Advanced Micro Devices (AMD) Stock Plummeted 13% Last Week. Should You Buy the Dip Before Nov. 3?

AMD fell 13% last week as investors weighed AI funding challenges and a possible slowdown in data center chip demand, setting up a charged Nov. 3 earnings report.

The selloff leaves AMD trading at a P/E ratio of 91.8, more than three times NVDA's 27.1. That gap is the core of the debate: AMD's price assumes flawless execution, while NVDA carries a far lower multiple.

The fundamentals are not the problem. AMD has closed the performance gap with NVDA through its MI450 GPUs, and the source points to strong growth prospects. The analyst behind the call stays cautious anyway, citing the elevated valuation and uncertainty across the AI industry.

Interpretation: a 13% drop has not made AMD cheap by this measure. A stock at 91.8 times earnings has little room for a guidance miss or a softer data center outlook, and the same AI funding worries that drove last week's decline could resurface in management commentary.