Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 5.7% – Here’s Why

by · The Cerbat Gem

Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report) dropped 5.7% during trading on Wednesday. The company traded as low as $567.00 and last traded at $570.82. Approximately 21,918,225 shares changed hands during trading, a decline of 32% from the average session volume of 32,290,572 shares. The stock had previously closed at $605.53.

More Advanced Micro Devices News

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

  • Positive Sentiment: Arete raised its AMD price target to $612 from $540, signaling continued confidence in the company’s AI accelerator and data-center growth prospects. Arete Adjusts Price Target on Advanced Micro Devices
  • Positive Sentiment: AMD’s long-term bull case remains tied to expanding AI demand, improving software that challenges Nvidia’s CUDA ecosystem, and billion-dollar commitments from major customers. Analysts also see opportunities beyond GPUs, including data-center processors and rack-scale infrastructure. Why AMD’s CUDA-Challenging AI Playbook Makes It the Ultimate Asymmetric Buy
  • Positive Sentiment: AMD’s credit support agreement for Fermi’s 222-megawatt Texas power lease could help advance AI data-center infrastructure, although the arrangement also raises questions about customer liquidity and execution. AMD’s Support Could Help Fermi Stock

Wall Street Analyst Weigh In

AMD has been the topic of a number of recent analyst reports. DA Davidson boosted their price objective on Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. William Blair restated a “market perform” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Rosenblatt Securities restated a “buy” rating and issued a $700.00 target price on shares of Advanced Micro Devices in a research note on Tuesday, September 29th. Weiss Ratings raised Advanced Micro Devices from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Finally, CLSA reiterated an “outperform” rating and set a $710.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, September 9th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $603.51.

View Our Latest Stock Report on AMD

Advanced Micro Devices Trading Down 2.3%

The business has a 50 day moving average of $536.11 and a 200 day moving average of $471.82. The firm has a market capitalization of $897.09 billion, a price-to-earnings ratio of 141.27, a PEG ratio of 5.90 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the prior year, the firm posted $0.48 earnings per share. The company’s quarterly revenue was up 50.1% on a year-over-year basis. As a group, research analysts predict that Advanced Micro Devices, Inc. will post 6.45 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Lisa T. Su sold 25,000 shares of Advanced Micro Devices stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the transaction, the chief executive officer directly owned 74,211 shares of the company’s stock, valued at $37,609,392.69. This trade represents a 25.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the completion of the sale, the senior vice president owned 26,623 shares of the company’s stock, valued at approximately $13,010,393.87. This represents a 10.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 213,838 shares of company stock worth $105,533,836 over the last quarter. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds have recently modified their holdings of the business. First Citizens Financial Corp raised its stake in shares of Advanced Micro Devices by 3.4% in the 3rd quarter. First Citizens Financial Corp now owns 490 shares of the semiconductor manufacturer’s stock valued at $300,000 after purchasing an additional 16 shares during the period. Fearless Solutions LLC dba Best Invest lifted its holdings in shares of Advanced Micro Devices by 1.5% in the third quarter. Fearless Solutions LLC dba Best Invest now owns 1,174 shares of the semiconductor manufacturer’s stock valued at $718,000 after purchasing an additional 17 shares in the last quarter. Private Client Services LLC boosted its position in shares of Advanced Micro Devices by 1.7% during the third quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock worth $660,000 after buying an additional 18 shares during the period. Box Hill Private Wealth LLC boosted its position in shares of Advanced Micro Devices by 2.5% during the third quarter. Box Hill Private Wealth LLC now owns 794 shares of the semiconductor manufacturer’s stock worth $486,000 after buying an additional 19 shares during the period. Finally, Bullock Wealth Management Group boosted its position in shares of Advanced Micro Devices by 0.6% during the third quarter. Bullock Wealth Management Group now owns 3,321 shares of the semiconductor manufacturer’s stock worth $2,045,000 after buying an additional 20 shares during the period. Institutional investors and hedge funds own 71.34% of the company’s stock.

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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