Advanced Micro Devices (NASDAQ:AMD) Trading Down 3.5% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price fell 3.5% on Wednesday . The stock traded as low as $509.57 and last traded at $529.14. 27,709,056 shares traded hands during trading, a decline of 25% from the average session volume of 36,835,059 shares. The stock had previously closed at $548.13.

Key Advanced Micro Devices News

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

• Positive Sentiment: Several Wall Street firms remained constructive on AMD, including price-target increases from BNP Paribas, KeyBanc, Rosenblatt, UBS, and Bank of America, reflecting confidence in AMD’s long-term AI and data-center growth story.
• Positive Sentiment: AMD announced Alan Smith as its newest Corporate Fellow, a signal of continued investment in GPU architecture and AI computing expertise. Article Title
• Neutral Sentiment: Analysts and market commentators continue to debate AMD’s near-term setup, with some saying the stock is stretched after its strong rally while others argue the AI inference and server CPU markets could still support further upside.
• Neutral Sentiment: Technical analysis pieces suggest AMD may be in a pullback phase after breaking below channel support, so traders are watching key moving averages for signs of stabilization.
• Negative Sentiment: The main drag on AMD has been a sector-wide risk-off move in chip stocks as investors question the durability of the AI capex boom, which is pressuring sentiment across semiconductor names.
• Negative Sentiment: AMD also declined despite upbeat analyst commentary, showing that near-term market momentum is being outweighed by broader selling and profit-taking in AI winners.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Oppenheimer cut Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a report on Wednesday, May 6th. Stifel Nicolaus lifted their price target on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a “buy” rating in a report on Friday, July 10th. Weiss Ratings raised shares of Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, May 6th. Needham & Company LLC raised Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Finally, UBS Group reaffirmed a “buy” rating and issued a $700.00 price target on shares of Advanced Micro Devices in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $468.65.

Advanced Micro Devices Trading Down 5.3%

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $816.83 billion, a P/E ratio of 164.24, a PEG ratio of 1.55 and a beta of 2.47. The business has a 50 day moving average price of $503.08 and a 200 day moving average price of $328.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company’s revenue for the quarter was up 37.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.96 earnings per share. Analysts anticipate that Advanced Micro Devices, Inc. will post 6.18 EPS for the current year.

Insider Activity

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company’s stock, valued at $1,334,572,400.31. The trade was a 4.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the transaction, the director directly owned 87,173 shares in the company, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 341,630 shares of company stock worth $152,147,456. 0.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices during the 4th quarter worth about $25,000. Sarver Vrooman Wealth Advisors acquired a new stake in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Basepoint Wealth LLC bought a new stake in shares of Advanced Micro Devices during the fourth quarter worth approximately $30,000. Finally, Graney & King LLC bought a new stake in shares of Advanced Micro Devices during the first quarter worth approximately $31,000. 71.34% of the stock is 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.