Advanced Micro Devices (NASDAQ:AMD) Trading Down 5.5% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) was down 5.5% during mid-day trading on Wednesday . The stock traded as low as $424.03 and last traded at $429.7460. 31,828,313 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 36,291,965 shares. The stock had previously closed at $454.62.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: A broader chip-sector rebound, supported by stronger-than-expected results from Microsoft and Lam Research, has renewed confidence in data-center and AI infrastructure spending. Memory-industry supply concerns also helped lift sentiment across chip stocks. Chip stocks rally after Microsoft and Lam Research results
• Positive Sentiment: AMD’s agreement with Core Scientific to lease more than 500 megawatts of data-center capacity initially, with the potential to reach 2.5 gigawatts, is being viewed as a way to address a key AI deployment bottleneck. Bernstein estimates the arrangement could generate approximately $14 billion in revenue over 15 years. AMD and Core Scientific data-center capacity deal
• Positive Sentiment: Wall Street remains constructive ahead of earnings. Susquehanna raised its AMD price target from $450 to $500 and assigned a positive rating, while Wedbush reportedly lifted its target to $600, citing expected strength in AMD’s data-center business and partnerships involving Microsoft and Anthropic. Susquehanna raises AMD price target
• Positive Sentiment: An Anthropic developer’s comments about the need for more powerful CPUs reinforced the potential for AMD’s server-CPU business, while investors continue to view its AI accelerator lineup as a potential number-two platform behind Nvidia. Anthropic highlights demand for powerful CPUs
• Neutral Sentiment: August 4 earnings are the immediate catalyst. Investors will focus on data-center growth, AI chip demand, margins, and the company’s outlook to determine whether AMD’s elevated valuation is justified. AMD earnings scheduled for August 4
• Negative Sentiment: Technical indicators continue to flash sell signals, and AMD remains exposed to elevated valuation risk after a sharp recent pullback. Concerns about China’s chip advances, AI-spending sustainability, and a broader semiconductor correction could renew volatility if earnings or guidance disappoint. AMD technical indicators and earnings outlook

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on AMD. HSBC downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and increased their target price for the stock from $335.00 to $340.00 in a research note on Monday, May 4th. Citigroup raised shares of Advanced Micro Devices from a “market perform” rating to a “buy” rating in a report on Wednesday, July 22nd. Mizuho lifted their price target on Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a research note on Monday. Northland Securities reaffirmed a “market perform” rating and issued a $260.00 target price on shares of Advanced Micro Devices in a research note on Monday, April 27th. Finally, Morgan Stanley raised their price target on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $529.46.

Advanced Micro Devices Stock Performance

The stock’s 50-day moving average is $515.25 and its 200-day moving average is $348.80. 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 stock has a market cap of $806.08 billion, a price-to-earnings ratio of 162.18 and a beta of 2.47.

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, beating the consensus estimate of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates 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 quarterly revenue was up 37.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.96 EPS. On average, analysts expect that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the firm’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 completion of the sale, the chief executive officer owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the sale, the executive vice president directly owned 324,527 shares of the company’s stock, valued at $140,000,947.80. The trade was a 5.66% 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. In the last quarter, insiders sold 310,310 shares of company stock valued at $141,185,456. 0.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds have recently bought and sold shares of the company. Joseph Group Capital Management acquired a new stake in shares of Advanced Micro Devices during the fourth quarter worth $25,000. Sarver Vrooman Wealth Advisors acquired a new stake in shares of Advanced Micro Devices in the 4th quarter worth approximately $27,000. Cornerstone Financial Management LLC bought a new position in Advanced Micro Devices during the 4th quarter valued at $27,000. Basepoint Wealth LLC acquired a new position in Advanced Micro Devices during the fourth quarter worth about $30,000. Finally, Graney & King LLC bought a new stake in shares of Advanced Micro Devices in the 1st quarter worth approximately $31,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.