Advanced Micro Devices (NASDAQ:AMD) Shares Down 2.4% on Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price fell 2.4% on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $452.30 and last traded at $459.61. 16,044,925 shares were traded during trading, a decline of 53% from the average daily volume of 34,318,777 shares. The stock had previously closed at $470.72.

Other research analysts also recently issued research reports about the company. Oppenheimer downgraded Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a research note on Wednesday, May 6th. Argus upped their price objective on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. BMO Capital Markets initiated coverage on Advanced Micro Devices in a research report on Thursday, August 20th. They issued an “outperform” rating and a $550.00 target price on the stock. Loop Capital raised shares of Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. Finally, Mizuho upped their target price on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a research report on Monday, July 27th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $553.72.

Insider Activity

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 28,811 shares of the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. The trade was a 2.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 15,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $480.94, for a total value of $7,214,100.00. Following the completion of the sale, the chief executive officer owned 3,102,156 shares in the company, valued at $1,491,950,906.64. The trade was a 0.48% 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. In the last ninety days, insiders have sold 232,577 shares of company stock worth $109,509,170. Corporate insiders own 0.50% of the company’s stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AI infrastructure demand remains a key catalyst. AMD is expanding its Saudi Arabia AI initiative with HUMAIN, targeting 250 megawatts of capacity from 2027 and potentially 1 gigawatt by 2030. The company is also participating in ASUS’s broader AI infrastructure ecosystem and has been highlighted as a potential beneficiary of the shift toward AI inference. Can AMD’s Saudi AI Buildout Challenge NVIDIA and Broadcom?
• Positive Sentiment: Analysts and prominent investors continue to see long-term upside. Commentary points to AMD’s server CPU growth, improving data-center momentum and possible gains against Intel. Tiger Global and Stanley Druckenmiller have reportedly added AMD exposure, while some analyst summaries cite substantial upside to consensus price targets. Stanley Druckenmiller Opens a Position in an AI Chip Challenger
• Neutral Sentiment: Post-earnings estimates are the next major focus. AMD exceeded quarterly revenue and EPS expectations, with revenue rising sharply year over year, but the stock has declined since the report. Investors are looking for upward or downward revisions to earnings estimates and evidence that AI growth can justify the company’s elevated valuation. Why Is Advanced Micro Down Since Its Last Earnings Report?
• Negative Sentiment: Valuation and execution concerns are weighing on sentiment. Several analyses argue AMD trades at a premium to Nvidia despite slower growth, while others flag the difficulty of converting AI demand into sustained earnings and margins. Zacks Research also downgraded AMD from “strong buy” to “hold.” Prediction: Nvidia Stock Will Outperform AMD Through 2028
• Negative Sentiment: Competitive and macro pressures remain. Nvidia’s investments and product roadmap are intended to defend its AI moat, while Broadcom’s weak guidance triggered a broader semiconductor selloff. Higher interest rates, technical resistance near recent support levels and reported ARK Invest sales of AMD shares add near-term pressure. Broadcom Falls as Soft Guidance Overshadows AI Revenue Growth

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors have recently modified their holdings of the stock. MLG Wealth Management DBA Pine Grove Financial Group acquired a new position in shares of Advanced Micro Devices in the 2nd quarter worth approximately $716,000. Range Advisory LLC boosted its holdings in Advanced Micro Devices by 47.0% in the second quarter. Range Advisory LLC now owns 5,954 shares of the semiconductor manufacturer’s stock valued at $3,459,000 after acquiring an additional 1,903 shares during the last quarter. Capital & Planning LLC acquired a new stake in shares of Advanced Micro Devices during the second quarter worth approximately $313,000. Agur Provident & Training Funds Management Ltd. bought a new stake in Advanced Micro Devices in the 2nd quarter valued at about $12,263,000. Finally, Cornerstone Financial Management LLC grew its position in Advanced Micro Devices by 76.6% in the second quarter. Cornerstone Financial Management LLC now owns 256 shares of the semiconductor manufacturer’s stock worth $149,000 after buying an additional 111 shares during the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Stock Performance

The company has a market capitalization of $746.66 billion, a price-to-earnings ratio of 117.58, a price-to-earnings-growth ratio of 4.76 and a beta of 2.48. The firm has a 50-day simple moving average of $501.61 and a two-hundred day simple moving average of $390.93. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

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. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The firm had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter last year, the business earned $0.48 earnings per share. The company’s revenue was up 50.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

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.