Key Highlights

• Shares traded at $435.41 pre-market, up 7.67% from the $404.40 prior close.

• Third-quarter Revenue was $13.38 billion, up 45% year over year.

• Data Center revenue rose 97% in the third quarter.

• Fourth-quarter revenue is guided to about $17 billion.

Advanced Micro Devices (NASDAQ:AMD) shares were higher in pre-market trading on Friday, November 6, at $435.41, up 7.67%, after closing Thursday at $404.40, down 17.26%. The decline came after the third-quarter report, which showed revenue of $13.38 billion, up 45%, and data center revenue up 97%.

Third-Quarter Report and Guidance Behind the Decline

Fourth-quarter revenue is guided to about $17 billion, against a consensus of roughly $16.2 billion, and the company outlined 2027 revenue growth above 80%. The shares fell despite those figures as investors worried that Democratic wins could slow data center buildouts.

The Philadelphia Semiconductor index fell about 12%, its worst day since March 2020. Nvidia (NASDAQ:NVDA) fell 9% in the same session.

Analyst Targets and the Valuation Picture

Analysts largely kept their targets above the current price. HSBC and Morgan Stanley have neutral-type ratings, while others are more positive. The stock's forward P/E is 27.00, the trailing P/E is 87.91, and EPS is $5.76.

The 52-week range is $188.22 to $658.52, and the market cap is $660.17 billion.

Jobs Report and Data Center Policy Set the Near-Term Backdrop

Shares are indicated higher as buyers step in and Nasdaq and chip-sector futures rebound. Investors are watching today's October jobs report and whether Democrats move away from data center restrictions, which are the near-term reference points for the stock.