Advanced Micro Devices, Inc. (AMD) stock price has crashed 3.24% (16.06 points) in the pre0market hours after closing 5.17% (27 points) lower on Monday, July 27, 2026. Let’s discus why AMD is down today, and if the stock can rebound soon.
Why Is AMD Stock Price Crashing?
AMD’s latest price correction comes amid a larger AI stock sell off. The sell off was triggered by increased AI infrastructure spending concerns and rising competition from Chinese firms. ChangXin Memory Technologies (CXMT) experienced one of mainland China’s most significant debuts. The company is expected to bring substantial competition to the AI stock sector, especially memory chip manufacturers.
China has also revealed domestic Deep Ultraviolet (DUV) lithography tools which could present supply chain issues for AMD and the larger semiconductor sector. The emergence of fresh competition may have lowered investor sentiment on AMD.
Will The Stock Rebound?
Despite the sell off, Wall Street is still quite bullish on AMD’s performance. Baird recently raised AMD’s stock price target to $1250. AMD is also set to reveal its quarterly earnings report on August 4, 2026. Experts anticipate stellar earnings, mimicking the company’s Q1 results.
AMD also recently revealed its latest AI chips, which the company claims can outperform Nvidia’s offerings. The coming of agentic AI is also expected to propel AMD’s stock price. Unlike generative AI which utilizes GPU (Graphics Processing Unit) power, agentic AI is more focusses on CPU (Central Processing Unit) capabilities. AMD is one of the few companies that offers both GPU and CPU computation power.
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AMD’s focus on data centers is also expected to become a core part of its business. Data centers have become one of the fastest growing sectors in the world, and AMD’s foray into the industry will likely pay off in the coming years.