Advanced Micro Devices (NASDAQ:AMD) Shares Down 3.5% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded down 3.5% during mid-day trading on Wednesday . The company traded as low as $509.57 and last traded at $529.14. 27,709,056 shares traded hands during trading, a decline of 25% from the average daily volume of 36,835,059 shares. The stock had previously closed at $548.13.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Multiple Wall Street firms raised AMD price targets, reinforcing confidence in the company’s AI and server growth outlook, including UBS, Bank of America, Goldman Sachs and KeyBanc.
• Positive Sentiment: Analysts expect AMD to benefit from surging demand for AI servers and accelerators, with some calling for a beat-and-raise quarter ahead of earnings.
• Positive Sentiment: Reports highlighted AMD’s MI450 and Helios rack-scale efforts as a stronger competitive challenge to Nvidia, supporting the long-term AI thesis.
• Neutral Sentiment: AMD remains a headline AI trade, which is keeping the stock volatile as investors rotate between optimism on growth and concerns about valuation.
• Negative Sentiment: Broader semiconductor weakness is weighing on AMD, with Micron’s decline and “crowded trade” concerns sparking sector-wide selling.
• Negative Sentiment: Some coverage suggests AMD’s sharp run-up may make the stock vulnerable to profit-taking when the semiconductor group softens.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. UBS Group reaffirmed a “buy” rating and set a $700.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday. Seaport Research Partners raised Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 target price on the stock in a report on Wednesday, May 6th. Roth Capital restated a “buy” rating and set a $500.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Cantor Fitzgerald increased their price target on Advanced Micro Devices from $500.00 to $700.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Finally, BTIG Research upgraded shares of Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $468.65.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The company has a 50-day simple moving average of $499.06 and a 200-day simple moving average of $324.25. The company has a market cap of $862.82 billion, a price-to-earnings ratio of 173.49, a PEG ratio of 1.57 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate 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 business had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same period last year, the firm earned $0.96 EPS. The company’s quarterly revenue was up 37.8% compared to the same quarter last year. As a group, research analysts predict that Advanced Micro Devices, Inc. will post 6.18 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other news, Director Nora Denzel sold 8,626 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares in the company, valued at $45,504,306. This trade represents a 9.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Mark D. Papermaster sold 6,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the sale, the executive vice president owned 1,233,687 shares of the company’s stock, valued at $661,663,348.71. This trade represents a 0.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 368,739 shares of company stock worth $159,602,431. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Joseph Group Capital Management purchased a new position in Advanced Micro Devices in the 4th quarter valued at approximately $25,000. Sarver Vrooman Wealth Advisors purchased a new stake in Advanced Micro Devices during the fourth quarter worth $27,000. Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices in the fourth quarter valued at $27,000. Basepoint Wealth LLC acquired a new stake in Advanced Micro Devices in the fourth quarter valued at $30,000. Finally, Graney & King LLC purchased a new position in shares of Advanced Micro Devices in the first quarter valued at $31,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.