Advanced Micro Devices (NASDAQ:AMD) Shares Down 7% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price traded down 7% on Wednesday . The stock traded as low as $478.20 and last traded at $482.05. 48,585,476 shares were traded during mid-day trading, an increase of 34% from the average daily volume of 36,278,320 shares. The stock had previously closed at $518.58.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD reported record second-quarter revenue of approximately $11.54 billion, up 50% year over year, while adjusted EPS of $1.66 exceeded consensus expectations. Data-center revenue more than doubled to roughly $6.7 billion, and gross margin expanded to 56%. AMD forecasts upbeat revenue on AI data-center demand
• Positive Sentiment: Management issued third-quarter revenue guidance of $12.7 billion to $13.3 billion, above the roughly $12.4 billion analyst consensus. AMD also expects data-center revenue to accelerate late in 2026 and more than double in 2027 as its Helios AI platform ramps. AMD Q2 Earnings Call Points to Faster Data Center Growth
• Positive Sentiment: Analysts remained broadly constructive: Goldman Sachs maintained a Buy rating and $640 target, while Wedbush and Cantor Fitzgerald reiterated Outperform or Overweight ratings with targets of $600 and $700. AMD Earns Buy Rating as Strong Datacenter Momentum Supports $640 Target
• Positive Sentiment: AMD and Super Micro Computer introduced systems featuring an AMD AI coding tool, while partnerships with Meta, OpenAI and Anthropic could help expand AMD’s software ecosystem and adoption. AMD and Super Micro Computer Team Up on an AI Coding Tool

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on AMD. Morgan Stanley increased their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Loop Capital raised shares of Advanced Micro Devices to a “strong-buy” rating in a research note on Tuesday, June 16th. Bank of America upped their price objective on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Oppenheimer cut shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a research report on Wednesday, May 6th. Finally, Needham & Company LLC upgraded Advanced Micro Devices to a “buy” rating in a research note on Wednesday, May 6th. Three analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus price target of $539.35.

Advanced Micro Devices Stock Down 7.0%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The stock’s 50 day simple moving average is $516.06 and its 200 day simple moving average is $354.63. The firm has a market cap of $786.03 billion, a P/E ratio of 158.05 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business’s quarterly revenue was up 50.1% compared to the same quarter last year. During the same period last year, the firm earned $0.48 earnings per share. Research analysts anticipate that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the sale, the executive vice president directly owned 1,233,687 shares of the company’s stock, valued at approximately $661,663,348.71. The trade was a 0.48% decrease in their position. The sale 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 the stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 2,896,899 shares of the company’s stock, valued at approximately $1,334,572,400.31. This trade represents a 4.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 310,310 shares of company stock worth $141,185,456 over the last ninety days. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors have recently bought and sold shares of AMD. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new position in shares of Advanced Micro Devices during the fourth quarter valued at about $27,000. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices during the fourth quarter worth about $27,000. Basepoint Wealth LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth about $30,000. Finally, Graney & King LLC bought a new stake in Advanced Micro Devices in the 1st quarter worth about $31,000. 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.