Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 1.5% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares fell 1.5% during mid-day trading on Thursday. The company traded as low as $530.09 and last traded at $562.23. Approximately 28,481,318 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 32,273,617 shares. The stock had previously closed at $570.82.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s Helion rack-scale architecture for agentic AI, developed with an open and modular design, could strengthen its position in data-center infrastructure and help narrow Nvidia’s AI inference advantage through software improvements. What Does Advanced Micro Devices AMD Helion Mean For Its AI Ambitions?
• Positive Sentiment: Analysts and industry commentary continue to point to strong AI accelerator, data-center processor and agentic-AI demand as long-term growth drivers for AMD. AMD is also viewed by some analysts as a potential beneficiary of expanding AI compute requirements. 3 AI Infrastructure Stocks to Buy Right Now and Hold for 10 Years
• Neutral Sentiment: AMD’s credit support for Fermi’s 222-megawatt Texas power lease may expand its exposure to AI data-center infrastructure, but Fermi still faces liquidity concerns and a pending TensorWave lease decision. AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle
• Negative Sentiment: Rising Treasury yields and borrowing costs are pressuring high-growth technology valuations. Investors are also worried that debt and financing-market stress could slow spending on massive AI data centers, prompting a broad semiconductor sell-off that has affected AMD, Nvidia, Intel and Micron despite strong underlying AI demand. Rate Pressure vs. AI Demand: Rising Treasury Yields Trigger Nvidia AMD Slump
• Negative Sentiment: After a substantial year-to-date rally, AMD’s premium valuation leaves the stock vulnerable to profit-taking and concerns about execution, supply constraints, competition and whether AI customers can generate adequate returns. Reports of extensive insider selling add another cautionary signal. Advanced Micro Devices Stock Surges 183% YTD: Time to Hold or Exit?

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. CLSA reiterated an “outperform” rating and set a $710.00 price target on shares of Advanced Micro Devices in a report on Wednesday, September 9th. BMO Capital Markets initiated coverage on shares of Advanced Micro Devices in a report on Thursday, August 20th. They issued an “outperform” rating and a $550.00 price objective for the company. Cantor Fitzgerald restated an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. William Blair reaffirmed a “market perform” rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Finally, Morgan Stanley boosted their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a report on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $603.51.

Advanced Micro Devices Stock Down 1.5%

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The business’s 50 day moving average price is $534.65 and its 200-day moving average price is $469.28. The firm has a market capitalization of $917.83 billion, a PE ratio of 144.53, a P/E/G ratio of 6.26 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The company had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the prior year, the firm earned $0.48 earnings per share. The firm’s revenue was up 50.1% compared to the same quarter last year. As a group, equities research analysts forecast that Advanced Micro Devices, Inc. will post 6.45 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Paul Grasby sold 15,000 shares of Advanced Micro Devices stock in a transaction on Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the transaction, the executive vice president directly owned 117,687 shares in the company, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their position. 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. Insiders have sold a total of 213,838 shares of company stock worth $105,533,836 over the last three months. 0.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds and other institutional investors have recently modified their holdings of the company. MJT & Associates Financial Advisory Group Inc. purchased a new stake in shares of Advanced Micro Devices during the 3rd quarter worth approximately $29,000. JNBA Financial Advisors grew its position in shares of Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after buying an additional 30 shares during the last quarter. Graney & King LLC purchased a new stake in Advanced Micro Devices in the first quarter valued at $31,000. Main Street Group LTD purchased a new stake in Advanced Micro Devices in the first quarter valued at $33,000. Finally, Downshift Financial LLC boosted its stake in Advanced Micro Devices by 850.0% in the third quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer’s stock valued at $35,000 after acquiring an additional 51 shares in the last quarter. 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 semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.