Advanced Micro Devices (NASDAQ:AMD) Stock Falls 17.3% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price traded down 17.3% during trading on Thursday. The company traded as low as $402.10 and last traded at $404.40. Approximately 69,839,769 shares changed hands during mid-day trading, an increase of 119% from the average daily volume of 31,918,953 shares. The stock had previously closed at $488.78.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD reported record third-quarter revenue of about $13.4 billion, up 45% year over year, with earnings per share above estimates and data-center revenue nearly doubling. Management forecast roughly $17 billion in fourth-quarter revenue and expects revenue to grow more than 80% next year, supported by AI demand. Is AMD Stock a Buy as AI Revenue Soars?
• Positive Sentiment: CEO Lisa Su pushed back against concerns about AI spending, calling the market’s view short-sighted and reaffirming expectations for sustained demand for computing and data-center capacity. AMD CEO Lisa Su Calls This Market Moment ‘Short-Sighted’ on AI Spending
• Positive Sentiment: Some analysts raised their targets after the results: HSBC lifted its target to $540 while keeping a Hold rating, and DZ Bank raised its target to $620. These revisions signal confidence in AMD’s growth potential, though they do not eliminate execution risks. HSBC raises AMD target to $540 but flags a troubling risk
• Negative Sentiment: The immediate pressure is largely tied to a sector-wide AI and chip sell-off following the Democratic midterm wins. Investors are concerned about potential policy constraints on AI and data-center expansion, outweighing AMD’s strong earnings in the near term. Why AMD Stock Is Down Today
• Negative Sentiment: AMD’s sharp run-up has left its valuation demanding, making investors less forgiving if growth or returns fall short. Coverage also highlights the need to convert AI wins into profitable growth and concerns about data-center investment and infrastructure hurdles. Is Advanced Micro Devices (AMD) Fully Priced After Record AI Growth?

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Morgan Stanley upped their price target on Advanced Micro Devices from $465.00 to $510.00 and gave the stock an “equal weight” rating in a research note on Monday. Benchmark raised their price objective on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a research note on Wednesday, July 22nd. Susquehanna boosted their price objective on Advanced Micro Devices from $620.00 to $650.00 and gave the company a “positive” rating in a report on Wednesday, October 28th. Roth Capital upped their target price on Advanced Micro Devices from $500.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Finally, Stifel Nicolaus upped their target price on Advanced Micro Devices from $700.00 to $725.00 and gave the stock a “buy” rating in a research report on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $633.17.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $660.17 billion, a P/E ratio of 87.91, a price-to-earnings-growth ratio of 4.97 and a beta of 2.49. The company has a 50 day simple moving average of $548.90 and a 200-day simple moving average of $413.03. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, beating analysts’ consensus estimates of $1.95 by $0.14. The firm had revenue of $13.38 billion for the quarter, compared to analysts’ expectations of $13.10 billion. Advanced Micro Devices had a return on equity of 14.34% and a net margin of 16.77%. The business’s revenue for the quarter was up 44.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.20 EPS. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.50 EPS for the current year.

Insider Activity

In related news, CEO Lisa T. Su sold 70,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.80, for a total value of $35,476,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at approximately $1,536,696,660.80. This trade represents a 2.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the transaction, the executive vice president owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. This represents a 2.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 231,100 shares of company stock valued at $114,867,400. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AMD. DSG Capital Advisors LLC boosted its holdings in Advanced Micro Devices by 251.7% in the third quarter. DSG Capital Advisors LLC now owns 1,938 shares of the semiconductor manufacturer’s stock valued at $1,186,000 after purchasing an additional 1,387 shares in the last quarter. Illinois Municipal Retirement Fund raised its stake in shares of Advanced Micro Devices by 22.6% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 71,407 shares of the semiconductor manufacturer’s stock worth $43,684,000 after buying an additional 13,156 shares in the last quarter. AMG National Trust Bank increased its holdings in shares of Advanced Micro Devices by 20.4% in the 3rd quarter. AMG National Trust Bank now owns 3,666 shares of the semiconductor manufacturer’s stock valued at $2,243,000 after purchasing an additional 621 shares in the last quarter. Moneco Advisors LLC raised its holdings in Advanced Micro Devices by 1.5% during the third quarter. Moneco Advisors LLC now owns 19,256 shares of the semiconductor manufacturer’s stock worth $11,780,000 after purchasing an additional 290 shares during the last quarter. Finally, 626 Financial LLC raised its position in Advanced Micro Devices by 3.5% during the third quarter. 626 Financial LLC now owns 1,114 shares of the semiconductor manufacturer’s stock worth $682,000 after acquiring an additional 38 shares during the last quarter. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.