Advanced Micro Devices (NASDAQ:AMD) Trading Down 5.8% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price fell 5.8% during trading on Tuesday . The stock traded as low as $506.81 and last traded at $519.85. 29,294,034 shares were traded during mid-day trading, a decline of 23% from the average session volume of 37,889,266 shares. The stock had previously closed at $551.63.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s acquisition of MEXT is being viewed as a strategic boost to its AI and memory-software efforts, which could strengthen its long-term growth story and support higher valuation multiples. With Its MEXT Acquisition, Advanced Micro Devices Stock Could Rally to Higher Highs
• Positive Sentiment: Several articles highlighted AMD’s expanding AI position, including stronger data-center CPU demand and rising EPYC adoption, reinforcing optimism about the company’s long-term AI revenue opportunity. Why AMD’s AI Position Is Expanding
• Positive Sentiment: Wall Street sentiment remains constructive, with more than 40 analysts reportedly rating AMD a buy and recent price targets clustered well above current levels. Over 40 Analysts Rate AMD a Buy, Here’s Why We Agree
• Positive Sentiment: Reatan’s global launch of an AI mini PC powered by AMD Ryzen AI 9 HX 470 adds another product win for AMD’s consumer AI chip lineup. Next-Gen AI Powerhouse: Reatan Announces Global Launch of Reatan X8 Mini PC Powered by AMD Ryzen AI 9 HX 470 Processor
• Neutral Sentiment: Analysts and market commentators continue debating whether AMD’s sharp rally has run ahead of fundamentals, suggesting the stock may remain volatile even as AI demand stays strong. Massive News: AMD AI Growth Sparks $120B Market Ambition
• Negative Sentiment: AMD is being dragged lower by a broad chip selloff, with semiconductor peers also under pressure amid profit-taking and weaker risk appetite. Nvidia, AMD, and Micron Slide as Global AI Stock Sell-Off Hits Chip Sector
• Negative Sentiment: Reports also flagged insider selling over the past few months, which may add to investor caution even though it does not appear to be the main driver of today’s decline. Sell alert? AMD insiders dumped $60 million worth of stock since June started

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Bank of America upped their price target on Advanced Micro Devices from $500.00 to $560.00 and gave the company a “buy” rating in a research report on Thursday, June 11th. TD Cowen lifted their target price on Advanced Micro Devices from $500.00 to $600.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Stifel Nicolaus upped their target price on Advanced Micro Devices from $320.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Piper Sandler reissued an “overweight” rating on shares of Advanced Micro Devices in a research report on Wednesday, February 25th. Finally, The Goldman Sachs Group upgraded shares of Advanced Micro Devices from a “buy” rating to a “buy” rating in a report on Friday, June 12th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $430.68.

Advanced Micro Devices Stock Down 5.8%

The business has a 50 day simple moving average of $423.46 and a 200 day simple moving average of $288.05. 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 stock has a market cap of $847.67 billion, a PE ratio of 170.44, a P/E/G ratio of 1.58 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. The company had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business’s quarterly revenue was up 37.8% on a year-over-year basis. During the same period last year, the business earned $0.96 EPS. On average, equities research analysts forecast that Advanced Micro Devices, Inc. will post 6.15 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, Director Nora Denzel sold 8,626 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the transaction, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This trade represents a 9.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president owned 105,222 shares of the company’s stock, valued at $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 378,032 shares of company stock valued at $161,876,596 in the last ninety days. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Large investors have recently bought and sold shares of the business. Jefferies Financial Group Inc. grew its position in shares of Advanced Micro Devices by 6,228.8% during the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock worth $65,966,000 after buying an additional 303,154 shares during the period. Williamson Legacy Group LLC bought a new position in Advanced Micro Devices during the fourth quarter worth $1,118,000. Thoroughbred Financial Services LLC grew its holdings in Advanced Micro Devices by 8.8% in the fourth quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock worth $7,030,000 after purchasing an additional 2,654 shares during the period. Valtinson Bruner Financial Planning LLC bought a new stake in Advanced Micro Devices in the fourth quarter valued at $1,523,000. Finally, Weaver Consulting Group acquired a new position in shares of Advanced Micro Devices during the fourth quarter valued at about $246,000. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Company Profile

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.