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AMD Shares Slide on Jobs Cuts Report and AI Valuation Jitters

Investors recalibrate expectations for highfliers following a weak labor snapshot.

Overview

  • Advanced Micro Devices fell 5.6% as of 3 p.m. ET Thursday, outpacing losses in major indexes.
  • The S&P 500 declined 0.8% and the Nasdaq Composite dropped 1.3% during the session.
  • Challenger, Gray & Christmas reported more than 150,000 U.S. job cuts in October, with reductions tied to cost-cutting and AI-driven efficiencies.
  • Market commentary highlighted growing caution toward stretched, growth-dependent valuations for AI-related stocks.
  • Despite the pullback, AMD shares have doubled in 2025 trading, and the company has reportedly secured AI contracts with OpenAI and Amazon.