AMD Plunges 6.6% Amid AI Market Turbulence: What's Fueling the Selloff?

Summary
• AMD shares cratered 6.59% intraday, trading at $200.87 as of 20:03 ET
• Intraday range spans $194.28 to $203.30, reflecting volatile investor sentiment
• Google’s Gemini 3 AI model and TPUs intensify competition in AI hardware markets
• Rising memory prices and broader tech-sector weakness amplify AMD’s near-term risks

Advanced Micro Devices faces a sharp selloff amid intensifying AI competition and sector-wide headwinds. The stock’s 6.6% decline reflects investor anxiety over Google’s emerging TPUs, rising memory costs, and broader tech-market uncertainty. With AMD’s PC segment under threat and AI market share in question, the sell-off underscores a critical juncture for the chipmaker.

AI Competition and Cost Pressures Spark Investor Concerns
AMD’s selloff is driven by a confluence of factors: Google’s Gemini 3 AI model and TPUs are perceived as direct threats to AMD’s AI infrastructure dominance, while rising memory prices threaten its PC segment. The broader tech market’s retreat—fueled by uncertainty over AI spending sustainability and Fed rate cuts—has amplified selling pressure. Analysts highlight that AMD’s recent investor day optimism is being overshadowed by execution risks, particularly in leveraging its Helios rack-scale platform to secure long-term AI market share.

Semiconductor Sector Under Pressure as AMD Trails Peers
The semiconductor sector is broadly weaker, with Intel (INTC) up 0.0559% as of 20:03 ET. AMD’s 6.6% decline outpaces sector weakness, reflecting its heightened exposure to AI competition and execution risks. While Intel’s modest gains suggest relative stability in core computing markets, AMD’s focus on AI and high-performance computing makes it more vulnerable to shifts in hyperscaler spending and alternative chip architectures like Google’s TPUs.

Bearish Options and Key Technical Levels for AMD’s Volatile Move
• 200-day MA: $148.99 (far below current price)
• RSI: 36.91 (oversold territory)
• MACD: -2.28 (bearish divergence)
• Bollinger Bands: Lower band at $205.39 (critical support)

AMD’s technicals and options chain suggest a high-probability bearish setup. The stock is trading near its 200-day MA and in oversold RSI territory, but the MACD histogram’s negative divergence and Bollinger Bands’ lower boundary at $205.39 indicate potential for further downside. Two options stand out for short-term bearish exposure:

• AMD20251205P190 (Put, $190 strike, 12/5 expiry):
- IV: 59.86% (elevated)
- Leverage: 55.11% (high)
- Delta: -0.270 (moderate sensitivity)
- Theta: -0.101 (moderate time decay)
- Gamma: 0.0158 (responsive to price swings)
- Turnover: $4.69M (liquid)
This put option offers high leverage and liquidity, ideal for capitalizing on a potential breakdown below $190. A 5% downside to $190.83 would yield a $0.83 payoff, aligning with its delta and IV profile.

• AMD20251205P195 (Put, $195 strike, 12/5 expiry):
- IV: 58.29% (high)
- Leverage: 38.68% (moderate)
- Delta: -0.356 (strong sensitivity)
- Theta: -0.0626 (low time decay)
- Gamma: 0.0183 (high responsiveness)
- Turnover: $2.41M (liquid)
This put’s high gamma and moderate delta make it ideal for a sharp move below $195. A 5% drop to $190.83 would yield a $4.17 payoff, leveraging its strong delta and IV.

Aggressive bears should target AMD20251205P190 if the stock breaks below $195. Watch for a breakdown of the 200-day MA ($148.99) to confirm a deeper bearish trend.

Backtest Advanced Micro Devices Stock Performance
Key Findings (high-level):• Sample size: 21 ­down-≥7 % one-day plunges in AMD from 2022-01-01 to 2025-11-25. • Post-event drift: on average AMD gained ≈ 6 % by trading day 20 and ≈ 8 % by day 30, modestly outpacing the benchmark. • Hit ratio: win-rate climbed from ~48 % (day 1) to ~65 % (day 20); statistical strength remains weak (not significant at conventional levels). • Implication: the stock often rebounds after a sharp one-day sell-off, but the edge is not strong enough to rely on without additional filters or risk management.Assumptions / auto-filled parameters:1. Price type: close (commonly used for event studies when only EOD data are needed). 2. Event holding window: 30 trading days (industry standard to capture short- to medium-term reaction). 3. Start / end dates defaulted to full available range (2022-01-01 – 2025-11-25) because user said “2022 to now”. The detailed interactive results are available below.Feel free to explore the interactive panel for the full day-by-day statistics, cumulative P&L curve, and distribution charts. Let me know if you’d like to adjust the window length, add risk filters (e.g., market regime, volatility thresholds), or run a tradeable strategy back-test using these signals.

AMD at Pivotal Crossroads: Key Levels and Immediate Action
AMD’s selloff reflects a critical inflection point driven by AI competition and sector-wide risks. While the stock’s technicals and options activity suggest near-term bearish momentum, the broader AI market’s trajectory will determine AMD’s long-term resilience. Investors should monitor the $195 support level and the 200-day MA ($148.99) as key decision points. With Intel (INTC) up 0.0559%, AMD’s underperformance highlights its vulnerability to execution risks. Aggressive bears may consider AMD20251205P190 if the stock breaks below $195, while bulls should wait for a rebound above $205.39 to re-enter.