AMD stock crashed 3.7% to $250.05 despite posting record Q3 2025 earnings. The chipmaker reported $9.25 billion in revenue, up 36% year-over-year, and $1.20 EPS, beating forecasts. Strong AI chip demand and new deals with OpenAI and Oracle pushed data center revenue to $4.3 billion. Yet, investors booked profits after massive gains this year. AMD’s $406 billion market cap and high 150.63 P/E ratio reflect steep valuation worries. Analysts still see rack-scale AI systems as AMD’s 2026 growth catalyst.