (AMD)

A U.S. semiconductor company that designs processors and graphics chips and competes with Intel and Nvidia in data center and PC markets.

Nvidia

A U.S. chipmaker that is the dominant supplier of GPUs used for AI training and inference, making it a bellwether for the AI infrastructure trade.

Qualcomm

A U.S. semiconductor firm known for mobile system-on-chip designs used in smartphones and other connected devices.

The details

Chip stocks sold off with Nvidia dropping as much as 9% and Dell Technologies falling as much as 15%. IREN, Hut 8, and Applied Digital declined between 14% and 21%, while SanDisk plunged nearly 20% as AI and memory stocks sold off.

October 2025: The Nasdaq shed more than $2 trillion in market value.
Thursday: AMD and the broader chip sector sold off during the session.

The Tech Race

The selloff tests whether the hyperscaler AI capital spending cycle that has propelled chipmakers such as Nvidia and AMD can keep pace with investor expectations. It also highlights how dependent the semiconductor sector has become on a small group of large cloud providers.

Investors holding semiconductor or AI-linked equities saw sharp paper losses during this session, which can affect retirement and brokerage account balances. Consumers tracking AI-driven hardware prices should watch whether the selloff alters product roadmaps or pricing from chipmakers.

The takeaway

Sharp single-day moves in chip stocks often reflect shifting expectations about AI spending rather than a change in underlying demand alone. Readers should weigh short-term volatility against longer-term company fundamentals before adjusting their own holdings.