Summary

  • Nvidia and AMD shares declined after AI hardware announcements at CES 2026 and October events failed to deliver near-term revenue catalysts.
  • S&P 500 Q3 earnings growth expectations rose three percentage points, with analysts forecasting 31% year-over-year gains driven by AI-related firms.
  • AMD's upcoming MI450X targets a narrower hardware gap with Nvidia, yet investors remain focused on immediate revenue visibility.

Nvidia and AMD shares dropped after their latest AI hardware reveals at CES 2026 and in October. Investors focused on the lack of quick revenue gains instead.

That reaction highlights a clear market priority right now.

Context

S&P 500 Q3 earnings growth expectations have risen by three percentage points heading into earnings season, per LSEG analyst Tajinder Dhillon. Analysts on average expect S&P 500 earnings to rise about 31% year-over-year for the third quarter, with AI-related companies accounting for most of the gains.

AMD and Nvidia rolled out their latest hardware updates across October 2026 and CES 2026. Share price reactions showed limited immediate catalyst effect, as buyers weighed the timing of any revenue upside.

Details

AMD's upcoming MI450X will narrow the hardware gap with Nvidia. Analysts reiterated a Buy rating and raised full-year revenue estimates to $52.3 billion.

AMD and Microsoft are expanding their AI infrastructure partnership. The collaboration spans Helios deployments, new Azure instances powered by EPYC Venice, and advanced AMD solutions.

  • AMD AI product timeline includes the MI450X launch as a key step toward closing performance differences with Nvidia.
  • Broader market focus stays on whether S&P 500 Q3 results can sustain the AI-driven earnings surge already priced in.

"S&P 500 Q3 earnings growth expectations have risen by three percentage points heading into earnings season."

, Tajinder Dhillon (LSEG)

Outlook

The next test for AMD AI and Nvidia earnings comes with AMD's July 2026 Advancing AI event. Investors may still reward longer-term roadmap progress despite the current near-term caution.