Advanced Micro Devices (NASDAQ:AMD) Shares Down 4.9% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) was down 4.9% on Wednesday . The stock traded as low as $448.33 and last traded at $452.40. Approximately 27,199,139 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 38,366,398 shares. The stock had previously closed at $475.51.

Key Advanced Micro Devices News

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

• Positive Sentiment: Citi upgraded AMD and argued that the market is underpricing its AI GPU upside, boosting confidence in the stock’s AI-driven growth path.
• Positive Sentiment: Bank of America also raised its outlook on AMD, calling it a top CPU pick and pointing to a large agentic AI opportunity across servers and accelerators.
• Positive Sentiment: Multiple reports highlighted rising GPU market-share data and stronger investor focus on AMD’s expanding role in AI hardware, helping semiconductor stocks rally broadly.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on AMD shares. Wells Fargo & Company raised their price objective on Advanced Micro Devices from $345.00 to $505.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Melius Research set a $540.00 price objective on Advanced Micro Devices in a report on Monday, May 18th. Raymond James Financial started coverage on Advanced Micro Devices in a report on Wednesday, May 6th. They issued a “market perform” rating for the company. Seaport Research Partners upgraded Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 price objective for the company in a report on Wednesday, May 6th. Finally, Evercore restated an “outperform” rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $424.59.

Advanced Micro Devices Price Performance

The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The firm has a market cap of $834.17 billion, a P/E ratio of 167.73, a PEG ratio of 1.33 and a beta of 2.50. The business has a fifty day moving average of $380.39 and a 200 day moving average of $272.51.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter last year, the company posted $0.96 earnings per share. Advanced Micro Devices’s quarterly revenue was up 37.8% on a year-over-year basis. On average, sell-side analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the transaction, the executive vice president owned 1,236,037 shares in the company, valued at approximately $432,612,950. This trade represents a 2.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company’s stock, valued at $1,334,572,400.31. The trade was a 4.14% 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 372,032 shares of company stock valued at $158,658,616 in the last three months. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Impax Asset Management Group plc raised its position in shares of Advanced Micro Devices by 326.5% in the third quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer’s stock valued at $8,424,000 after buying an additional 39,861 shares in the last quarter. Jefferies Financial Group Inc. raised its position in shares of Advanced Micro Devices by 6,228.8% in the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after buying an additional 303,154 shares in the last quarter. Williamson Legacy Group LLC acquired a new stake in shares of Advanced Micro Devices in the fourth quarter valued at approximately $1,118,000. Thoroughbred Financial Services LLC raised its position in shares of Advanced Micro Devices by 8.8% in the fourth quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock valued at $7,030,000 after buying an additional 2,654 shares in the last quarter. Finally, Zweig DiMenna Associates LLC raised its position in shares of Advanced Micro Devices by 127.6% in the third quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer’s stock valued at $11,746,000 after buying an additional 40,708 shares in the last quarter. Institutional investors 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.