Advanced Micro Devices (NASDAQ:AMD) Shares Down 6.5% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 6.5% during trading on Tuesday . The company traded as low as $503.11 and last traded at $516.11. Approximately 28,776,163 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 37,410,785 shares. The stock had previously closed at $552.05.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD gained momentum after Goldman Sachs lifted its price target to $640 and other firms reiterated bullish views, reinforcing the case for continued AI-related growth. Goldman Sachs raises AMD stock price target for the rest of 2026 on surging agentic AI CPU demand
• Positive Sentiment: AMD’s CTO said the industry is underestimating a “CPU renaissance,” arguing that agentic AI will increase demand for central processing units, which could support AMD’s server and data-center opportunity. Intel vs AMD stock: which one is better positioned for a CPU renaissance?
• Positive Sentiment: News that AMD will report fiscal Q2 2026 results on August 4 is helping keep traders focused on the next earnings catalyst, especially after the company recently beat expectations in its prior quarter. AMD to Report Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: Broader chip-sector strength is also lifting AMD, as investors rotate back into AI hardware names after a recent pullback in semiconductor shares. Micron, AMD, Intel surge premarket: why chip stocks are roaring back
• Neutral Sentiment: Analysts remain split on valuation, with some saying AMD’s rally has gone far and others warning that new Intel products could limit upside. The Motor Driving AMD’s Stock Rise Is Set to Stall
• Negative Sentiment: Bearish commentary and short bets on AI chipmakers, including AMD, are adding a note of caution around stretched semiconductor valuations. Big Short fame Michael Burry is betting against Nvidia, AMD, Micron and other chipmakers. Is a massive AI crash coming?

Analyst Ratings Changes

A number of research analysts have issued reports on AMD shares. HSBC downgraded Advanced Micro Devices from a “buy” rating to a “hold” rating and boosted their price target for the company from $335.00 to $340.00 in a report on Monday, May 4th. Loop Capital raised shares of Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. KeyCorp boosted their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Raymond James Financial began coverage on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. They set a “market perform” rating on the stock. Finally, Oppenheimer cut shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $453.92.

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 simple moving average is $482.72 and its two-hundred day simple moving average is $314.89. The company has a market capitalization of $889.33 billion, a price-to-earnings ratio of 178.82, a PEG ratio of 1.52 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 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 business had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter in the prior year, the firm earned $0.96 earnings per share. The business’s revenue was up 37.8% compared to the same quarter last year. Equities research analysts predict that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer owned 2,896,899 shares of the company’s stock, valued at approximately $1,334,572,400.31. This trade represents a 4.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, Director Nora Denzel sold 8,626 shares of the company’s stock in a transaction on 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 sale, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 374,739 shares of company stock valued at $161,135,671. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Large investors have recently modified their holdings of the business. Joseph Group Capital Management acquired a new position in Advanced Micro Devices in the 4th quarter valued at about $25,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth about $27,000. Cornerstone Financial Management LLC purchased a new position in Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Basepoint Wealth LLC purchased a new position in shares of Advanced Micro Devices in the 4th quarter valued at $30,000. Finally, Graney & King LLC acquired a new position in Advanced Micro Devices during the first quarter worth approximately $31,000. Institutional investors and hedge funds 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.