Tech Selloff Continues, Market Sentiment Deteriorates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Continued Tech Decline: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) fell for the seventh consecutive day, returning to levels last seen during the April 2025 tariff shock, indicating a severe lack of confidence in tech stocks.
- Nasdaq Index Drop: The Nasdaq 100 dropped 2.2% after a 1.7% decline on Tuesday, as investors aggressively rotated out of long-duration growth stocks into energy and materials, reflecting a risk-off sentiment in the market.
- Bitcoin Price Decline: Bitcoin (CRYPTO:BTC) slid 2.5% to around $73,000, marking its lowest level since early November 2024, fully erasing the post-Trump election rally, which highlights the risk-averse tone in the crypto markets.
- Palantir Stock Plunge: Palantir Technologies Inc. (NASDAQ:PLTR) tumbled over 12%, reversing part of Tuesday's 6.9% surge, indicating investor concerns about the company's outlook, which may impact its future financing and market performance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 200.190
Low
200.00
Averages
284.10
High
377.00
Current: 200.190
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Shares Plunge 17% Despite Beating Earnings Expectations
- Earnings Beat: AMD reported adjusted earnings per share of $1.53 for Q4, surpassing analysts' expectations of $1.32, with revenue rising 34% year-over-year to nearly $10.3 billion, significantly exceeding Wall Street's forecast of $9.7 billion, indicating strong market performance.
- Negative Market Reaction: Despite the impressive results, AMD's stock plummeted over 17% post-report and fell nearly 4% more the following day, reflecting market anxiety regarding tech stocks and concerns over AMD's high valuation.
- Valuation Concerns: Prior to the report, AMD's price-to-earnings ratio was around 90, indicating that market expectations for perfection were too high; thus, even a strong earnings beat was not enough to satisfy investors, leading to a sell-off and highlighting sensitivity to high valuations.
- Long-Term Investment Opportunity: Although the stock may continue to decline in the short term with a current P/E ratio of 74, AMD could still represent a worthwhile buying opportunity for long-term investors, especially given its robust fundamentals.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Recent Updates on AMD and Other AI Stocks
- Video Update: Today's video discusses recent updates affecting AMD and other AI stocks, providing an in-depth analysis of market trends to help investors better understand the current investment landscape.
- Market Prices: The stock prices mentioned in the video are the after-market prices from February 3, 2026, reflecting ongoing investor interest and sentiment shifts regarding AI stocks.
- Subscription Suggestion: The video encourages viewers to subscribe for more related information, indicating the content creator's intention to enhance viewer engagement and loyalty through continuous updates.
- Special Offer: The special offer link mentioned in the video may attract viewers to participate further, increasing the content's commercialization potential and viewer interaction.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Cathie Wood Increases Stock Holdings Amid Market Volatility
- AMD Strong Performance: AMD's fourth-quarter revenue surged 34% year-over-year to $10.3 billion, with a 39% increase in data center revenue indicating robust market demand, despite disappointing guidance suggesting challenges ahead.
- Tesla's Transition Challenges: Tesla faces stagnant sales growth, impacted by the end of tax incentives, yet Cathie Wood's decision to increase her stake reflects confidence in the company's long-term potential amid ongoing transformation efforts.
- Tempus AI Rapid Growth: Tempus AI reported an impressive 84% revenue growth over the past nine months, establishing connections with 65% of U.S. academic medical centers and 55% of oncologists, highlighting its significant impact in the healthcare AI sector.
- Investment Opportunities Amid Market Volatility: With AMD, Tesla, and Tempus AI experiencing price corrections, Cathie Wood's active buying strategy underscores her belief in their long-term growth potential, even as market risks remain prevalent.
See More
Alphabet's CapEx Surge Boosts Broadcom Stock
- CapEx Outlook Boost: Alphabet Inc. raised its 2026 capital expenditure forecast to $175 billion to $185 billion, significantly above the $115 billion expected, indicating strong demand for AI infrastructure, which led to Broadcom's stock rising 3.32% to $318.27.
- Growing AI Hardware Demand: As Alphabet increases investments in data centers and cloud infrastructure, Broadcom's role in designing and producing TPUs becomes increasingly vital, likely enhancing the company's market share in the custom AI chip sector.
