NEW YORK, November 7, 2026 — Semiconductor stocks staged a sharp rebound Friday after AI cloud provider IREN posted a revenue beat and a $20.3 billion backlog, calming fears that Democratic midterm victories would stall data-center construction. Advanced Micro Devices surged 12 percent, recouping much of Thursday’s 17.3 percent plunge, while Micron Technology climbed 6 percent alongside gains in Applied Materials and Seagate Technology.
The Thursday Rout
The selloff hit on November 5, two days after AMD reported record quarterly results. Shares dropped 17.3 percent against a 4.4 percent decline in the S&P 500, the steepest single-session fall for the chipmaker since February. All five peers on AMD’s comparison list fell more than 9 percent. Marvell Technology dropped 16.4 percent, while Nvidia, Intel, Broadcom and Qualcomm slid between 9.3 and 10.4 percent. The technology sector fund XLK lost 8 percent and the Nasdaq Composite fell 5.5 percent.
Market reports tied the rout to Democratic wins in several midterm contests, including states hosting major data-center projects. Investors feared shifts in local priorities could slow new facility construction and curb the AI infrastructure spending that has driven chip demand.
IREN Earnings Shift the Narrative
After Thursday’s close, IREN reported quarterly revenue of $228 million, beating estimates, and a contracted backlog of $20.3 billion. The company also said it signed agreements for older Nvidia H100 chips at twice the rates of previous deals, a signal that demand for AI compute capacity remains intense.
The results lifted the entire memory and equipment chain on Friday. Micron rose 6 percent after crashing 17 percent the day before. Seagate Technology added 2 percent and Applied Materials jumped 7 percent. Nvidia shares also moved higher ahead of its November 17 earnings report.
Valuation Disconnect
Even after Friday’s bounce, Micron traded at just 4.7 times forward earnings, roughly a third of its five-year average of 14 times. That multiple sits near levels seen at the last memory cycle peak in 2017 and 2018. Seagate, by comparison, fetched 13 times forward earnings after reporting a 61 percent revenue jump to $4.2 billion and guiding the December quarter to $4.8 billion.
Micron says more than 75 percent of its 2027 output is already committed. Analysts project earnings per share of $207.76 for 2028, though UBS warns those estimates could fall quickly if data-center limits materialize. The bank estimates construction pauses could threaten 30 percent of expected U.S. data-center capacity additions in 2028.
AMD Fundamentals Stay Strong
AMD’s third-quarter revenue climbed 44.7 percent year over year to $13.4 billion, topping the high end of guidance. The data-center segment nearly doubled to $8.5 billion, driven by EPYC server processors and Instinct AI accelerators. Management guided fourth-quarter revenue of about $17 billion, a 66 percent increase, and expects 2027 revenue growth above 80 percent.
Free cash flow dropped to $554 million from $1.9 billion a year earlier as the company spent heavily on inventory, equipment and capacity for the data-center business. Shares had gained 1 percent on November 4, the session immediately following the earnings call, before the midterm-driven selloff hit the next day.
Next Catalysts
The calendar remains crowded. Applied Materials reports November 12; DRAM accounted for 26 percent of its chip-equipment revenue in the July quarter, up from 22 percent a year earlier. Nvidia reports November 17, having guided January-quarter gross margin of 71 to 72 percent citing rising memory prices. Micron reports December 16, with management calling 86.25 percent guided gross margin the floor for fiscal 2027.
Sources
- AMD Stock Soars After Thursday's Rout. AI Fears Take a Back Seat
- Micron Soars 6% as Memory Stocks Bounce Back From Thursday’s 17% Crash
- What Just Happened To AMD Stock?
Photo: Fuzheado (CC BY 4.0)
