AMD, Ambiq Micro, Broadcom, MACOM, and Western Digital shares plummet, what you need to know
What happened?
A number of stocks fell in the morning session after accelerating annual wholesale inflation pushed Treasury yields higher as executive turmoil at Nvidia pressured chipmakers.
The U.S. Bureau of Labor Statistics reported that October’s producer price index rose 0.3% month on month. That was marginally below the 0.4% increase expected by economists polled by Dow Jones, CNBC reported. However, unadjusted final demand climbed 6.5% over the past twelve months, the fastest annual pace since November 2022, pushing the 10-year Treasury yield up nearly four basis points to 5.14%.
Northlight Asset Management Chief Investment Officer Chris Zaccarelli told CNBC that persistent price pressures keep the Federal Reserve on course to raise interest rates in December. When benchmark bond yields sit above 5%, elevated equity valuations face immediate discount-rate pressure.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Processors and graphics chips company AMD fell 8.2%. Is now the time to buy AMD? Access our full analysis report here, it’s free.
- Analog semiconductors company Ambiq Micro fell 5.7%.
- Processors and graphics chips company Broadcom fell 5.4%. Is now the time to buy Broadcom? Access our full analysis report here, it’s free.
- Analog semiconductors company MACOM fell 6.1%. Is now the time to buy MACOM? Access our full analysis report here, it’s free.
- Memory semiconductors company Western Digital fell 6.2%. Is now the time to buy Western Digital? Access our full analysis report here, it’s free.
Zooming in on AMD
AMD’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 20 hours ago when the stock gained 5.7% on the news that investors pivoted capital toward Nvidia competitors amid the resignation of Nvidia CEO Jensen Huang.
As detailed in CNBC's live market coverage, AMD shares climbed 4 percent as the broader Nasdaq Composite fluctuated, with traders betting that the executive scandal at Nvidia would not derail the broader artificial intelligence trade.
In an interview cited by CNBC, Jed Ellerbroek, a portfolio manager at Argent Capital Management, stated that this leadership vacuum at Nvidia presents a "golden opportunity" for AMD, as major hyperscalers like Amazon and Google could increasingly turn to AMD's chips if Nvidia's product dominance falters. The CNBC report noted that the underlying demand for AI chips remains incredibly robust, allowing alternative suppliers like AMD to capture market share and investor enthusiasm as the Nvidia crisis unfolds.
AMD is up 135% since the beginning of the year, but at $525.08 per share, it is still trading 19.1% below its 52-week high of $649.42 from October 2026. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $3,585.
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