Advanced Micro Devices (NASDAQ:AMD) Shares Down 2.9% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was down 2.9% during trading on Monday . The company traded as low as $469.29 and last traded at $469.56. Approximately 19,419,108 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 36,073,605 shares. The stock had previously closed at $483.36.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Institutional buying provides support. Migdal Insurance opened an estimated $134.2 million AMD position, while AGF Management increased its holding by approximately 554,209 shares, worth about $322 million. These additions suggest continued institutional interest in AMD’s long-term growth story. Fund Update: New $134.2M AMD stock position opened by Migdal Insurance & Financial Holdings Ltd.
• Positive Sentiment: AMD is expanding its AI-inference strategy. The planned acquisition of Taalas adds specialized inference-chip technology intended to improve performance and efficiency, potentially strengthening AMD’s position against Nvidia and Google. AMD also added support for Meta’s Muse Glimmer 30B model, expanding its local-AI ecosystem. Taalas Buyout Boosts AMD’s AI Inference Abilities Against Nvidia and Google
• Positive Sentiment: Analyst sentiment remains favorable. AMD’s average brokerage view is equivalent to a Buy or Moderate Buy, with several price targets well above recent trading levels, including targets of $550 to $700. Is Advanced Micro AMD a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Strong earnings have not translated into immediate buying. AMD exceeded quarterly earnings and revenue estimates, with revenue rising 50.1% year over year, but investors remain focused on whether future AI growth can justify the stock’s elevated valuation.
• Negative Sentiment: Free-cash-flow and valuation concerns are weighing on the shares. Recent coverage highlighted lower free cash flow compared with the prior quarter, while AMD trades at a high earnings multiple. The combination raises the bar for future results and increases sensitivity to profit-taking. Advanced Micro Devices Dips on Lower FCF
• Negative Sentiment: Persistent insider selling is a notable overhang. AMD insiders reportedly made 99 open-market sales and no purchases during the past six months, including substantial sales by CEO Lisa Su and other senior executives. This may reinforce concerns that some insiders view the recent valuation as attractive for taking profits.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. TD Cowen reiterated a “buy” rating on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Wall Street Zen upgraded shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Monday, July 20th. Morgan Stanley upped their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a report on Wednesday, August 5th. Wells Fargo & Company raised their price target on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. Finally, Truist Financial boosted their price target on Advanced Micro Devices from $478.00 to $594.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus target price of $546.87.

Advanced Micro Devices Stock Performance

The company has a market cap of $766.54 billion, a PE ratio of 120.71 and a beta of 2.48. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The stock’s 50-day simple moving average is $514.56 and its 200 day simple moving average is $360.00.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business’s revenue was up 50.1% on a year-over-year basis. During the same quarter last year, the business earned $0.48 EPS. As a group, equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.38 EPS for the current year.

Insider Activity

In related news, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were 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 $1,334,572,400.31. This trade represents a 4.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, June 15th. The shares were 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 in the company, valued at $661,663,348.71. This represents a 0.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 285,934 shares of company stock worth $130,353,006 in the last three months. 0.50% of the stock is currently owned by company insiders.

Institutional Trading of Advanced Micro Devices

A number of institutional investors have recently modified their holdings of AMD. Lcnb Corp acquired a new position in Advanced Micro Devices during the second quarter worth $497,000. Essential Partners LLC lifted its holdings in Advanced Micro Devices by 21.3% in the second quarter. Essential Partners LLC now owns 729 shares of the semiconductor manufacturer’s stock valued at $423,000 after acquiring an additional 128 shares during the period. TPG Financial Advisors LLC acquired a new stake in Advanced Micro Devices in the second quarter valued at $200,000. Chancellor Financial Group WB LP boosted its position in shares of Advanced Micro Devices by 9.2% during the 2nd quarter. Chancellor Financial Group WB LP now owns 1,192 shares of the semiconductor manufacturer’s stock worth $692,000 after purchasing an additional 100 shares in the last quarter. Finally, Great Lakes Advisors LLC boosted its position in shares of Advanced Micro Devices by 484.8% during the 2nd quarter. Great Lakes Advisors LLC now owns 30,251 shares of the semiconductor manufacturer’s stock worth $17,574,000 after purchasing an additional 25,078 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

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.