TLDR
- AMD stock fell 6.5% in premarket trading Friday after Intel’s weak guidance.
- Intel plunged 25% after projecting a roughly 20% sequential revenue drop in Q4.
- Intel said the PC inventory correction could last into the first half of 2027.
- Amazon’s higher capital spending and slow e-commerce growth also weighed on Nasdaq futures.
- AMD reports quarterly earnings on November 3.
AMD stock fell 6.5% in premarket trading on Friday. The drop came after Intel (INTC) plunged 25% on weak guidance.
Advanced Micro Devices, Inc., AMD
Intel guided for fourth-quarter revenue to fall about 20% from the third quarter. That came in well below Wall Street expectations.
The forecast stung even though Intel beat third-quarter earnings expectations. Investors cared more about what comes next than what just happened.
Intel also said the PC inventory correction could last into the first half of 2027. That is a longer stretch than many on the Street had planned for.
Analysts may now cut estimates across the sector. Chip companies tied to PC demand look the most exposed.
AMD competes directly with Intel in PC processors. Traders did not wait around to see whether the problem is shared.
Intel’s Outlook Sets the Tone
Selling spread across semiconductor stocks on Friday. Investors worry the same demand trouble could show up in AMD’s numbers.
Longer inventory fixes can slow new orders. That can limit revenue growth until buying picks up again.
Intel’s results do not automatically apply to AMD. What happens next depends on AMD’s own sales, product demand and competitive position.
Intel was not the only weight on tech. Amazon (AMZN) also hit sentiment.
Amazon reported higher-than-expected capital spending. It also posted its slowest core e-commerce growth in three years.
Those results weighed on Nasdaq futures. Investors are asking tougher questions about how much big tech is spending on AI infrastructure.
What AMD Investors Will Watch
AMD reports quarterly results on November 3. The report should show whether it faces the same pressure as Intel.
Investors will look for comments on PC processor demand. They will also listen for anything on industry inventory levels.
The premarket drop suggests expectations have turned more cautious. Traders seem to be pricing in some risk before the numbers land.
Management’s guidance may matter as much as the quarter itself. It could show whether Intel’s outlook is a company problem or an industry one.
With AMD down 6.5% and Intel down 25% in premarket trading, PC-related chip stocks are under pressure. AMD reports on November 3.
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