Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 2.1% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price fell 2.1% on Thursday. The company traded as low as $560.57 and last traded at $566.42. Approximately 16,086,001 shares traded hands during trading, a decline of 49% from the average daily volume of 31,640,891 shares. The stock had previously closed at $578.44.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Meta partnership strengthens AMD’s AI outlook. AMD plans to invest $1 billion in Meta’s equity offering while the companies expand a multi-generation collaboration covering Instinct GPUs, EPYC CPUs, networking and software. Meta is preparing gigawatt-scale AI deployments, testing AMD Helios systems and co-designing future architectures, potentially improving AMD’s long-term visibility and order pipeline. Advanced Micro Devices’ Meta Platforms Partnership Goes Beyond a $1 Billion Investment
• Positive Sentiment: Additional enterprise adoption supports demand. HGS selected Rackspace Technology’s private AI infrastructure platform powered by AMD, adding another customer win for AMD-based AI compute. AMD is also benefiting from agreements involving OpenAI and Anthropic, although contract structures and purchase commitments vary. HGS Selects Rackspace Technology for Private AI Infrastructure Powered by AMD
• Positive Sentiment: Analyst sentiment remains supportive. Susquehanna raised its price target to $650 and maintained a positive rating, while Aletheia Capital lifted its target to $800. Investors also anticipate continued data-center growth from EPYC processors and Instinct accelerators.
• Neutral Sentiment: AMD’s Nov. 3 earnings report is the next major catalyst. Analysts are focused on third-quarter revenue, AI accelerator demand, margins and management’s outlook. Because the stock has rallied sharply and trades at a premium valuation, merely beating estimates may not be enough; investors will likely require strong forward guidance. AMD Regaining Its $1 Trillion Valuation Faces the Ultimate Test on Nov. 3
• Negative Sentiment: AI spending concerns pressured semiconductor stocks. Alphabet’s results raised questions about the enormous cost and returns of AI infrastructure, while lighter-than-expected capital-expenditure signals from major technology companies and Samsung’s profit miss weighed on chip stocks.
• Negative Sentiment: Valuation and cost risks remain significant. AMD’s high earnings multiple leaves little room for execution disappointments. Potential price increases from TSMC for advanced packaging and wafers could compress margins unless AMD passes costs to customers. ARK Invest’s continued selling of AMD also provided a negative sentiment signal.

Analyst Ratings Changes

AMD has been the subject of several research reports. Wedbush reissued an “outperform” rating and set a $600.00 price objective on shares of Advanced Micro Devices in a research note on Tuesday, October 20th. Argus boosted their price objective on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Sanford C. Bernstein reissued an “outperform” rating and set a $650.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Robert W. Baird set a $1,250.00 target price on Advanced Micro Devices in a report on Friday, July 24th. Finally, CLSA reaffirmed an “outperform” rating and issued a $710.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, September 9th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $607.57.

Advanced Micro Devices Trading Down 2.1%

The firm’s fifty day simple moving average is $545.58 and its 200-day simple moving average is $405.90. The stock has a market cap of $924.66 billion, a P/E ratio of 145.61, a price-to-earnings-growth ratio of 5.30 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The business’s revenue was up 50.1% on a year-over-year basis. During the same period last year, the business earned $0.48 EPS. Equities research analysts expect that Advanced Micro Devices, Inc. will post 6.50 EPS for the current fiscal year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,262 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total value of $9,333,563.40. Following the completion of the sale, the executive vice president owned 353,317 shares in the company, valued at approximately $191,038,501.90. This trade represents a 4.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at $595,245,602.07. This represents 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 sold 231,100 shares of company stock valued at $114,867,400 in the last 90 days. 0.50% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. raised its holdings in shares of Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after acquiring an additional 4,535,126 shares in the last quarter. State Street Corp lifted its position in Advanced Micro Devices by 2.9% in the second 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 during the last quarter. Bank of America Corp DE purchased a new position in shares of Advanced Micro Devices during the 2nd quarter worth about $7,022,226,000. Jennison Associates LLC boosted its position in shares of Advanced Micro Devices by 5.8% during the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock valued at $5,793,388,000 after buying an additional 545,575 shares during the period. Finally, Wellington Management Group LLP raised its holdings in shares of Advanced Micro Devices by 33.9% in the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after buying an additional 2,365,419 shares during the period. 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 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.