Stocks are little changed, but AMD and other tech stocks remain under pressure: Live updates
Traders work at the New York Stock Exchange on Nov. 3 2025.
NYSE
Stocks were relatively unchanged on Wednesday as valuation concerns around the artificial intelligence trade persisted after chipmaker Advanced Micro Devices posted its latest quarterly results.
The S&P 500 and Dow Jones Industrial Average teetered around the flatline. The Nasdaq Composite advanced 0.1%.
AMD fell 1% after it issued margin guidance that only met analyst expectations, leaving investors wanting more. The company did post third-quarter earnings and revenue that beat analyst expectations.
That move comes after Palantir dropped about 8% on Tuesday, as investors worried that valuations for the software company — and the broader AI theme — have gotten untenable. After all, Palantir is trading at more than 200 times forward earnings. The stock extended its losses Wednesday, dropping more than 2%.
AMD trades at a less-lofty 41 times forward earnings. However, that’s still well above the S&P 500’s 23 multiple.
Super Micro Devices, another AI-related stock, pulled back 3% on disappointing fiscal first-quarter results. Fellow AI play Arista Networks was down 6% following its latest quarterly results as well.
Yet, many investors remain optimistic that the long-term trend is still favorable for tech stocks, even if there is a near-term pullback, given the strength of spending in AI infrastructure.
“I don’t think that this is concerning today,” Liz Young Thomas, head of investment strategy at SoFi, said on CNBC’s “Closing Bell” on Tuesday. “I do think that as far as we’ve gotten, this extended, is concerning eventually, but I still think that we’re going to run into year end.”
“I still think the chase is on. I still think the large cap love affair is on. And that’s probably not going to change over the longer term period,” she continued. “But today, I think we were looking for an excuse.”
On the economic front, investors continued to seek clarity using alternative data in lieu of government reports. ADP reported Wednesday that private companies saw their payrolls rise by 42,000 in October. That figure beat the Dow Jones forecast for a gain of 22,000 and comes after September marked a drop of 29,000 in September.
Investors will additionally be paying attention to the Supreme Court hearing arguments Wednesday regarding President Donald Trump’s tariffs, specifically whether the president had the authority to impose such duties under the International Emergency Economic Powers Act, or IEEPA. Treasury Secretary Scott Bessent has said that if the high court rules against the administration, there are still “lots of other authorities that can be used.”
