On October 30, Advanced Micro Devices (NASDAQ: AMD) shares fell 6.5% in premarket trading, after rival Intel (NASDAQ: INTC) saw its stock plunge 25% following the release of weak business guidance, sparking investor concerns over the demand outlook for the personal computer (PC) market.
Intel expects fourth-quarter revenue to decline by roughly 20% quarter over quarter, markedly below Wall Street expectations, and warned that inventory adjustments could persist into the first half of 2027, implying that the PC market will continue to face considerable pressure in the near term.
Advanced Micro Devices is scheduled to report its quarterly earnings on November 3.
Intel's latest assessment of soft PC demand and the duration of inventory corrections has led investors to worry that Advanced Micro Devices may face similar operational pressure, prompting the market to reassess the near-term earnings outlook for the semiconductor sector.
At the same time, Amazon reported capital expenditures above expectations, with growth in its core e-commerce business slowing to the lowest level in three years, further weighing on technology stocks and pressuring Nasdaq index futures lower.
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