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- AI stock AMD beat on earnings and AI stock Super Micro missed — but both stocks are down premarket.
- An ADP jobs report shows 42,000 payroll gains in October, reversing September’s decline.
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The Vanguard S&P 500 ETF (NYSEMKT: VOO) suffered its steepest selloff in months yesterday, down 1.2%, as investor worries over the rich valuations of AI stocks came to the fore. Selling seems set to moderate as Wednesday dawns, but the selling’s still there; premarket, the ETF looks set to open down 0.1%.
Two AI stocks reporting after Tuesday’s close may be adding to the pressure.
The first is Advanced Micro Devices (Nasdaq: AMD). The semiconductor giant beat earnings by three cents last night, reporting $1.20 per share on sales of $9.25 billion. CEO Dr. Lisa Su said AMD had “an outstanding quarter, with record revenue and profitability reflecting broad based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators.” She also guided investors to expect $9.6 billion in Q4 revenue, $400 million ahead of analyst estimates.
Curiously, however, investors seem unimpressed, and AMD stock is trading down nearly 3% premarket.
The news is even worse for investors in AI server-maker Super Micro Computer (Nasdaq: SMCI), which missed on its earnings by four cents last night. Profit for the fiscal first quarter 2026 came in light at $0.35 per share, and revenue was nearly $800 million short of forecasts at $5 billion.
Management insists Super Micro is still growing, however, citing a “rapidly expanding order book” with “more than $13B in Blackwell Ultra orders,” and predicting “at least” $36 billion in revenue for fiscal 2026.
Despite the optimistic promises, Super Micro stock is down nearly 8% premarket.
Employment report
In happier news, HR company Automatic Data Processing (Nasdaq: ADP) — practically our only source for jobs data these days with the government shut down — reported private payrolls grew by 42,000 in October. This reverse September’s job losses and, while still not a strong growth number, was better than most economists predicted for October.