Advanced Micro Devices (NASDAQ:AMD) Trading Down 5.2% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was down 5.2% during trading on Monday . The stock traded as low as $476.93 and last traded at $494.95. Approximately 31,599,501 shares changed hands during trading, a decline of 13% from the average daily volume of 36,295,992 shares. The stock had previously closed at $521.95.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD’s partnership with Microsoft is being viewed as validation of its transition from selling individual chips to providing complete AI infrastructure systems. The company’s Helios rack-scale platform is positioned as a direct alternative to Nvidia’s integrated systems. AMD Microsoft partnership article
• Positive Sentiment: AMD and Cerebras announced a disaggregated inference architecture designed to improve AI efficiency and serve enterprise customers, including Microsoft Azure and Anthropic. The initiative supports AMD’s broader strategy of combining CPUs, accelerators and networking into full-platform solutions. AMD and Cerebras hardware article
• Positive Sentiment: Several reports argue that expanding hyperscaler AI infrastructure spending, growing inference demand and customer interest in a second supplier to Nvidia could allow AMD to exceed CEO Lisa Su’s long-term $100 billion revenue goal ahead of schedule. AMD revenue outlook article
• Positive Sentiment: Wedbush raised its AMD price target to $600 from $450 and maintained an Outperform rating ahead of earnings. Other analysts also remain constructive following AMD’s Advancing AI event. AMD analyst outlook article
• Neutral Sentiment: AMD is scheduled to report quarterly results next week. Investors are weighing strong prior growth and AI demand against elevated expectations; the stock’s valuation leaves limited room for disappointment.
• Negative Sentiment: The semiconductor sector is experiencing a broad selloff tied to concerns that AI infrastructure spending and chip demand may not justify current valuations. Rising GPU prices are also raising questions about demand sustainability. AMD semiconductor selloff article
• Negative Sentiment: Reports that China is advancing domestic DUV lithography and memory production are adding competitive and geopolitical pressure across chip stocks, including AMD. China semiconductor production article
• Negative Sentiment: Recent insider-trading data shows AMD executives have reported sales but no open-market purchases over the past six months, potentially reinforcing profit-taking concerns after the stock’s substantial rally.

Analyst Ratings Changes

A number of research firms recently weighed in on AMD. Wolfe Research set a $450.00 target price on Advanced Micro Devices and gave the stock an “outperform” rating in a research report on Monday, June 15th. Wall Street Zen raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Monday, July 20th. KeyCorp upped their price objective on shares of Advanced Micro Devices from $530.00 to $725.00 and gave the company an “overweight” rating in a research note on Tuesday, July 14th. Bank of America increased their target price on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Finally, UBS Group reiterated an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Advanced Micro Devices currently has an average rating of “Moderate Buy” and an average target price of $528.11.

Advanced Micro Devices Stock Down 5.2%

The stock has a market cap of $807.07 billion, a P/E ratio of 162.28 and a beta of 2.47. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The company has a 50-day simple moving average of $512.60 and a two-hundred day simple moving average of $341.53.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The firm had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter last year, the business earned $0.96 earnings per share. The business’s revenue was up 37.8% on a year-over-year basis. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer owned 2,896,899 shares in the company, valued at approximately $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $536.33, for a total value of $3,217,980.00. Following the completion of the sale, the executive vice president directly owned 1,233,687 shares of the company’s stock, valued at $661,663,348.71. The trade was a 0.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 310,310 shares of company stock worth $141,185,456. 0.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors have recently added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd grew its holdings in Advanced Micro Devices by 12.8% in 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 period. Trust Co of the South lifted its holdings in shares of Advanced Micro Devices by 1.5% during the second quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer’s stock valued at $1,014,000 after purchasing an additional 25 shares during the last quarter. Beaird Harris Wealth Management LLC boosted its position in shares of Advanced Micro Devices by 9.4% in the 2nd quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the semiconductor manufacturer’s stock worth $169,000 after purchasing an additional 25 shares in the last quarter. Veery Capital LLC boosted its position in shares of Advanced Micro Devices by 1.0% in the 2nd quarter. Veery Capital LLC now owns 2,793 shares of the semiconductor manufacturer’s stock worth $1,622,000 after purchasing an additional 27 shares in the last quarter. Finally, Arlington Trust Co LLC grew its stake in shares of Advanced Micro Devices by 3.3% in the 2nd quarter. Arlington Trust Co LLC now owns 915 shares of the semiconductor manufacturer’s stock worth $532,000 after buying an additional 29 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.