Advanced Micro Devices (NASDAQ:AMD) Stock Falls 2.1% – Should You Sell?

by · The Markets Daily

Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report)’s stock price fell 2.1% during trading on Thursday. The company traded as low as $560.57 and last traded at $566.42. 16,086,001 shares changed hands during trading, a decline of 49% from the average daily volume of 31,640,891 shares. The stock had previously closed at $578.44.

Trending Headlines about Advanced Micro Devices

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

  • Positive Sentiment: AMD’s data-center revenue reportedly nearly doubled, and its Helios rack-scale systems, EPYC processors and Instinct GPUs are being deployed in Meta’s AI infrastructure. The companies also expanded their relationship through a planned $1 billion equity investment and multigeneration chip collaboration. AMD Expands AI Footprint With Meta
  • Positive Sentiment: Rackspace selected AMD-powered infrastructure for HGS’s private AI deployment, adding another enterprise use case for AMD’s data-center products. HGS Selects Rackspace Technology for Private AI Infrastructure
  • Positive Sentiment: Rakuten Investment Management disclosed a new approximately $283.7 million AMD position, while many large institutions—including JPMorgan, Invesco, FMR and BlackRock—reported adding shares in recent quarters. Rakuten Opens AMD Position
  • Positive Sentiment: Analyst targets remain broadly above the current share price, with a reported six-month median target of $512.50 and several targets ranging from $560 to $700.
  • Neutral Sentiment: AMD is scheduled to report third-quarter results on Nov. 3. Investors will focus on data-center growth, AI accelerator demand, supply constraints and management’s outlook for 2027.
  • Neutral Sentiment: Recent commentary highlights a sharply divided outlook: AMD’s AI growth is accelerating, but its valuation leaves little room for an earnings or guidance disappointment. AMD Earnings Preview
  • Negative Sentiment: Intel’s disappointing fourth-quarter forecast, weak PC-market conditions and margin concerns triggered a broad semiconductor selloff. Investors are questioning whether AMD faces similar demand or supply pressures. AMD Shares Slide After Intel Earnings
  • Negative Sentiment: Several reports argue AMD is priced more aggressively than NVIDIA despite slower expected growth, making the stock vulnerable to profit-taking before earnings. AMD Reports on Nov. 3
  • Negative Sentiment: Insiders have reported 147 open-market sales and no purchases over the past six months, including substantial sales by CEO Lisa Su and other executives. Cathie Wood’s ARK Invest has also continued trimming AMD, adding to near-term sentiment pressure.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Morgan Stanley lifted their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 5th. The Goldman Sachs Group raised their price target on Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a report on Monday, July 6th. Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 1st. Cantor Fitzgerald reissued an “overweight” rating on shares of Advanced Micro Devices in a research note on Monday, October 5th. Finally, Susquehanna boosted their target price on Advanced Micro Devices from $620.00 to $650.00 and gave the company a “positive” rating in a research note on Wednesday. Three research 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 given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $607.57.

Check Out Our Latest Research Report on Advanced Micro Devices

Advanced Micro Devices Trading Down 10.9%

The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market cap of $824.07 billion, a price-to-earnings ratio of 129.77, a price-to-earnings-growth ratio of 5.81 and a beta of 2.45. The firm’s fifty day moving average is $548.29 and its 200-day moving average is $409.20.

Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the business posted $0.48 EPS. The business’s revenue for the quarter was up 50.1% compared to the same quarter last year. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

Insiders Place Their Bets

In other news, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the transaction, the executive vice president owned 160,979 shares in the company, valued at $76,316,924.32. This trade represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,262 shares of the firm’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the sale, the executive vice president owned 353,317 shares of the company’s stock, valued at $191,038,501.90. This trade represents a 4.66% 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. Over the last ninety days, insiders sold 231,100 shares of company stock valued at $114,867,400. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the stock. Chicago Partners Investment Group LLC grew its stake in shares of Advanced Micro Devices by 0.8% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 81,064 shares of the semiconductor manufacturer’s stock valued at $41,893,000 after acquiring an additional 680 shares during the period. Smallwood Wealth Investment Management LLC increased its stake in Advanced Micro Devices by 9.9% in the 3rd quarter. Smallwood Wealth Investment Management LLC now owns 234 shares of the semiconductor manufacturer’s stock worth $143,000 after acquiring an additional 21 shares during the last quarter. 3Chopt Investment Partners LLC grew its position in Advanced Micro Devices by 14.3% in the third quarter. 3Chopt Investment Partners LLC now owns 3,388 shares of the semiconductor manufacturer’s stock worth $2,073,000 after acquiring an additional 424 shares in the last quarter. Rakuten Investment Management Inc. bought a new stake in shares of Advanced Micro Devices in the 3rd quarter worth about $281,754,000. Finally, Serenity Investment Advisors bought a new stake in shares of Advanced Micro Devices during the third quarter worth $222,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

(Get Free Report)

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

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

Featured Stories