Advanced Micro Devices (NASDAQ: AMD) stock is down 4.2% in Friday’s trading, amid concerns about AI company valuations. Despite today’s drop, the stock has risen 89% in 2025. Tech sector confidence is slipping with U.S. consumer confidence at its weakest since 2022, impacting AMD stock. The company forecasts 25% revenue growth for the current quarter and a non-GAAP gross margin of 54.5%.

Investors should consider potential volatility in the AI sector before buying AMD stock. Contract wins with companies like Amazon and OpenAI could drive sales growth. While AMD may gain market share from Nvidia in AI processors, risk-tolerant investors should be prepared for valuation swings. The Motley Fool’s Stock Advisor team has identified 10 top stocks to buy now, excluding AMD. Their picks have historically outperformed the S&P 500 significantly.

Read more at NASDAQ: Why AMD Stock Is Sinking Again Today