- Market Optimism: Ben Reitzes from Melius Research noted that Alphabet's capital spending will serve as a positive catalyst for Broadcom and other related companies, reflecting strong market confidence in rising AI and networking demand, potentially driving Broadcom's performance growth.
- Analyst Ratings Remain Bullish: Jefferies reiterated its Buy rating on Broadcom with a price target of $500, emphasizing the company's strong positioning to benefit from AI and networking demand, indicating significant growth potential ahead.
See More
AMD Shares Plunge 17% Despite Beating Earnings Expectations
- Earnings Beat: AMD reported adjusted earnings per share of $1.53 for Q4, surpassing analysts' expectations of $1.32, with revenue rising 34% year-over-year to nearly $10.3 billion, significantly exceeding Wall Street's forecast of $9.7 billion, indicating strong market performance.
- Negative Market Reaction: Despite the impressive results, AMD's stock plummeted over 17% post-report and fell nearly 4% more the following day, reflecting market anxiety regarding tech stocks and concerns over AMD's high valuation.
- Valuation Concerns: Prior to the report, AMD's price-to-earnings ratio was around 90, indicating that market expectations for perfection were too high; thus, even a strong earnings beat was not enough to satisfy investors, leading to a sell-off and highlighting sensitivity to high valuations.
- Long-Term Investment Opportunity: Although the stock may continue to decline in the short term with a current P/E ratio of 74, AMD could still represent a worthwhile buying opportunity for long-term investors, especially given its robust fundamentals.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Recent Updates on AMD and Other AI Stocks
- Video Update: Today's video discusses recent updates affecting AMD and other AI stocks, providing an in-depth analysis of market trends to help investors better understand the current investment landscape.
- Market Prices: The stock prices mentioned in the video are the after-market prices from February 3, 2026, reflecting ongoing investor interest and sentiment shifts regarding AI stocks.
- Subscription Suggestion: The video encourages viewers to subscribe for more related information, indicating the content creator's intention to enhance viewer engagement and loyalty through continuous updates.
- Special Offer: The special offer link mentioned in the video may attract viewers to participate further, increasing the content's commercialization potential and viewer interaction.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Cathie Wood Increases Stock Holdings Amid Market Volatility
- AMD Strong Performance: AMD's fourth-quarter revenue surged 34% year-over-year to $10.3 billion, with a 39% increase in data center revenue indicating robust market demand, despite disappointing guidance suggesting challenges ahead.
- Tesla's Transition Challenges: Tesla faces stagnant sales growth, impacted by the end of tax incentives, yet Cathie Wood's decision to increase her stake reflects confidence in the company's long-term potential amid ongoing transformation efforts.
- Tempus AI Rapid Growth: Tempus AI reported an impressive 84% revenue growth over the past nine months, establishing connections with 65% of U.S. academic medical centers and 55% of oncologists, highlighting its significant impact in the healthcare AI sector.
- Investment Opportunities Amid Market Volatility: With AMD, Tesla, and Tempus AI experiencing price corrections, Cathie Wood's active buying strategy underscores her belief in their long-term growth potential, even as market risks remain prevalent.
See More
Alphabet's CapEx Surge Boosts Broadcom Stock
- CapEx Outlook Boost: Alphabet Inc. raised its 2026 capital expenditure forecast to $175 billion to $185 billion, significantly above the $115 billion expected, indicating strong demand for AI infrastructure, which led to Broadcom's stock rising 3.32% to $318.27.
- Growing AI Hardware Demand: As Alphabet increases investments in data centers and cloud infrastructure, Broadcom's role in designing and producing TPUs becomes increasingly vital, likely enhancing the company's market share in the custom AI chip sector.
- Market Optimism: Ben Reitzes from Melius Research noted that Alphabet's capital spending will serve as a positive catalyst for Broadcom and other related companies, reflecting strong market confidence in rising AI and networking demand, potentially driving Broadcom's performance growth.
- Analyst Ratings Remain Bullish: Jefferies reiterated its Buy rating on Broadcom with a price target of $500, emphasizing the company's strong positioning to benefit from AI and networking demand, indicating significant growth potential ahead.
See More
