Advanced Micro Devices (NASDAQ:AMD) Stock Falls 7.5% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares dropped 7.5% on Monday. The stock traded as low as $466.07 and last traded at $466.84. 31,604,164 shares were traded during mid-day trading, a decline of 0% from the average session volume of 31,686,049 shares. The stock had previously closed at $504.80.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD beat third-quarter earnings and revenue estimates, with data-center revenue up about 97% year over year on demand for Instinct GPUs and EPYC CPUs. The results helped bolster confidence that AI spending is translating into sales. Reuters report on AMD’s results and outlook
• Positive Sentiment: The company forecast fourth-quarter revenue of about $17 billion, above analyst expectations, and management outlined potential revenue growth of more than 80% in 2027 as AI infrastructure expands. AMD Q3 earnings-call outlook
• Positive Sentiment: Several analysts raised price targets after the results, including Piper Sandler, which lifted its target to $650 and maintained an Overweight rating. These revisions reflect optimism about AI demand and server CPU prospects. Analyst views following AMD’s results
• Neutral Sentiment: The strong results and outlook have helped shares recover, but the stock’s reaction has been uneven as investors weigh whether AMD can deliver on ambitious 2027 expectations. Analysts assess AMD’s earnings
• Negative Sentiment: Risks include an elevated valuation, weaker gaming performance, and pressure on free cash flow as AMD invests to support growth. The company also faces constraints in sourcing high-bandwidth memory, while Intel and custom-chip providers compete for data-center spending. AMD growth opportunities and risks

Analyst Upgrades and Downgrades

AMD has been the topic of several recent research reports. Sanford C. Bernstein restated an “outperform” rating on shares of Advanced Micro Devices in a research report on Wednesday. UBS Group reduced their price target on Advanced Micro Devices from $730.00 to $700.00 and set a “buy” rating for the company in a report on Wednesday. Wells Fargo & Company lowered their price target on Advanced Micro Devices from $700.00 to $650.00 and set an “overweight” rating on the stock in a research report on Wednesday. Cantor Fitzgerald reissued an “overweight” rating and issued a $700.00 price objective on shares of Advanced Micro Devices in a report on Wednesday. Finally, KeyCorp restated an “overweight” rating and issued a $725.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $618.49.

Advanced Micro Devices Stock Up 1.0%

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The firm has a 50 day moving average price of $548.90 and a 200-day moving average price of $413.03. The firm has a market cap of $797.92 billion, a price-to-earnings ratio of 85.95, a P/E/G ratio of 4.97 and a beta of 2.49.

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

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the sale, the executive vice president directly owned 117,687 shares in the company, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 231,100 shares of company stock worth $114,867,400. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently made changes to their positions in the business. DecisionPoint Financial LLC increased its holdings in shares of Advanced Micro Devices by 79.2% during the 3rd quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. acquired a new stake in shares of Advanced Micro Devices during the 3rd quarter worth approximately $29,000. JNBA Financial Advisors increased its position in shares of Advanced Micro Devices by 142.9% during the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after purchasing an additional 30 shares during the period. Downshift Financial LLC increased its position in shares of Advanced Micro Devices by 850.0% during the third quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer’s stock valued at $35,000 after purchasing an additional 51 shares during the period. Finally, Sawyer & Company Inc acquired a new position in shares of Advanced Micro Devices in the 3rd quarter valued at $37,000. 71.34% of the stock is currently owned by institutional investors.

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.