Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 10.9% – What’s Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 10.9% during mid-day trading on Friday. The stock traded as low as $492.21 and last traded at $504.80. Approximately 39,390,815 shares traded hands during mid-day trading, an increase of 24% from the average daily volume of 31,684,773 shares. The stock had previously closed at $566.42.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s expanding partnership with Meta Platforms includes a reported $1 billion equity investment, multi-generation chip co-design and a potential 6-gigawatt AI infrastructure deployment. The agreement strengthens AMD’s position in data-center CPUs, Instinct GPUs and Helios rack systems. Advanced Micro Devices’ Meta Platforms Partnership Goes Beyond a $1 Billion Investment
• Positive Sentiment: Recent reports highlight that AMD’s data-center revenue nearly doubled, with management forecasting additional acceleration. Helios systems are reportedly shipping ahead of schedule, supporting the bullish AI infrastructure thesis. AMD Expands AI Footprint With Meta
• Positive Sentiment: Some analysts remain constructive, with reported price targets above the current trading level and expectations that strong data-center results could support further upside after earnings.

Wall Street Analyst Weigh In

AMD has been the subject of several recent analyst reports. DA Davidson increased their price objective on Advanced Micro Devices from $425.00 to $550.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Argus boosted their price objective on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. UBS Group restated an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. Truist Financial boosted their price target on shares of Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, BMO Capital Markets assumed coverage on Advanced Micro Devices in a report on Thursday, August 20th. They set an “outperform” rating and a $550.00 price target on the stock. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $607.57.

Advanced Micro Devices Stock Down 10.9%

The stock has a 50 day moving average of $547.58 and a 200-day moving average of $407.71. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The firm has a market capitalization of $824.07 billion, a P/E ratio of 129.77, a PEG ratio of 5.94 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results 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 business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The company’s quarterly revenue was up 50.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.48 EPS. Research analysts predict that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Lisa Su sold 25,000 shares of Advanced Micro Devices stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.79, for a total value of $12,669,750.00. Following the completion of the transaction, the chief executive officer owned 74,211 shares of the company’s stock, valued at $37,609,392.69. The trade was a 25.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. The trade was a 2.23% 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 231,100 shares of company stock worth $114,867,400 over 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 modified their holdings of the stock. BlackRock Inc. boosted its position in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. State Street Corp raised its stake in shares of Advanced Micro Devices by 2.9% in the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after buying an additional 2,149,563 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Advanced Micro Devices in the 2nd quarter worth approximately $7,022,226,000. Jennison Associates LLC lifted its position in shares of Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock valued at $5,793,388,000 after acquiring an additional 545,575 shares during the last quarter. Finally, Wellington Management Group LLP increased its stake in Advanced Micro Devices by 33.9% in the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after purchasing an additional 2,365,419 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 high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.