Shares of Advanced Micro Devices (AMD Quick QuoteAMD - Free Report) soared 8% in extended trading session on Nov. 3 (as cited in CNBC), following its better-than-expected third-quarter 2026 results. However, the stock lost its steam yesterday, plunging 17.3% despite comfortably beating Wall Street’s revenue and earnings estimates, as a broader technology-sector sell-off following the release of the U.S. midterm election results weighed on investor sentiment. 

This solid pullback in AMD’s share price might offer an opportune moment for investors eager to reap the benefits of the company’s soaring revenue growth from its data center business. AMD’s Data center segment registered record revenues of $8.5 billion in the third quarter, reflecting 97% year-over-year growth.  

However, factors like the 151% year-over-year surge in AMD’s capital expenditures, along with constraints in advanced packaging capacity and volatility in HBM4 memory pricing, might pose a cause of concern and thereby dampen investor confidence. This might even push some investors toward safer alternatives. 

At the same time, Democrats' wins in Congress have revived talk of tighter regulation around data center buildouts, which could weigh on near-term sentiment for companies with heavy data center exposure.

Against this backdrop, investors seeking to capitalize on AMD’s growth potential while mitigating company-specific risks may consider technology-focused exchange-traded funds (ETFs) with significant exposure to AMD rather than investing directly in the stock.

This will let investors participate in AMD's innovation cycle and the upside of other tech leaders, while smoothing out the single-stock volatility that a high-valuation, capital-intensive name like AMD can deliver. 

But before diving straight into these ETFs, let us check AMD’s overall performance in the third quarter in terms of other metrics.

A Brief Analysis of AMD’s Q3 Results

AMD’s third-quarter earnings beat the Zacks Consensus Estimate by 7.7%, while revenues topped the mark by 1.9%. 

Its data center revenues nearly doubled year over year, driven by record server revenues, robust demand for AMD’s fifth-generation EPYC processors and record data center AI revenues.

However, revenues from its Client and Gaming segment went down 8% year over year due to lower semi-custom and graphics sales. 

PC market sell-through for AMD softened late in the quarter as elevated memory and component costs began dampening consumer demand.

As per AMD’s earnings call transcript, during the third quarter, cloud hyperscalers expanded its infrastructure by deploying substantial volumes of AMD EPYC servers to support both internal operations and public cloud services. In particular, its latest "Turin" architecture has become the most widely adopted EPYC generation in the public cloud, powering over 540 instances globally across major cloud providers. 

Meanwhile, AMD launched ROCm 10 in the third quarter with major enhancements for production deployments at scale, including faster start-up across large GPU clusters and greater resilience for long-running workloads. The company also began volume shipments of its MI455X accelerators during the quarter.

Looking ahead, AMD expects Helios deployments to increase substantially in the fourth quarter of 2026 as production continues to ramp up and HPE, Dell, Lenovo, Super Micro and other OEM and ODM partners begin shipping systems.

Looking ahead to 2027, the company expects total PC unit shipments to decline by a double-digit percentage. Nevertheless, it anticipates outperforming the broader market, supported by its Ryzen product roadmap and expanding commercial footprint.

AMD-Heavy ETFs to Buy

iShares Semiconductor ETF (SOXX Quick QuoteSOXX - Free Report)    

This fund, with net assets worth $37.56 billion, offers exposure to 30 companies across the semiconductor value chain, including those driving innovation in AI and benefiting from capital investments in digital infrastructure. Of these, AMD enjoys the first spot, holding 9.35% of the fund’s assets.

SOXX has surged 31.4% year to date. This fund charges 33 basis points (bps) in fees. It traded at a good volume of 66.70 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy). 

Invesco AI and Next Gen Software ETF (IGPT Quick QuoteIGPT - Free Report)    

This fund, with a market value of $1.08 billion, includes 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the second spot, holding 9.01% of the fund’s assets. Meta Platforms (META Quick QuoteMETA - Free Report) holds the first spot in this fund, with a 9.08% weightage. 

IGPT has rallied 22.7% year to date. This fund charges 57 bps in fees.  It traded at a volume of 0.66 million shares in the last trading session.  This fund holds a Zacks ETF Rank #1.

Invesco Semiconductors ETF (PSI Quick QuotePSI - Free Report)    

This fund, with a market value of $1.84 billion, offers exposure to 31 semiconductor companies. Of these, AMD carries the third spot, carrying 6.14% of the fund’s assets. Texas Instruments holds the first spot in this fund, with a 7.24% weightage. 

PSI has rallied 22.8% year to date. This fund charges 55 bps in fees. It traded at a volume of 3.26 million shares in the last trading session.  This fund currently carries a Zacks ETF Rank #2 (Buy).

VanEck Semiconductor ETF (SMH Quick QuoteSMH - Free Report)   

This fund, with total assets worth $57.70 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, AMD carries the fifth spot, holding 5.36% of the fund’s assets. NVIDIA (NVDA Quick QuoteNVDA - Free Report) holds the first spot in this fund, with a 20.46% weightage. 

SMH has rallied 24.3% year to date. This fund charges 35 bps in fees.  It traded at a good volume of 28.81 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 at present.