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AMD Sinks 10.5% as Chip Rally Unwinds, Nasdaq 100 Falls 1.7%: Stock Market Today
US stocks fell Friday as traders reversed a recent shift from Nvidia into rival chipmakers. AMD dropped 10.5%, giving back about a third of its nearly 45% rise over the previous five sessions, while the Nasdaq 100 fell 1.7% and the S&P 500 declined 0.7%.
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What happened
US stocks fell Friday as traders reversed a recent shift from Nvidia into rival chipmakers. AMD dropped 10.5%, giving back about a third of its nearly 45% rise over the previous five sessions, while the Nasdaq 100 fell 1.7% and the S&P 500 declined 0.7%.
Confirmed
Global impact / market context
The sharp reversal shows how quickly trading demand can move between chipmakers: AMD’s recent rally amplified Friday’s loss when investors changed course. If scrutiny of restricted Nvidia chips deepens, companies tied to chip supply and sales could face added costs or limits, though the article does not establish such outcomes.
Analyst inference
The broader market also weakened, with the Dow down 0.1%, while chip stocks faced both a reversal of recent buying and scrutiny over restricted Nvidia hardware reportedly installed in China. Cisco fell 6.4% after higher costs squeezed adjusted gross profit per sale despite record revenue.
Confirmed
What to watch
- Whether Nvidia or authorities comment further on the reported sale and installation of restricted H800 chips, and whether any response changes chip shipments or business costs. Analyst inference
- Whether trading in AMD and other chipmakers stabilizes after the reversal, including whether AMD retains gains from its nearly 45% rise over five sessions. Analyst inference
- Whether Cisco provides more detail on the 250-basis-point adjusted gross profit squeeze and whether its higher fiscal 2027 outlook remains intact. Confirmed
Evidence
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