Advanced Micro Devices (NASDAQ:AMD) Trading Down 5.8% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares fell 5.8% during mid-day trading on Tuesday . The company traded as low as $506.81 and last traded at $519.85. 29,294,034 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 37,889,266 shares. The stock had previously closed at $551.63.

More Advanced Micro Devices News

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

• Positive Sentiment: UBS reportedly raised its AMD price target to $670, highlighting the company’s data-center momentum and long-term server CPU opportunity, which supports the stock’s valuation. Why Is AMD Stock Gaining Thursday?
• Positive Sentiment: Micron’s strong earnings were taken as another sign that AI infrastructure spending remains robust, helping sentiment across semiconductor names including AMD. Why Is AMD Stock Gaining Thursday?
• Positive Sentiment: Gartner called AMD the “company to beat” for enterprise AI server CPUs, reinforcing optimism that AMD can gain share in a key growth market. Gartner Says AMD Is the ‘Company to Beat for Enterprise AI Server CPUs’
• Positive Sentiment: Goldman and Bernstein both pointed to AI-driven CPU demand as a tailwind for AMD, with analysts remaining constructive on the stock relative to peers. Goldman Says INTC Will Benefit From AI. So Why Does It Favor AMD, NVDA, and AVGO?
• Positive Sentiment: AMD’s Rackspace agreement and its MEXT acquisition continue to broaden its AI infrastructure story beyond GPUs, which investors may view as strategically important. Advanced Micro Devices (AMD) and Rackspace Technology Sign a Definitive Agreement
• Neutral Sentiment: Several articles framed AMD as a strong long-term AI winner versus peers like Nvidia, Marvell, and Intel, but these were mostly valuation and comparison pieces rather than fresh company-specific catalysts. AMD vs. Marvell Technology: Which Will Be the Next Trillion-Dollar Stock?

Wall Street Analysts Forecast Growth

Several analysts have recently commented on AMD shares. Benchmark lifted their price target on Advanced Micro Devices from $325.00 to $485.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Northland Securities reissued a “market perform” rating and issued a $260.00 price objective on shares of Advanced Micro Devices in a research note on Monday, April 27th. Loop Capital upgraded Advanced Micro Devices to a “strong-buy” rating in a research report on Tuesday, June 16th. BTIG Research upgraded Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a research note on Wednesday, February 25th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $440.41.

Advanced Micro Devices Price 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’s 50 day moving average price is $434.39 and its two-hundred day moving average price is $292.31. The firm has a market capitalization of $832.29 billion, a price-to-earnings ratio of 168.74, a P/E/G ratio of 1.53 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter last year, the firm earned $0.96 earnings per share. The business’s revenue for the quarter was up 37.8% on a year-over-year basis. Analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the completion of the sale, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. The trade was a 5.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the sale, the executive vice president directly owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 378,032 shares of company stock worth $161,876,596. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Large investors have recently added to or reduced their stakes in the business. Clal Insurance Enterprises Holdings Ltd boosted its holdings in Advanced Micro Devices by 12.8% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock worth $43,000 after purchasing an additional 24 shares in the last quarter. CLG LLC increased its position in Advanced Micro Devices by 3.1% during the first quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock worth $205,000 after buying an additional 30 shares during the last quarter. Columbia Bank raised its holdings in Advanced Micro Devices by 0.7% during the first quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock valued at $1,055,000 after buying an additional 34 shares in the last quarter. Evolution Wealth Management Inc. raised its holdings in Advanced Micro Devices by 11.0% during the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock valued at $72,000 after buying an additional 35 shares in the last quarter. Finally, Focused Wealth Management Inc lifted its position in shares of Advanced Micro Devices by 2.7% in the first quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock worth $291,000 after buying an additional 37 shares during the last quarter. 71.34% of the stock is owned by institutional investors.

About Advanced Micro Devices

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.