Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 7.5% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 7.5% on Thursday . The stock traded as low as $203.43 and last traded at $203.77. Approximately 48,547,193 shares changed hands during mid-day trading, an increase of 27% from the average daily volume of 38,245,250 shares. The stock had previously closed at $220.27.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Market enthusiasm for higher CPU pricing and AI demand remains a clear bullish driver — reports that AMD (and Intel) plan CPU price increases and strong data‑center demand lifted sentiment this week, supporting revenue and margin upside potential. The Silicon Squeeze: AI Pricing Power Lifts Chip Stocks
• Positive Sentiment: AMD added an enterprise angle to its AI story by partnering with CIQ to release an AMD‑optimized Rocky Linux distribution for AI/HPC, which could simplify deployments for customers standardizing on AMD stacks. That helps the long‑term data‑center adoption case. AMD Linux Push With CIQ Adds New Angle To AI Investment Story
• Positive Sentiment: Analyst sentiment and price targets remain supportive — multiple buy/overweight ratings and a median six‑month target well above current levels keep upside scenarios intact. Quiver Quant: AMD analyst ratings and price targets
• Neutral Sentiment: Product news: AMD disclosed details on the new Ryzen 9 9950X3D2 CPU — important for the consumer/desktop cycle but the launch hasn’t clearly moved today’s intraday direction vs. data‑center drivers. AMD Stock Drops Despite Ryzen 9 9950X3D2 Launch Details
• Neutral Sentiment: Macro/ETF context: tech ETFs and QQQM commentary note earnings strength but price lag — AMD moves can be amplified by flows in large tech ETFs and recent rotation dynamics. As Tech Earnings Grow, This ETF Still Hasn’t Caught Up (AMD)
• Negative Sentiment: Profit‑taking and intraday weakness: AMD pulled back after a ~7% rally yesterday; broader market weakness and rising rates pressured chip names today, contributing to the decline. Advanced Micro Devices Retreats After a 7% Rally
• Negative Sentiment: Insider selling is heavy: public filings show repeated insider sales over recent months (no purchases reported), which can weigh on investor sentiment even if the sales are for diversification or tax reasons. Quiver Quant: AMD insider trading activity
• Negative Sentiment: Near‑term vulnerability: some market commentators flag chipmakers as sensitive to rate moves and rotation, adding risk that momentum reversals or macro headlines could deepen the pullback. NVDA, INTC and AMD Forecasts – Chip Makers Look Vulnerable Again

Wall Street Analyst Weigh In

A number of equities analysts recently commented on AMD shares. Truist Financial set a $283.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, February 4th. Mizuho lifted their price target on Advanced Micro Devices from $275.00 to $280.00 and gave the company an “outperform” rating in a report on Wednesday, February 25th. Rosenblatt Securities reissued a “buy” rating and issued a $300.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, February 4th. Morgan Stanley decreased their price objective on Advanced Micro Devices from $260.00 to $255.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 4th. Finally, DA Davidson upgraded Advanced Micro Devices to a “hold” rating in a research note on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $290.53.

Advanced Micro Devices Stock Performance

The firm has a fifty day moving average price of $214.59 and a 200 day moving average price of $212.43. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.01 and a current ratio of 2.85. The stock has a market cap of $332.23 billion, a PE ratio of 76.89, a price-to-earnings-growth ratio of 0.77 and a beta of 1.98.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.21. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The company had revenue of $10.27 billion for the quarter, compared to analyst estimates of $9.65 billion. During the same period in the prior year, the company posted $1.09 EPS. The firm’s quarterly revenue was up 34.1% compared to the same quarter last year. Research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $214.36, for a total value of $26,795,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,152,476 shares of the company’s stock, valued at $675,764,755.36. This trade represents a 3.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Forrest Eugene Norrod sold 19,450 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $216.81, for a total transaction of $4,216,954.50. Following the completion of the sale, the executive vice president owned 289,098 shares of the company’s stock, valued at $62,679,337.38. This trade represents a 6.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 239,392 shares of company stock worth $50,016,383. 0.06% of the stock is owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Large investors have recently made changes to their positions in the stock. Old North State Trust LLC raised its stake in Advanced Micro Devices by 73.2% in the 4th quarter. Old North State Trust LLC now owns 5,260 shares of the semiconductor manufacturer’s stock worth $1,126,000 after acquiring an additional 2,223 shares during the last quarter. J. Derek Lewis & Associates Inc. purchased a new stake in Advanced Micro Devices during the 4th quarter valued at about $584,000. Purpose Unlimited Inc. acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $18,251,000. Stance Capital LLC raised its stake in shares of Advanced Micro Devices by 204.1% in the fourth quarter. Stance Capital LLC now owns 25,773 shares of the semiconductor manufacturer’s stock worth $5,519,000 after purchasing an additional 17,299 shares during the last quarter. Finally, Cornerstone Planning LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter worth about $5,024,000. 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 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.