Advanced Micro Devices (NASDAQ:AMD) Trading Down 6.9% – What’s Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) were down 6.9% during trading on Wednesday . The company traded as low as $538.74 and last traded at $540.88. Approximately 27,919,553 shares were traded during trading, a decline of 26% from the average session volume of 37,638,598 shares. The stock had previously closed at $580.91.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Wells Fargo raised its price target on AMD to $615 from $505 and kept an Overweight rating, citing stronger AI-driven server CPU demand and improved long-term visibility. AMD Gets a Price Target Hike Thanks to Surging CPU Demand
• Positive Sentiment: Other analysts also turned more bullish, with additional target hikes and Street-high forecasts reinforcing the view that AMD’s data center and AI businesses are still accelerating. 5-star analyst resets AMD stock price target, but it’s not about GPUs
• Positive Sentiment: AMD expanded its AI reach with new Versal Premium Gen 2 MoP SoCs, a move aimed at compact AI, networking, defense and video systems that could broaden the company’s addressable market. AMD Expands AI Reach With Versal Premium Gen 2 MoP SoCs: What’s Ahead?
• Positive Sentiment: Multiple reports highlighted AMD’s outsized second-quarter rally and its approach toward a $1 trillion valuation, reflecting strong momentum in AI semiconductors and broad investor enthusiasm for the stock. Record chip rally adds $2 trillion in combined value to Micron, Intel and AMD in second quarter
• Neutral Sentiment: Several market commentary pieces noted that AMD’s huge year-to-date gains and recent record highs make the shares look technically stretched, which helps explain why some investors are locking in profits. Why Is AMD Stock Down Today, 7/1/26?
• Negative Sentiment: Broader semiconductor weakness and “bubble risk” concerns triggered a pullback in the group, putting pressure on AMD despite its strong fundamentals. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Analysts Set New Price Targets

A number of brokerages have issued reports on AMD. Stifel Nicolaus lifted their price target on Advanced Micro Devices from $320.00 to $450.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Barclays lowered Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research report on Friday, June 12th. Seaport Research Partners upgraded shares of Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 price target on the stock in a research note on Wednesday, May 6th. Morgan Stanley raised their price objective on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Finally, Jefferies Financial Group downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $448.78.

Advanced Micro Devices Price Performance

The company’s 50 day moving average price is $456.48 and its 200 day moving average price is $301.41. The company has a market cap of $881.96 billion, a price-to-earnings ratio of 177.34, a PEG ratio of 1.59 and a beta of 2.50. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

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, beating the consensus estimate 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 period last year, the firm earned $0.96 EPS. The company’s quarterly revenue was up 37.8% compared to the same quarter last year. Equities research analysts forecast that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insider Buying and Selling

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total transaction 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. This represents a 4.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the sale, the executive vice president directly owned 324,527 shares in the company, valued at approximately $140,000,947.80. The trade was a 5.66% 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. Over the last 90 days, insiders sold 378,032 shares of company stock valued at $161,876,596. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Institutional investors have recently modified their holdings of the company. Clal Insurance Enterprises Holdings Ltd boosted its holdings in Advanced Micro Devices by 12.8% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock valued at $43,000 after purchasing an additional 24 shares during the last quarter. Trust Co of the South increased its holdings in Advanced Micro Devices by 1.5% during the 2nd quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer’s stock worth $1,014,000 after purchasing an additional 25 shares during the last quarter. CLG LLC raised its position in shares of Advanced Micro Devices by 3.1% in the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock valued at $205,000 after purchasing an additional 30 shares in the last quarter. Columbia Bank raised its position in shares of Advanced Micro Devices by 0.7% in the 1st quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock valued at $1,055,000 after purchasing an additional 34 shares in the last quarter. Finally, Evolution Wealth Management Inc. boosted its stake in shares of Advanced Micro Devices by 11.0% during the 1st quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock valued at $72,000 after buying an additional 35 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

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.