Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.9% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares fell 1.9% during trading on Friday . The company traded as low as $475.76 and last traded at $476.15. Approximately 26,348,275 shares changed hands during trading, a decline of 27% from the average daily volume of 36,203,738 shares. The stock had previously closed at $485.39.

Key Advanced Micro Devices News

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

• Positive Sentiment: Reports that AMD may raise GPU prices in August are supporting the shares by suggesting strong demand and potential margin improvement. AMD Stock Jumps as Reports Point to a GPU Price Increase in August
• Positive Sentiment: AMD’s agreement to lease up to 2.5 gigawatts of data-center capacity from Core Scientific strengthens its ability to support AI deployments. Bernstein estimates the partnership could generate roughly $14 billion in revenue over 15 years. Mining For Megawatts: AMD’s Billion-Dollar Grid Grab
• Positive Sentiment: Analyst support is improving: Susquehanna raised its price target from $450 to $500 and maintained a positive rating, while Wedbush cited Microsoft and Anthropic partnerships in lifting its target to $600. Susquehanna Just Upped Its Price Target on AMD Stock
• Positive Sentiment: Management continues to emphasize demand for EPYC server CPUs, Instinct accelerators and Ryzen AI products. Longer term, investors are also encouraged by commentary that AI workloads require more powerful CPUs. Should You Buy AMD Stock Ahead of Q2 Earnings?
• Neutral Sentiment: The August 4 earnings report is the immediate catalyst. Investors will focus on data-center growth, AI accelerator demand, guidance and evidence that recent partnerships are translating into revenue.
• Negative Sentiment: AMD’s valuation remains demanding, with a reported price-to-earnings ratio near 160. Fierce competition from NVIDIA and other chipmakers means substantial execution and growth are already reflected in expectations.
• Negative Sentiment: The stock remains volatile after a sharp July pullback, and the wider semiconductor sector is still recovering from an AI-trade unwind triggered partly by underwhelming SK Hynix results. AI Trade Unwinds After SK Hynix Results

Analyst Ratings Changes

A number of analysts recently issued reports on AMD shares. Susquehanna upped their target price on Advanced Micro Devices from $450.00 to $500.00 and gave the company a “positive” rating in a research report on Thursday. KeyCorp lifted their price target on Advanced Micro Devices from $530.00 to $725.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Loop Capital raised Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. Northland Securities reaffirmed a “market perform” rating and issued a $260.00 target price on shares of Advanced Micro Devices in a report on Monday, April 27th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a research report on Friday, July 24th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $529.46.

Advanced Micro Devices Stock 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 stock has a fifty day moving average price of $515.25 and a 200-day moving average price of $348.80. The firm has a market cap of $776.41 billion, a price-to-earnings ratio of 156.12 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.08. The company had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. Advanced Micro Devices’s revenue was up 37.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.96 EPS. On average, analysts expect that Advanced Micro Devices, Inc. will post 6.27 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the transaction, the executive vice president owned 324,527 shares in the company, valued at $140,000,947.80. This trade represents a 5.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 310,310 shares of company stock worth $141,185,456 in the last three months. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of Advanced Micro Devices by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock worth $33,949,256,000 after purchasing an additional 2,525,109 shares during the period. State Street Corp raised its holdings in Advanced Micro Devices by 1.5% in the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock valued at $16,044,712,000 after buying an additional 1,094,835 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Advanced Micro Devices by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock valued at $8,015,897,000 after acquiring an additional 287,525 shares in the last quarter. Norges Bank acquired a new position in shares of Advanced Micro Devices during the fourth quarter worth about $4,929,312,000. Finally, Price T Rowe Associates Inc. MD lifted its position in Advanced Micro Devices by 0.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock worth $4,352,864,000 after acquiring an additional 55,969 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

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.