AMD shares slip ahead of earnings as Intel warns of prolonged PC slowdown
AMD stock fell 3% before its Q3 2026 earnings report, while Intel warned that a PC slowdown could last through early 2027, prompting market debate over AMD's exposure to both PC and AI data-center markets.
Advanced Micro Devices (NASDAQ:AMD) entered afternoon trading at $489.03, down about 3%, ahead of its Q3 2026 earnings release scheduled for November 3. The decline follows an 11% drop on October 30 after Intel (NASDAQ:INTC) warned that a slowdown in PC demand could extend at least through the first half of 2027. Intel’s shares fell 29% in that session and remain down 5% overall.
Intel set its fourth-quarter 2026 revenue guidance at $15 billion to $16 billion, below the roughly $17 billion consensus, and projected an adjusted gross margin of 38%, down from 44.1% in the prior quarter. On the earnings call, CEO Lip-Bu Tan said, "In recent weeks, our customers began signaling a PC slowdown based on the memory prices and availability," and CFO David Zinsner added, "Make no mistake, we are not optimistic about next year in terms of memory."
Despite the PC outlook, Intel reported a 78% year-over-year increase in Data Center and AI revenue to $7.32 billion, although supply constraints in substrate and memory continue to affect some server shipments.
For AMD, the Intel warning primarily impacts its client segment, which generated $3.06 billion in Q2 2026. The company's data-center revenue rose 107% year over year to $6.72 billion, representing 58% of total sales. CEO Lisa Su previously noted that the company is "planning for a softer PC market as higher memory and component costs weigh on demand."
NVIDIA (NASDAQ:NVDA) shares rose 1% to $206.76, with its data-center revenue reaching $89.02 billion in Q2 FY2027, up 117%, reflecting limited exposure to the PC cycle.
Analysts will watch AMD’s upcoming report to see whether its fourth-quarter 2026 outlook aligns with the roughly $16.2 billion implied by full-year forecasts. The company projected Q3 revenue around $13 billion, close to the consensus of $13.09 billion. Expectations for future earnings remain high, with consensus EPS estimates of $7.62 for 2026 and $15.93 for 2027, though the current forward earnings multiple of about 45× exceeds its five-year average.