AMD and Intel shares drop as tech stocks slide on inflation data

AMD and Intel shares fell sharply on Friday, with AMD dropping over 9% and Intel about 6%, as tech stocks declined amid inflation data and uncertainty over Nvidia's leadership. Nvidia shares also fell 3%, contributing to broader market losses. The S&P 500 fell about 0.73% and the Nasdaq Composite dropped over 1.2%. October producer price index data initially lifted stocks but gains reversed as annual prices rose 6.5%, the largest yearly increase since November 2022. Analysts remain positive on AMD's AI chip position, citing its growing portfolio and opportunities from Nvidia's leadership uncertainty. Reports of potential Nvidia CEO Jensen Huang's departure raised questions about its $5 billion Intel investment, now worth over $13 billion. Counterpoint Research expects AMD's data center revenue to reach about $77 billion by 2027, with the segment contributing over 80% of sales.