AMD stock sank 7% amid a new round of bearish macroeconomic data. Concerns that valuations for artificial intelligence (AI) companies could be overly elevated are also factoring into the pullback.

Challenger, Gray & Christmas published new jobs data this morning that showed U.S. employers had cut more than 150,000 jobs in October. The employment reductions were driven by cost-cutting initiatives and efficiency gains spurred by AI. The jobs cut marked the biggest monthly employment reduction in over 20 years.

While AI-driven efficiency improvements could suggest some tailwinds for AMD and other artificial intelligence players, sell-offs for the broader market today highlight concerns about valuations for artificial intelligence companies and the broader market.

What's next for AMD?

AMD has recently been scoring some significant wins in the AI space, securing contracts with major tech players including OpenAI and Amazon. On the other hand, valuation dynamics don't exist in a vacuum -- and bearish momentum has been picking up steam recently across the market.

On the heels of incredible rallies this year, investors and analysts have been adopting more cautious positioning when it comes to AI stocks. Despite a significant pullback today, AMD stock has still managed to double across 2025's trading. With signs that macroeconomic pressures could intensify and broader concerns about the valuation multiples being applied to AI stocks, AMD's share price could see more volatility in the near term.