Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 4.3% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 4.3% during mid-day trading on Thursday . The stock traded as low as $506.00 and last traded at $517.82. Approximately 27,840,596 shares were traded during mid-day trading, a decline of 26% from the average session volume of 37,559,352 shares. The stock had previously closed at $540.88.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Several recent reports remain bullish on AMD’s long-term setup, citing strong data center momentum, continued AI infrastructure demand, and new product launches such as Versal Premium Gen 2 for AI, networking, and aerospace workloads. Analysts including Wells Fargo, UBS, and Cantor have also raised price targets, signaling that some on Wall Street still see meaningful upside. Article Title
• Positive Sentiment: Investor sentiment is being helped by commentary that AMD’s AI and server CPU business remains a key beneficiary of the semiconductor buildout, and some market observers continue to view recent weakness as a buying opportunity rather than a trend change. Article Title
• Neutral Sentiment: At the same time, analysts are warning that the broader AI trade is becoming more selective: Invesco’s Fiona Lim said the “lifted all boats” phase is ending, and future winners will likely be decided by profitability as capacity catches up. That suggests AMD may need to keep executing to justify its premium valuation. Article Title
• Neutral Sentiment: Market commentary also points to AMD’s stretched valuation, with one piece highlighting a forward P/E around 54x. While data center growth is strong, concerns over competition, gaming कमजोरी, and margin pressure are keeping near-term enthusiasm in check. Article Title
• Negative Sentiment: Recent trading has also been pressured by the broader semiconductor pullback and AI-spending fears, including reports of a sharp selloff after Meta-related compute news. That has raised questions about how durable current AI capex trends really are and whether AMD can hold support after its recent run-up. Article Title

Wall Street Analyst Weigh In

AMD has been the topic of a number of recent analyst reports. KeyCorp raised their price target on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Rosenblatt Securities increased their price objective on shares of Advanced Micro Devices from $300.00 to $490.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. TD Cowen lifted their target price on shares of Advanced Micro Devices from $500.00 to $600.00 and gave the stock a “buy” rating in a research report on Monday, June 1st. Raymond James Financial began coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They issued a “market perform” rating on the stock. Finally, UBS Group upped their target price on Advanced Micro Devices from $455.00 to $670.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, twelve 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 a consensus rating of “Moderate Buy” and a consensus price target of $448.78.

Advanced Micro Devices Stock Performance

The company has a market cap of $844.36 billion, a P/E ratio of 169.78, a price-to-earnings-growth ratio of 1.53 and a beta of 2.47. The company’s 50-day moving average is $470.75 and its two-hundred day moving average is $307.30. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 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 business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter in the previous year, the firm posted $0.96 earnings per share. The company’s revenue for the quarter was up 37.8% on a year-over-year basis. Equities analysts predict that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s stock in a transaction 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 transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at $140,000,947.80. This represents a 5.66% decrease in their position. The sale was disclosed in a filing 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 Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the transaction, the executive vice president owned 105,222 shares of the company’s stock, valued at $46,759,604.58. This represents a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 378,032 shares of company stock valued at $161,876,596 in the last quarter. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AMD. Norges Bank purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at $4,929,312,000. Jennison Associates LLC lifted its holdings in Advanced Micro Devices by 181.6% during the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after purchasing an additional 7,035,991 shares in the last quarter. Cardano Risk Management B.V. bought a new position in Advanced Micro Devices in the 4th quarter worth about $1,000,783,000. Wellington Management Group LLP grew its holdings in Advanced Micro Devices by 335.9% during the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock valued at $784,330,000 after buying an additional 3,735,807 shares in the last quarter. Finally, Franklin Resources Inc. grew its holdings in Advanced Micro Devices by 340.1% during the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $1,016,796,000 after buying an additional 3,669,054 shares in the last quarter. 71.34% of the stock is owned by 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.