Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.4% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 3.4% during mid-day trading on Thursday . The stock traded as low as $502.81 and last traded at $503.60. Approximately 15,887,256 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 33,781,125 shares. The stock had previously closed at $521.09.

More Advanced Micro Devices News

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

• Positive Sentiment: Piper Sandler initiated coverage with a Buy rating, while other analysts cited AMD’s potential gains in agentic AI, data-center CPUs and GPUs. Price targets reportedly reach $600 or higher. Piper Sandler AMD coverage
• Positive Sentiment: AMD’s CFO Jean Hu recently described a potential $2 trillion to $3 trillion AI opportunity by 2030 and expects the data-center business to expand substantially, helping drive recent optimism. AMD AI opportunity outlook
• Positive Sentiment: Strong demand indicators remain supportive: TSMC reported August revenue growth of 53.3% year over year, signaling robust orders for advanced chips, although the report also highlighted rising manufacturing and packaging costs for chip designers such as AMD. TSMC August revenue
• Positive Sentiment: AMD’s upcoming MI450 accelerator cycle and its partnership with Xanadu on the Backline quantum-computing platform add potential growth avenues beyond its existing CPU and data-center businesses. Xanadu and AMD Backline partnership
• Neutral Sentiment: ARK Invest’s Cathie Wood has been selling AMD while shifting capital toward Cerebras. The move may create short-term supply pressure, but it is an individual portfolio decision rather than a change in AMD’s fundamentals. Cathie Wood sells AMD
• Negative Sentiment: AMD is declining alongside Nvidia, Broadcom and other semiconductor stocks despite TSMC’s strong results, reflecting concerns about stretched AI valuations, elevated Treasury yields, rising oil prices and broader market risk.
• Negative Sentiment: Investors are also weighing execution risks, including limited advanced-packaging capacity, supply constraints and higher fabrication costs that could pressure margins or delay accelerator shipments.
• Negative Sentiment: At a premium valuation, AMD needs strong data-center growth and a successful MI450 ramp to justify expectations, leaving the stock vulnerable to profit-taking when near-term momentum fades.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on AMD shares. Citigroup raised shares of Advanced Micro Devices from a “market perform” rating to a “buy” rating in a report on Wednesday, July 22nd. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $650.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Cantor Fitzgerald reiterated an “overweight” rating and set a $700.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Morgan Stanley raised their price target on Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a report on Wednesday, August 5th. Finally, The Goldman Sachs Group upped their price objective on Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a report on Monday, July 6th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $565.12.

Advanced Micro Devices Stock Down 3.4%

The stock has a market cap of $822.11 billion, a price-to-earnings ratio of 129.46, a P/E/G ratio of 5.24 and a beta of 2.48. 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’s 50 day moving average is $496.07 and its two-hundred day moving average is $400.91.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the company earned $0.48 EPS. Advanced Micro Devices’s revenue for the quarter was up 50.1% on a year-over-year basis. On average, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.44 EPS for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 15,000 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer directly owned 3,102,156 shares of the company’s stock, valued at $1,491,950,906.64. This represents a 0.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at $76,316,924.32. This represents a 8.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 107,577 shares of company stock valued at $51,922,920 over the last 90 days. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Southpoint Capital Advisors LP increased its holdings in shares of Advanced Micro Devices by 50.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock worth $183,087,000 after buying an additional 300,000 shares during the last quarter. Jefferies Financial Group Inc. lifted its holdings in shares of Advanced Micro Devices by 6,228.8% during the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock worth $65,966,000 after acquiring an additional 303,154 shares during the last quarter. Boomfish Wealth Group LLC purchased a new position in Advanced Micro Devices in the first quarter worth $1,193,000. Dimensional Fund Advisors LP increased its stake in Advanced Micro Devices by 6.0% in the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock valued at $1,045,954,000 after acquiring an additional 291,165 shares during the last quarter. Finally, Williamson Legacy Group LLC bought a new position in Advanced Micro Devices in the fourth quarter valued at $1,118,000. 71.34% of the stock is currently owned by institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.