Tech Selloff Continues, Market Sentiment Deteriorates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy AMD?
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.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 196.040
Low
210.00
Averages
289.13
High
377.00
Current: 196.040
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), 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, 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+, among 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 and Broadcom Poised for Data Center Growth
- Data Center Opportunity: AMD is expected to highlight its data center CPU potential in the upcoming earnings report, as the rise of agentic AI drives increased demand, likely boosting company performance and stock price.
- Strong Market Demand: AMD's CPUs are reportedly supply-constrained with rising prices, indicating robust market demand that will provide a favorable outlook for the company's profitability.
- Broadcom's AI Growth: Broadcom projects $100 billion in sales from custom AI chips by fiscal 2027, showcasing its significant growth potential in AI infrastructure, further driving company revenue.
- Networking Component Demand: As AI chip clusters expand, the demand for Broadcom's networking products, particularly Ethernet switches, is set to rise, providing an additional revenue stream for the company.
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Huawei's Cloud Revenue Declines Amid AI Chip Development Challenges
- Cloud Revenue Decline: Huawei's cloud revenue from external customers fell by 3.5% to 32.16 billion yuan ($4.6 billion) in 2025, indicating significant competitive pressure, particularly from companies like ByteDance, amid global cloud service market expansion.
- Overall Revenue Growth Weakness: While Huawei's total cloud revenue, including internal customers, rose by 4.8% to 72.8 billion yuan, the main ICT infrastructure segment's growth slowed to 2.6% from 4.9% in 2024, reflecting insufficient market acceptance of its self-developed Ascend AI chip solutions.
- Consumer Business Slowdown: Huawei's consumer business revenue grew only 1.6% to 344.47 billion yuan in 2025, a stark contrast to the 38.3% growth in 2024, highlighting the ongoing impact of U.S. sanctions and a sluggish Chinese consumer market.
- Innovative R&D Investment: Huawei invested a record 192.3 billion yuan in R&D in 2025, accounting for 21.8% of total revenue, demonstrating the company's commitment to technological innovation despite challenges, aiming to maintain a competitive edge in future markets.
See More
Investment Opportunities in AMD and Broadcom Ahead of Earnings
- AMD Data Center Opportunity: AMD's upcoming earnings report is expected to highlight its data center CPU opportunity, with surging demand for CPUs driven by the rise of agentic AI, likely leading to price increases and strengthening the company's market position.
- GPU Partnerships: AMD has established partnerships with two major GPU companies, with initial deployments expected in the second half of 2026, which will provide robust support for future revenue growth and may lead to strong earnings guidance in the upcoming report.
- Broadcom AI Infrastructure Growth: Broadcom faces a significant growth opportunity in AI infrastructure, projecting $100 billion in sales from custom AI chips by fiscal 2027, showcasing its strong market potential.
- Surge in Networking Component Demand: As AI chip sales increase, Broadcom's networking business is set to experience rapid growth, particularly in demand for connectivity components like Ethernet switches, further driving overall performance improvements for the company.
See More
OpenAI Shuts Down Video Platform Sora Amid Strategic Refocus
- Strategic Refocus: OpenAI's decision to shut down its video generation tool Sora indicates a shift towards more profitable business areas, particularly in response to strong competition from Google, showcasing the company's agility in adapting to market dynamics.
- Lack of Monetization Path: Analysts highlight that Sora's unclear monetization strategy led to a resource reallocation towards more commercially viable enterprise applications, reflecting the company's strategic considerations in resource management.
- GPU Resource Reallocation: By closing Sora, OpenAI plans to redirect GPU and memory resources to enterprise-level projects, aiming to enhance overall business efficiency and meet larger market demands, demonstrating a focus on enterprise clients.
- Future Development Direction: With increasing attention on agent technology, OpenAI's strategic pivot may accelerate further innovations in the AI space, especially as 2025 is viewed as a pivotal year for agent technology, signaling the company's intent to advance in this direction.
See More
Nebius Plans to Build Major AI Data Center in Finland
- Data Center Construction: Nebius announced plans to build an AI data center in Lappeenranta, Finland, with a capacity of up to 310 MW, expected to start serving customers by 2027, marking a significant step in the company's global AI infrastructure expansion.
- Market Demand Response: As demand for AI infrastructure surges across Europe, Nebius's new facility is set to become one of the largest AI data centers in the region, aimed at meeting the growing need for computational power, thereby enhancing the company's competitive edge in the industry.
- Strategic Expansion: Nebius CEO Arkady Volozh stated that this expansion will significantly bolster the company's presence in Finland, further driving its strategic goals in the global AI sector.
- Industry Dynamics: This announcement aligns with other significant AI infrastructure investments in Europe, such as Mistral's $830 million financing for a data center near Paris, highlighting the industry's focus and investment surge in AI computing capabilities.
See More
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- Market Share Dominance: TSMC currently holds a 71% share of the global chip market and produces over 90% of advanced semiconductors, positioning itself to benefit significantly from the surging demand for AI chips, thereby reinforcing its market leadership.
- Strong Financial Performance: In Q4, TSMC reported revenue of $33.7 billion, a 26% year-over-year increase, with earnings per share rising 35% to $3.14, and gross margin improving to 62.3%, showcasing the company's exceptional ability to scale production and leverage its assets effectively.
- Future Growth Outlook: Management anticipates Q1 revenue of $35.2 billion, up 38%, and operating income of $19.36 billion, up 56%, indicating that the company is set to maintain robust growth momentum in the coming quarters.
- Expansive Market Potential: The semiconductor market is projected to reach nearly $1.6 trillion by 2030, and as an industry leader, TSMC is expected to continue benefiting from this long-term growth trend due to its cutting-edge process technology and strong customer base.
