Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.6% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 1.6% on Tuesday . The stock traded as low as $393.36 and last traded at $414.05. 38,514,548 shares traded hands during mid-day trading, a decline of 2% from the average session volume of 39,372,969 shares. The stock had previously closed at $420.99.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD announced production ramp of its 6th Gen EPYC “Venice” chips on TSMC’s 2nm technology, a major manufacturing milestone that could strengthen its competitiveness in servers and AI infrastructure.
• Positive Sentiment: AMD said it will invest more than $10 billion in Taiwan’s AI ecosystem to expand advanced packaging and manufacturing partnerships, including work with ASE, SPIL and other suppliers, which should help scale future AI products. Article Title
• Positive Sentiment: Reuters reported Amkor is working with AMD on advanced packaging, reinforcing the idea that AMD is broadening its manufacturing ecosystem to support next-gen chip launches. Article Title
• Positive Sentiment: Analysts and market commentary remain constructive, with several notes highlighting AMD’s expanding AI CPU opportunity and the potential for continued upside as the AI trade broadens beyond Nvidia. Article Title
• Positive Sentiment: Bank of America and other firms have recently named AMD among their preferred AI chip stocks, which can help sentiment and support the stock’s valuation. Article Title
• Neutral Sentiment: Some articles frame the stock as expensive after a huge run, suggesting investors may be debating valuation even as the fundamental AI narrative improves.
• Negative Sentiment: AMD also got pulled lower in some broader chip-trade weakness after Nvidia’s earnings-related volatility, showing the stock can move with the semiconductor group rather than on AMD-specific news alone. Article Title

Wall Street Analyst Weigh In

AMD has been the topic of several research reports. HSBC lowered shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and raised their price target for the company from $335.00 to $340.00 in a report on Monday, May 4th. JPMorgan Chase & Co. boosted their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Royal Bank Of Canada increased their price objective on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the stock a “sector perform” rating in a research report on Wednesday, May 6th. KeyCorp raised their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Evercore restated an “outperform” rating and set a $579.00 target price on shares of Advanced Micro Devices in a report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, Advanced Micro Devices has an average rating of “Moderate Buy” and a consensus target price of $410.00.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company’s 50-day simple moving average is $292.17 and its 200-day simple moving average is $245.31. The company has a market cap of $733.10 billion, a price-to-earnings ratio of 147.41, a P/E/G ratio of 1.33 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business’s revenue for the quarter was up 37.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.96 earnings per share. On average, equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Activity

In other news, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the sale, the executive vice president directly owned 1,236,037 shares of the company’s stock, valued at approximately $432,612,950. The trade was a 2.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares of the company’s stock, valued at $46,759,604.58. This represents a 18.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 309,598 shares of company stock worth $105,644,316 over the last ninety days. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Clal Insurance Enterprises Holdings Ltd lifted its position in shares of Advanced Micro Devices by 12.8% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock worth $43,000 after purchasing an additional 24 shares during the last quarter. CLG LLC increased its holdings in Advanced Micro Devices by 3.1% in the first quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock valued at $205,000 after buying an additional 30 shares during the last quarter. Columbia Bank raised its stake in Advanced Micro Devices by 0.7% during the first quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock valued at $1,055,000 after buying an additional 34 shares in the last quarter. Evolution Wealth Management Inc. raised its stake in Advanced Micro Devices by 11.0% during the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock valued at $72,000 after buying an additional 35 shares in the last quarter. Finally, Focused Wealth Management Inc lifted its holdings in Advanced Micro Devices by 2.7% during the 1st quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock worth $291,000 after buying an additional 37 shares during the last quarter. Institutional investors own 71.34% of the company’s stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.