Advanced Micro Devices (NASDAQ:AMD) Trading Down 2.4% Following Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 2.4% during mid-day trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $452.30 and last traded at $459.61. 16,044,925 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 34,318,777 shares. The stock had previously closed at $470.72.

Several other equities analysts have also weighed in on the stock. TD Cowen reiterated a “buy” rating on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Evercore reiterated an “outperform” rating and issued a $579.00 price target on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Stifel Nicolaus boosted their price objective on Advanced Micro Devices from $450.00 to $635.00 and gave the company a “buy” rating in a report on Friday, July 10th. Seaport Research Partners raised shares of Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 price target for the company in a research report on Wednesday, May 6th. Finally, Morgan Stanley raised their price objective on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $553.72.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 15,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the completion of the sale, the executive vice president directly owned 117,687 shares of the company’s stock, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Lisa T. Su sold 125,000 shares of the company’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the transaction, the chief executive officer owned 2,896,899 shares of the company’s stock, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 232,577 shares of company stock valued at $109,509,170 in the last quarter. 0.50% of the stock is owned by company insiders.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AI infrastructure demand remains a key catalyst. AMD is expanding its Saudi Arabia AI initiative with HUMAIN, targeting 250 megawatts of capacity from 2027 and potentially 1 gigawatt by 2030. The company is also participating in ASUS’s broader AI infrastructure ecosystem and has been highlighted as a potential beneficiary of the shift toward AI inference. Can AMD’s Saudi AI Buildout Challenge NVIDIA and Broadcom?
• Positive Sentiment: Analysts and prominent investors continue to see long-term upside. Commentary points to AMD’s server CPU growth, improving data-center momentum and possible gains against Intel. Tiger Global and Stanley Druckenmiller have reportedly added AMD exposure, while some analyst summaries cite substantial upside to consensus price targets. Stanley Druckenmiller Opens a Position in an AI Chip Challenger
• Neutral Sentiment: Post-earnings estimates are the next major focus. AMD exceeded quarterly revenue and EPS expectations, with revenue rising sharply year over year, but the stock has declined since the report. Investors are looking for upward or downward revisions to earnings estimates and evidence that AI growth can justify the company’s elevated valuation. Why Is Advanced Micro Down Since Its Last Earnings Report?
• Negative Sentiment: Valuation and execution concerns are weighing on sentiment. Several analyses argue AMD trades at a premium to Nvidia despite slower growth, while others flag the difficulty of converting AI demand into sustained earnings and margins. Zacks Research also downgraded AMD from “strong buy” to “hold.” Prediction: Nvidia Stock Will Outperform AMD Through 2028
• Negative Sentiment: Competitive and macro pressures remain. Nvidia’s investments and product roadmap are intended to defend its AI moat, while Broadcom’s weak guidance triggered a broader semiconductor selloff. Higher interest rates, technical resistance near recent support levels and reported ARK Invest sales of AMD shares add near-term pressure. Broadcom Falls as Soft Guidance Overshadows AI Revenue Growth

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC bought a new position in shares of Advanced Micro Devices in the fourth quarter worth $27,000. Basepoint Wealth LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at $30,000. JNBA Financial Advisors grew its position in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after purchasing an additional 30 shares in the last quarter. Finally, Graney & King LLC purchased a new position in Advanced Micro Devices during the 1st quarter valued at about $31,000. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock Up 0.0%

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The firm has a market cap of $746.15 billion, a P/E ratio of 117.50, a price-to-earnings-growth ratio of 4.76 and a beta of 2.48. The stock’s fifty day moving average is $501.61 and its two-hundred day moving average is $390.93.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same quarter last year, the company earned $0.48 earnings per share. The firm’s quarterly revenue was up 50.1% on a year-over-year basis. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current year.

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.