Advanced Micro Devices (NASDAQ:AMD) Shares Down 5.5% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 5.5% during trading on Wednesday . The stock traded as low as $424.03 and last traded at $429.7460. Approximately 31,828,313 shares traded hands during trading, a decline of 12% from the average daily volume of 36,291,965 shares. The stock had previously closed at $454.62.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s infrastructure partnership with Core Scientific provides access to more than 500 megawatts of U.S. data-center capacity beginning in 2027, with potential expansion to 2.5 gigawatts. The arrangement is intended to accelerate deployments of AMD Instinct GPUs, EPYC CPUs, and ROCm software by addressing power and data-center availability constraints. Core Scientific signs AI infrastructure deal with AMD
• Positive Sentiment: Analyst sentiment remains constructive following AMD’s Advancing AI event. Mizuho raised its price target to $625, citing the Helios rack platform, Venice CPUs, and reported customer commitments, while Erste Group increased its FY2026 and FY2027 EPS estimates and maintained a Buy rating. Analyst sees AMD stock charging toward an AI breakout
• Positive Sentiment: Some investors view the sell-off as a buying opportunity, arguing AMD can benefit as the leading challenger in AI chips and gain share from customers seeking an alternative to Nvidia. Guinness Asset Management also disclosed a new approximately $57 million AMD position.
• Neutral Sentiment: AMD is scheduled to report second-quarter results on August 4. Options markets imply substantial volatility, and investors are focused on whether AI accelerator demand, data-center growth, and forward guidance justify the stock’s high earnings multiple.
• Negative Sentiment: The semiconductor sell-off spread from Asia to U.S. chipmakers after SK Hynix’s results did not meet heightened AI-trade expectations. Investors are also reassessing demand durability, Chinese competition, and the cost of financing new AI infrastructure. Nvidia, Micron, AMD sink as SK Hynix results fail to impress
• Negative Sentiment: Valuation remains a significant risk: AMD trades at a very high earnings multiple, leaving little room for weaker guidance or execution problems. Reports of a new 4 GB GPU and warnings about AI expansion risks added to investor caution, while disclosed insider activity shows sales and no open-market purchases in recent months.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. Truist Financial set a $478.00 price objective on Advanced Micro Devices in a research note on Wednesday, May 6th. Robert W. Baird set a $1,250.00 target price on Advanced Micro Devices in a research report on Friday, July 24th. Barclays lowered Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a report on Friday, June 12th. Royal Bank Of Canada restated a “sector perform” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a research report on Friday, July 24th. Finally, Wolfe Research set a $450.00 price target on Advanced Micro Devices and gave the stock an “outperform” rating in a research note on Monday, June 15th. 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 stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $528.11.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company has a 50-day moving average price of $514.89 and a 200-day moving average price of $345.23. The firm has a market capitalization of $700.74 billion, a PE ratio of 140.90 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The firm’s revenue for the quarter was up 37.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.96 EPS. Sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 6,000 shares of the firm’s stock in a transaction that occurred on 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 sale, the executive vice president owned 1,233,687 shares in the company, valued at approximately $661,663,348.71. This trade represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction that occurred 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 sale, the executive vice president directly owned 324,527 shares of the company’s stock, valued at $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 310,310 shares of company stock valued at $141,185,456. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Brighton Jones LLC grew its holdings in Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after buying an additional 29,438 shares during the period. Revolve Wealth Partners LLC lifted its holdings in shares of Advanced Micro Devices by 2.9% during the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock worth $1,001,000 after acquiring an additional 234 shares during the period. Sivia Capital Partners LLC boosted its position in shares of Advanced Micro Devices by 125.1% in the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after acquiring an additional 2,970 shares during the last quarter. United Bank boosted its position in shares of Advanced Micro Devices by 22.0% in the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock worth $1,881,000 after acquiring an additional 2,392 shares during the last quarter. Finally, Schnieders Capital Management LLC. grew its holdings in Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock valued at $1,310,000 after purchasing an additional 7,228 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 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.