Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 2.1% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 2.1% during trading on Thursday. The stock traded as low as $560.57 and last traded at $566.42. Approximately 16,086,001 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 31,640,891 shares. The stock had previously closed at $578.44.

Key Advanced Micro Devices News

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

• Positive Sentiment: Meta partnership strengthens AMD’s AI outlook. AMD plans to invest $1 billion in Meta’s equity offering while the companies expand a multi-generation collaboration covering Instinct GPUs, EPYC CPUs, networking and software. Meta is preparing gigawatt-scale AI deployments, testing AMD Helios systems and co-designing future architectures, potentially improving AMD’s long-term visibility and order pipeline. Advanced Micro Devices’ Meta Platforms Partnership Goes Beyond a $1 Billion Investment
• Positive Sentiment: Additional enterprise adoption supports demand. HGS selected Rackspace Technology’s private AI infrastructure platform powered by AMD, adding another customer win for AMD-based AI compute. AMD is also benefiting from agreements involving OpenAI and Anthropic, although contract structures and purchase commitments vary. HGS Selects Rackspace Technology for Private AI Infrastructure Powered by AMD
• Positive Sentiment: Analyst sentiment remains supportive. Susquehanna raised its price target to $650 and maintained a positive rating, while Aletheia Capital lifted its target to $800. Investors also anticipate continued data-center growth from EPYC processors and Instinct accelerators.
• Neutral Sentiment: AMD’s Nov. 3 earnings report is the next major catalyst. Analysts are focused on third-quarter revenue, AI accelerator demand, margins and management’s outlook. Because the stock has rallied sharply and trades at a premium valuation, merely beating estimates may not be enough; investors will likely require strong forward guidance. AMD Regaining Its $1 Trillion Valuation Faces the Ultimate Test on Nov. 3
• Negative Sentiment: AI spending concerns pressured semiconductor stocks. Alphabet’s results raised questions about the enormous cost and returns of AI infrastructure, while lighter-than-expected capital-expenditure signals from major technology companies and Samsung’s profit miss weighed on chip stocks.
• Negative Sentiment: Valuation and cost risks remain significant. AMD’s high earnings multiple leaves little room for execution disappointments. Potential price increases from TSMC for advanced packaging and wafers could compress margins unless AMD passes costs to customers. ARK Invest’s continued selling of AMD also provided a negative sentiment signal.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Stifel Nicolaus lifted their target price on shares of Advanced Micro Devices from $635.00 to $700.00 and gave the company a “buy” rating in a report on Monday, October 5th. Truist Financial boosted their target price on shares of Advanced Micro Devices from $478.00 to $594.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. William Blair reissued a “market perform” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Zacks Research downgraded shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 1st. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Advanced Micro Devices in a research note on Monday, October 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $607.57.

Advanced Micro Devices Stock Performance

The firm has a market cap of $924.66 billion, a P/E ratio of 145.61, a P/E/G ratio of 5.30 and a beta of 2.45. The company’s 50 day moving average is $545.58 and its 200 day moving average is $405.90. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the company earned $0.48 EPS. Advanced Micro Devices’s quarterly revenue was up 50.1% compared to the same quarter last year. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other news, EVP Jean X. Hu sold 15,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares in the company, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of Advanced Micro Devices stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the completion of the transaction, the senior vice president directly owned 26,623 shares of the company’s stock, valued at $13,010,393.87. This trade represents a 10.11% 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 have sold 231,100 shares of company stock worth $114,867,400. 0.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of AMD. Bank of America Corp DE purchased a new stake in shares of Advanced Micro Devices in the second quarter valued at about $7,022,226,000. BlackRock Inc. grew its stake in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after acquiring an additional 4,535,126 shares during the period. Jupiter Topco LLC purchased a new stake in Advanced Micro Devices in the 2nd quarter valued at about $2,084,651,000. Wellington Management Group LLP grew its position in Advanced Micro Devices by 33.9% during the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock valued at $5,422,444,000 after acquiring an additional 2,365,419 shares during the period. Finally, State Street Corp grew its stake in Advanced Micro Devices by 2.9% during the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after buying an additional 2,149,563 shares during the period. 71.34% of the stock is owned by hedge funds and other institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

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