See More
AMD and Broadcom Poised for Data Center Growth
- Data Center Opportunity: AMD is expected to highlight its data center CPU potential in the upcoming earnings report, as the rise of agentic AI drives increased demand, likely boosting company performance and stock price.
- Strong Market Demand: AMD's CPUs are reportedly supply-constrained with rising prices, indicating robust market demand that will provide a favorable outlook for the company's profitability.
- Broadcom's AI Growth: Broadcom projects $100 billion in sales from custom AI chips by fiscal 2027, showcasing its significant growth potential in AI infrastructure, further driving company revenue.
- Networking Component Demand: As AI chip clusters expand, the demand for Broadcom's networking products, particularly Ethernet switches, is set to rise, providing an additional revenue stream for the company.
See More
Huawei's Cloud Revenue Declines Amid AI Chip Development Challenges
- Cloud Revenue Decline: Huawei's cloud revenue from external customers fell by 3.5% to 32.16 billion yuan ($4.6 billion) in 2025, indicating significant competitive pressure, particularly from companies like ByteDance, amid global cloud service market expansion.
- Overall Revenue Growth Weakness: While Huawei's total cloud revenue, including internal customers, rose by 4.8% to 72.8 billion yuan, the main ICT infrastructure segment's growth slowed to 2.6% from 4.9% in 2024, reflecting insufficient market acceptance of its self-developed Ascend AI chip solutions.
- Consumer Business Slowdown: Huawei's consumer business revenue grew only 1.6% to 344.47 billion yuan in 2025, a stark contrast to the 38.3% growth in 2024, highlighting the ongoing impact of U.S. sanctions and a sluggish Chinese consumer market.
- Innovative R&D Investment: Huawei invested a record 192.3 billion yuan in R&D in 2025, accounting for 21.8% of total revenue, demonstrating the company's commitment to technological innovation despite challenges, aiming to maintain a competitive edge in future markets.
See More
Investment Opportunities in AMD and Broadcom Ahead of Earnings
- AMD Data Center Opportunity: AMD's upcoming earnings report is expected to highlight its data center CPU opportunity, with surging demand for CPUs driven by the rise of agentic AI, likely leading to price increases and strengthening the company's market position.
- GPU Partnerships: AMD has established partnerships with two major GPU companies, with initial deployments expected in the second half of 2026, which will provide robust support for future revenue growth and may lead to strong earnings guidance in the upcoming report.
- Broadcom AI Infrastructure Growth: Broadcom faces a significant growth opportunity in AI infrastructure, projecting $100 billion in sales from custom AI chips by fiscal 2027, showcasing its strong market potential.
- Surge in Networking Component Demand: As AI chip sales increase, Broadcom's networking business is set to experience rapid growth, particularly in demand for connectivity components like Ethernet switches, further driving overall performance improvements for the company.
See More
OpenAI Shuts Down Video Platform Sora Amid Strategic Refocus
- Strategic Refocus: OpenAI's decision to shut down its video generation tool Sora indicates a shift towards more profitable business areas, particularly in response to strong competition from Google, showcasing the company's agility in adapting to market dynamics.
- Lack of Monetization Path: Analysts highlight that Sora's unclear monetization strategy led to a resource reallocation towards more commercially viable enterprise applications, reflecting the company's strategic considerations in resource management.
- GPU Resource Reallocation: By closing Sora, OpenAI plans to redirect GPU and memory resources to enterprise-level projects, aiming to enhance overall business efficiency and meet larger market demands, demonstrating a focus on enterprise clients.
- Future Development Direction: With increasing attention on agent technology, OpenAI's strategic pivot may accelerate further innovations in the AI space, especially as 2025 is viewed as a pivotal year for agent technology, signaling the company's intent to advance in this direction.
See More
Nebius Plans to Build Major AI Data Center in Finland
- Data Center Construction: Nebius announced plans to build an AI data center in Lappeenranta, Finland, with a capacity of up to 310 MW, expected to start serving customers by 2027, marking a significant step in the company's global AI infrastructure expansion.
- Market Demand Response: As demand for AI infrastructure surges across Europe, Nebius's new facility is set to become one of the largest AI data centers in the region, aimed at meeting the growing need for computational power, thereby enhancing the company's competitive edge in the industry.
- Strategic Expansion: Nebius CEO Arkady Volozh stated that this expansion will significantly bolster the company's presence in Finland, further driving its strategic goals in the global AI sector.
- Industry Dynamics: This announcement aligns with other significant AI infrastructure investments in Europe, such as Mistral's $830 million financing for a data center near Paris, highlighting the industry's focus and investment surge in AI computing capabilities.
See More
TSMC Poised to Join $3 Trillion Club
- Market Share Dominance: TSMC currently holds a 71% share of the global chip market and produces over 90% of advanced semiconductors, positioning itself to benefit significantly from the surging demand for AI chips, thereby reinforcing its market leadership.
- Strong Financial Performance: In Q4, TSMC reported revenue of $33.7 billion, a 26% year-over-year increase, with earnings per share rising 35% to $3.14, and gross margin improving to 62.3%, showcasing the company's exceptional ability to scale production and leverage its assets effectively.
- Future Growth Outlook: Management anticipates Q1 revenue of $35.2 billion, up 38%, and operating income of $19.36 billion, up 56%, indicating that the company is set to maintain robust growth momentum in the coming quarters.
- Expansive Market Potential: The semiconductor market is projected to reach nearly $1.6 trillion by 2030, and as an industry leader, TSMC is expected to continue benefiting from this long-term growth trend due to its cutting-edge process technology and strong customer base.
See More
