Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 1.5% – Should You Sell?

by · The Cerbat Gem

Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report)’s share price fell 1.5% on Thursday. The stock traded as low as $530.09 and last traded at $562.23. Approximately 28,481,318 shares changed hands during trading, a decline of 12% from the average daily volume of 32,273,617 shares. The stock had previously closed at $570.82.

Key Headlines Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

  • Positive Sentiment: Arete raised its AMD price target to $612 from $540, while recent commentary highlighted the company’s expanding data-center business, AI accelerator opportunity and open Helion rack-scale architecture. Arete Adjusts Price Target on Advanced Micro Devices
  • Positive Sentiment: AMD’s credit-support agreement for Fermi’s Texas data-center power lease is viewed as a potential AI infrastructure catalyst, although Fermi still faces liquidity and lease-related risks. AMD’s Support Could Help Fermi Stock
  • Neutral Sentiment: ETF investors were net sellers of AMD on October 14, adding to short-term trading pressure but offering little insight into the company’s operating outlook. ETFs Are Net Sellers of AMD
  • Negative Sentiment: A broad semiconductor selloff intensified after a Qualcomm jury verdict, with Arm, AMD and Taiwan Semiconductor declining together. Investors are questioning whether AI infrastructure spending can sustain current expectations, particularly as elevated interest rates pressure richly valued growth stocks. Arm and AMD Fall as Qualcomm Verdict Adds to Chip Selloff
  • Negative Sentiment: Analysts and investors are also reassessing AMD’s elevated valuation, AI financing risks and the sustainability of extremely high data-center spending. Reports of widespread insider selling may further weigh on sentiment, even though institutional ownership remains substantial. AMD Slides as Chip Selloff Continues

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Mizuho upped their price objective on Advanced Micro Devices from $580.00 to $705.00 and gave the company an “outperform” rating in a research report on Tuesday, October 6th. Wells Fargo & Company lifted their price objective on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. William Blair reiterated a “market perform” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. Citigroup boosted their target price on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. Finally, The Goldman Sachs Group boosted their target price on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $603.51.

Get Our Latest Analysis on AMD

Advanced Micro Devices Trading Down 6.0%

The business has a 50 day simple moving average of $537.02 and a two-hundred day simple moving average of $472.22. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a market cap of $863.17 billion, a PE ratio of 135.93, a price-to-earnings-growth ratio of 5.81 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The business’s revenue for the quarter was up 50.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.48 earnings per share. On average, analysts forecast that Advanced Micro Devices, Inc. will post 6.45 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total value of $1,462,649.17. Following the sale, the senior vice president directly owned 26,623 shares of the company’s stock, valued at approximately $13,010,393.87. This trade represents a 10.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. This trade represents a 2.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 213,838 shares of company stock worth $105,533,836 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of AMD. BlackRock Inc. boosted its holdings in shares of Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the last quarter. State Street Corp increased its holdings in shares of Advanced Micro Devices by 2.9% during the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after buying an additional 2,149,563 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Advanced Micro Devices by 15.9% during the 4th quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer’s stock worth $3,313,758,000 after buying an additional 2,124,867 shares during the last quarter. Bank of America Corp DE acquired a new stake in shares of Advanced Micro Devices during the 2nd quarter worth $7,022,226,000. Finally, Jennison Associates LLC increased its holdings in shares of Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after buying an additional 545,575 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Company Profile

(Get Free Report)

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.

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