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:
Semiconductor Manufacturing company Applied Materials(NASDAQ:AMAT) jumped 3.4%.Is now the time to buy Applied Materials? Access our full analysis report here, it's free.
Processors and Graphics Chips company AMD(NASDAQ:AMD) jumped 6.5%.Is now the time to buy AMD? Access our full analysis report here, it's free.
Processors and Graphics Chips company Broadcom(NASDAQ:AVGO) jumped 3.3%.Is now the time to buy Broadcom? Access our full analysis report here, it's free.
Semiconductor Manufacturing company Lam Research(NASDAQ:LRCX) jumped 4.2%.Is now the time to buy Lam Research? Access our full analysis report here, it's free.
Semiconductor Manufacturing company Marvell Technology(NASDAQ:MRVL) jumped 3.3%.Is now the time to buy Marvell Technology? Access our full analysis report here, it's free.
AMD's shares are extremely volatile and have had 51 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 14 days ago when the stock gained 4.8% on the news that easing selling pressure, lower Treasury yields, and positive momentum from Asian markets boosted investor sentiment ahead of Nvidia's quarterly earnings and key inflation data. Shares of major chipmakers and data-storage companies, including Micron Technology, SanDisk, Western Digital, and Advanced Micro Devices, pushed higher to recover from sharp declines in the previous session.
Broader sentiment across the technology sector was buoyed by falling U.S. Treasury yields and retreating oil prices, which help support valuations for high-growth industries. Per Reuters, investors are closely eyeing AI bellwether Nvidia's upcoming financial results for evidence that global demand for artificial intelligence infrastructure remains robust. Overnight gains in overseas semiconductor peers, such as Taiwan Semiconductor Manufacturing and SK Hynix, further supported the sector-wide rebound.
AMD is up 128% since the beginning of the year, but at $508.50 per share, it is still trading 12.5% below its 52-week high of $580.91 from June 2026. Investors who bought $1,000 worth of AMD's shares 5 years ago would now be looking at an investment worth $4,789.
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