Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.9% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 1.9% on Friday . The company traded as low as $475.76 and last traded at $476.15. Approximately 26,348,275 shares changed hands during trading, a decline of 27% from the average daily volume of 36,203,738 shares. The stock had previously closed at $485.39.

More Advanced Micro Devices News

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

• Positive Sentiment: Reports that AMD may raise GPU prices in August are supporting the shares by suggesting strong demand and potential margin improvement. AMD Stock Jumps as Reports Point to a GPU Price Increase in August
• Positive Sentiment: AMD’s agreement to lease up to 2.5 gigawatts of data-center capacity from Core Scientific strengthens its ability to support AI deployments. Bernstein estimates the partnership could generate roughly $14 billion in revenue over 15 years. Mining For Megawatts: AMD’s Billion-Dollar Grid Grab
• Positive Sentiment: Analyst support is improving: Susquehanna raised its price target from $450 to $500 and maintained a positive rating, while Wedbush cited Microsoft and Anthropic partnerships in lifting its target to $600. Susquehanna Just Upped Its Price Target on AMD Stock
• Positive Sentiment: Management continues to emphasize demand for EPYC server CPUs, Instinct accelerators and Ryzen AI products. Longer term, investors are also encouraged by commentary that AI workloads require more powerful CPUs. Should You Buy AMD Stock Ahead of Q2 Earnings?
• Neutral Sentiment: The August 4 earnings report is the immediate catalyst. Investors will focus on data-center growth, AI accelerator demand, guidance and evidence that recent partnerships are translating into revenue.
• Negative Sentiment: AMD’s valuation remains demanding, with a reported price-to-earnings ratio near 160. Fierce competition from NVIDIA and other chipmakers means substantial execution and growth are already reflected in expectations.
• Negative Sentiment: The stock remains volatile after a sharp July pullback, and the wider semiconductor sector is still recovering from an AI-trade unwind triggered partly by underwhelming SK Hynix results. AI Trade Unwinds After SK Hynix Results

Wall Street Analyst Weigh In

AMD has been the subject of a number of research reports. Raymond James Financial assumed coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They issued a “market perform” rating for the company. Seaport Research Partners upgraded shares of Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 target price for the company in a research note on Wednesday, May 6th. Susquehanna boosted their price objective on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “positive” rating in a research report on Thursday. Jefferies Financial Group boosted their target price on Advanced Micro Devices from $515.00 to $640.00 and gave the company a “buy” rating in a report on Friday, July 24th. Finally, Needham & Company LLC raised Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $529.46.

Advanced Micro Devices Price Performance

The company’s 50 day simple moving average is $515.25 and its 200-day simple moving average is $348.80. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $776.41 billion, a price-to-earnings ratio of 156.12 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the prior year, the company posted $0.96 EPS. The company’s quarterly revenue was up 37.8% compared to the same quarter last year. On average, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.27 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s stock in a transaction on 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 transaction, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This represents a 5.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $3,217,980.00. Following the transaction, the executive vice president owned 1,233,687 shares of the company’s stock, valued at approximately $661,663,348.71. This represents a 0.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 310,310 shares of company stock worth $141,185,456 over the last 90 days. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AMD. Clal Insurance Enterprises Holdings Ltd lifted its position in shares of Advanced Micro Devices by 12.8% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock worth $43,000 after buying an additional 24 shares during the last quarter. Trust Co of the South grew its position in shares of Advanced Micro Devices by 1.5% in the 2nd quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer’s stock valued at $1,014,000 after buying an additional 25 shares during the last quarter. Beaird Harris Wealth Management LLC raised its stake in Advanced Micro Devices by 9.4% during the 2nd quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the semiconductor manufacturer’s stock worth $169,000 after acquiring an additional 25 shares in the last quarter. Veery Capital LLC raised its stake in Advanced Micro Devices by 1.0% during the 2nd quarter. Veery Capital LLC now owns 2,793 shares of the semiconductor manufacturer’s stock worth $1,622,000 after acquiring an additional 27 shares in the last quarter. Finally, Arlington Trust Co LLC lifted its position in Advanced Micro Devices by 3.3% in the second quarter. Arlington Trust Co LLC now owns 915 shares of the semiconductor manufacturer’s stock valued at $532,000 after acquiring an additional 29 shares during the last quarter. Institutional investors and hedge funds 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 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.