AMD (Advanced Micro Devices) is experiencing its weakest monthly stock performance in more than two years, with shares falling nearly 16% in November. Investor sentiment has been pressured by growing competition and rising costs, despite the company reporting strong quarterly results. Concerns intensified after reports that Meta is considering using Google’s Tensor Processing Unit (TPU) chips in its data centers, potentially diverting demand away from both AMD and Nvidia. Analysts see this as a modest but notable competitive challenge.

The decline comes after AMD posted record quarterly revenue of $9.25 billion, marking a 36% increase from the previous year. CEO Lisa Su projected rapid growth in the data-center segment, forecasting an average expansion rate of nearly 80% annually, driven by increasing demand for AI accelerators. Shares briefly rebounded, closing at $214.24 on Wednesday, and remain up 77% year-to-date.

Additional pressures include rising memory-chip prices, with DRAM contract pricing up 171% from last year as manufacturers focus on high-end AI components. Broader valuation concerns have also affected technology stocks, following central-bank warnings that investor optimism around AI could be overstated.