Advanced Micro Devices falls on regulatory concerns, broad selloff

Advanced Micro Devices shares dropped 14.5% in morning trading Wednesday to $418.09 as regulatory concerns following the November 2026 midterm elections overshadowed the company's strong third-quarter results.

The decline followed the Democratic Party's sweep of both chambers of Congress in the midterm elections. A prominent Democratic congresswoman called for a pause on advanced AI development and regulation of what she described as an "out of control" industry. The comments triggered selling across AI and semiconductor stocks as investors reassessed regulatory risks for AI infrastructure.

The selloff came despite AMD's record quarterly performance. The company reported third-quarter revenue of $13.38 billion, representing a 45% increase from the previous year and exceeding analyst expectations. The data center segment revenue nearly doubled to $8.55 billion.

CEO Lisa Su projected full-year 2027 revenue growth above 80%. The company issued fourth-quarter guidance of approximately $17 billion, which was $700 million to $800 million higher than analyst estimates.

AMD shares had risen in after-hours trading on November 3 following the earnings announcement. The gains reversed as election results became clear and concerns about potential AI regulation increased.

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