Advanced Micro Devices (NASDAQ:AMD) Shares Gap Down – What’s Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) gapped down before the market opened on Wednesday . The stock had previously closed at $518.58, but opened at $484.50. Advanced Micro Devices shares last traded at $494.00, with a volume of 14,178,635 shares traded.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, while adjusted EPS of $1.66 exceeded the $1.62 consensus estimate. Data-center revenue more than doubled to approximately $6.7 billion, and gross margin improved to 56%. AMD Q2 earnings report
• Positive Sentiment: Management forecast third-quarter revenue of $12.7 billion to $13.3 billion, above the roughly $12.4 billion consensus estimate. Executives also said data-center growth should accelerate late in 2026 and could more than double in 2027 as the Helios rack-scale AI platform ramps. AMD Q2 earnings call points to faster data center growth
• Positive Sentiment: Several analysts remained bullish. Wedbush reaffirmed an Outperform rating with a $600 target, Cantor Fitzgerald maintained Overweight with a $700 target, and Susquehanna raised its target to $550, citing accelerating AI-GPU and data-center demand. Analyst raises AMD price target
• Neutral Sentiment: AMD said server-CPU demand is strong enough to pressure supply, with management expecting improved conditions and stronger growth in 2027. Partnerships with Meta, OpenAI and Anthropic are also intended to improve software optimization on AMD’s platform, potentially strengthening its AI ecosystem.
• Negative Sentiment: The earnings and guidance beats were viewed as modest relative to AMD’s elevated expectations after a substantial rally. Investors wanted clearer evidence that AI spending will translate into faster near-term growth and a larger Helios contribution. AMD falls as investors seek bigger AI payoff
• Negative Sentiment: Analysts raised concerns about the margin outlook, the cost of building and deploying AI infrastructure, and AMD’s valuation, including a reported P/E above 150. Competitive pressure from Nvidia was highlighted after SpaceX said it plans to use Nvidia chips exclusively for future AI infrastructure. Three reasons AMD stock is falling

Analysts Set New Price Targets

Several research firms have recently issued reports on AMD. Oppenheimer cut shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a report on Wednesday, May 6th. TD Cowen reaffirmed a “buy” rating on shares of Advanced Micro Devices in a research note on Wednesday. Barclays cut Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research report on Friday, June 12th. 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, Northland Securities reaffirmed a “market perform” rating and set a $260.00 target price on shares of Advanced Micro Devices in a research note on Monday, April 27th. Three research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $535.97.

Advanced Micro Devices Price Performance

The company has a market cap of $797.44 billion, a price-to-earnings ratio of 160.54 and a beta of 2.48. 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 business has a 50-day moving average price of $516.06 and a 200 day moving average price of $354.63.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company’s quarterly revenue was up 50.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.48 EPS. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the business’s 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 sale, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Nora Denzel sold 8,626 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the sale, the director directly owned 87,173 shares of the company’s stock, valued at $45,504,306. This represents a 9.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 310,310 shares of company stock worth $141,185,456 over the last three months. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of large investors have recently made changes to their positions in AMD. Brighton Jones LLC boosted its stake in Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after purchasing an additional 29,438 shares during the period. Revolve Wealth Partners LLC raised its stake in Advanced Micro Devices by 2.9% during the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock valued at $1,001,000 after purchasing an additional 234 shares during the period. Sivia Capital Partners LLC lifted its holdings in shares of Advanced Micro Devices by 125.1% in the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock valued at $758,000 after purchasing an additional 2,970 shares in the last quarter. United Bank lifted its holdings in shares of Advanced Micro Devices by 22.0% in the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after purchasing an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its position in shares of Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after buying an additional 7,228 shares during the period. Institutional investors and hedge funds own 71.34% of the company’s stock.

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.