AMD Shares Rebound 3.48% as Chip Stocks Recover From Monday's Sharp AI-Driven Slowdown Selloff Across Sector

SANTA CLARA, Calif. — Shares of Advanced Micro Devices Inc. rose 3.48% to $510.59 in Tuesday trading, adding $17.18, as semiconductor stocks broadly clawed back a portion of the losses posted Monday, when a weekend essay calling for a slower pace of artificial intelligence development triggered a steep selloff across the chip sector.

AMD's gain builds on a modest recovery already underway Monday, when the stock closed up 1.34% at $500.00 following a volatile session earlier in the week. Tuesday's rebound came alongside broader strength in chip-related names globally, echoing similar recoveries in Asian markets, where previously battered technology stocks also regained ground after Monday's steep declines tied to the AI development debate sparked by Anthropic Chief Executive Officer Dario Amodei's essay over the weekend.

AMD's rebound comes against the backdrop of a notably bullish outlook the company laid out just days earlier at the Citi 2026 Global TMT Conference. Speaking at the event, AMD executives raised the company's estimate for the total addressable market for artificial intelligence, now projecting the opportunity could reach $2 trillion by 2030. The company also said it expects its data-center sales to approach $70 billion in 2027, roughly double the business size it anticipates for 2026, with AI accelerators alone expected to generate sales in the low $40 billion range next year. AMD executives further projected that the broader server processor market could reach $220 billion by 2030, an area the company has identified as a second major growth driver alongside its AI accelerator business. The company said it has begun shipping its MI450 AI accelerator products, with production expected to build through the first quarter of 2027.

That bullish framing followed AMD's second-quarter 2026 earnings report, released August 4, in which the company posted revenue of $11.54 billion, up 50% from a year earlier, alongside earnings of $1.66 per share, topping the $1.62 analysts had expected. Data-center revenue doubled year-over-year to $6.7 billion, now accounting for 58% of the company's total sales, underscoring how central AI and server infrastructure demand has become to AMD's overall business. The company guided third-quarter revenue to approximately $13 billion, implying roughly 41% year-over-year growth at the midpoint of that range, and said it expects server CPU revenue to climb more than 80% in the second half of 2026 and more than 70% in 2027, with its data-center segment projected to more than double in 2027 as its Helios and MI500 product lines ramp up production. Despite the strong headline numbers, AMD shares initially fell nearly 9% in after-hours trading following the report, as investors weighed rising operating expenses, up 40% year-over-year to $3.4 billion, against the company's otherwise robust growth trajectory. Gaming revenue, by contrast, fell 31% year-over-year, reflecting continued softness in that segment even as AI and data-center demand has surged.

Wall Street's overall assessment of AMD has remained strongly positive despite the stock's recent volatility. According to 55 analysts polled by S&P Global, AMD carries a consensus rating of Strong Buy, with an average price target of $615.07, implying potential upside of roughly 25% from Monday's closing price. Individual analyst targets range as high as $1,250 and as low as $365, reflecting a wide spread of views on how AMD's AI-driven growth story will play out over the coming years. Piper Sandler initiated coverage of the stock with an Overweight rating on September 9, adding to the broadly bullish tilt among analysts covering the company.

AMD's stock has delivered extraordinary returns over the past year, climbing roughly 225% according to data from TradingView, and reaching an all-time high of $584.73 on June 30, 2026, before pulling back amid the broader volatility that has affected AI-linked chip stocks in recent weeks. The stock's beta of 1.79 reflects its tendency to move more sharply than the broader market in both directions, a pattern evident in both Monday's steep decline and Tuesday's rebound.

Tuesday's recovery in AMD shares was part of a broader rebound across chip stocks, even as some peers continued to show signs of lingering weakness. Micron Technology, Broadcom, Intel and other major chipmakers had all posted sharp declines Monday alongside AMD, tied to the same broader concerns about the pace of AI infrastructure spending that triggered the sector-wide selloff. The extent to which Tuesday's recovery proves durable is likely to depend heavily on how the broader debate over AI development timelines, sparked by Amodei's essay and echoed by other prominent AI executives over the weekend, continues to evolve in the days ahead.

Investors are also weighing the upcoming Federal Reserve interest rate decision, expected Wednesday, as a separate factor likely to influence trading in high-growth, high-multiple technology stocks like AMD in the near term. Rising interest rates tend to pressure the valuations of companies whose worth is heavily tied to expectations of substantial future earnings growth, a dynamic that has added an additional layer of volatility to AMD and its chip sector peers even as the underlying demand story for AI infrastructure has, according to the company's own recent guidance, continued to strengthen.

With AMD's next earnings report not scheduled until November 3, investors are likely to rely on ongoing developments in the broader AI industry debate, along with any further analyst commentary following the company's recent Citi conference presentation, to gauge whether Tuesday's rebound marks a durable stabilization for the stock or merely a temporary bounce within a longer period of volatility tied to shifting sentiment around the pace of AI infrastructure spending.