Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 6.9% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 6.9% during trading on Wednesday . The stock traded as low as $538.74 and last traded at $540.88. 27,919,553 shares changed hands during trading, a decline of 26% from the average session volume of 37,638,598 shares. The stock had previously closed at $580.91.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD launched Versal Premium Gen 2 adaptive SoCs for AI, networking, aerospace, and defense workloads, expanding its reach beyond CPUs and GPUs and supporting the long-term AI growth narrative. AMD Unveils Versal Premium Gen 2 For AI And Aerospace Markets
• Positive Sentiment: Several market commentators and analysts remain bullish, arguing that AMD still has meaningful upside thanks to strong data-center demand and ongoing AI momentum, even after the recent selloff. Should Investors Buy AMD Stock after the Selloff? Here’s What Wall Street Thinks
• Positive Sentiment: Wall Street has continued raising price targets on AMD, reflecting confidence in its AI/data-center story and suggesting the recent weakness may be seen by some investors as a buying opportunity. Wall Street Keeps Hiking Its Price Targets on This AI Powerhouse
• Neutral Sentiment: Some coverage highlights that AMD is still trading at a rich valuation after a massive run, which leaves the stock vulnerable to volatility when sentiment cools. 1 Major Warning Flag AMD and Intel Investors Can’t Afford to Ignore
• Negative Sentiment: AMD fell alongside other AI chipmakers as the market rotated out of the sector and fears grew that Meta’s compute plans could alter demand dynamics for AI hardware. Meta Compute Launch Sends AI Compute Stocks Tumbling Globally
• Negative Sentiment: Reports also cited a rumored GPU price increase and general profit-taking after AMD’s recent all-time highs as reasons the stock slipped. AMD Stock Slips on a GPU Price Increase Rumor
• Negative Sentiment: Broader chip weakness and “bubble risk” concerns from large banks helped push AMD lower as investors locked in gains after the sector’s huge AI-driven rally. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Analysts Set New Price Targets

A number of research firms have recently commented on AMD. Needham & Company LLC raised Advanced Micro Devices to a “buy” rating in a research note on Wednesday, May 6th. DA Davidson increased their target price on Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Stifel Nicolaus boosted their target price on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Loop Capital upgraded shares of Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. Finally, Wedbush upped their target price on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the stock an “outperform” rating in a research note on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $448.78.

Advanced Micro Devices Stock 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 market capitalization of $844.36 billion, a P/E ratio of 169.78, a PEG ratio of 1.59 and a beta of 2.47. The company’s fifty day simple moving average is $466.47 and its 200-day simple moving average is $305.82.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company’s revenue was up 37.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.96 EPS. Research analysts predict that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insider Activity

In related news, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the sale, the executive vice president owned 1,236,037 shares of the company’s stock, valued at $432,612,950. This represents a 2.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 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 transaction, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This represents a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 378,032 shares of company stock worth $161,876,596 over the last 90 days. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of large investors have recently modified their holdings of AMD. Clal Insurance Enterprises Holdings Ltd increased its holdings in Advanced Micro Devices by 12.8% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock valued at $43,000 after buying an additional 24 shares during the period. Trust Co of the South increased its holdings in shares of Advanced Micro Devices by 1.5% in the 2nd quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer’s stock valued at $1,014,000 after acquiring an additional 25 shares during the period. CLG LLC increased its holdings in shares of Advanced Micro Devices by 3.1% in the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock valued at $205,000 after acquiring an additional 30 shares during the period. Columbia Bank raised its position in shares of Advanced Micro Devices by 0.7% in the 1st quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock worth $1,055,000 after acquiring an additional 34 shares in the last quarter. Finally, Evolution Wealth Management Inc. lifted its stake in shares of Advanced Micro Devices by 11.0% during the 1st quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock worth $72,000 after purchasing an additional 35 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company’s stock.

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.