Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 1.2% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was down 1.2% on Friday . The stock traded as low as $476.06 and last traded at $483.36. 26,426,925 shares traded hands during trading, a decline of 27% from the average session volume of 36,159,789 shares. The stock had previously closed at $489.28.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD agreed to acquire Toronto-based Taalas, a specialist in customized AI inference silicon. Integrating Taalas’ technology with AMD Instinct GPUs could improve inference speed and efficiency, strengthening AMD’s ability to compete with Nvidia in a rapidly expanding market. The purchase price was not disclosed. AMD deepens AI inference bet with Taalas deal
• Positive Sentiment: AMD’s second-quarter results exceeded estimates: revenue rose 50.1% year over year to $11.54 billion and EPS reached $1.66 versus a $1.62 consensus forecast. Data Center revenue more than doubled, while management provided a strong outlook, including approximately 41% expected growth. Several analysts remained bullish, with Rosenblatt raising its price target to $700 and JPMorgan lifting its target to $550, though JPMorgan retained a neutral rating. AMD Q2 earnings beat estimates
• Neutral Sentiment: Institutional filings showed PNC Financial and GF Fund Management increased their AMD holdings by roughly $166 million and $168 million, respectively, as of June 30. These purchases indicate institutional confidence but are lagging disclosures rather than a direct near-term catalyst.
• Negative Sentiment: The earnings reaction reflects a very high bar for AI growth. Investors were disappointed by the outlook’s perceived conservatism, near-term weakness in PC/client and gaming businesses, and uncertainty about margins and AMD’s ability to take meaningful share from Nvidia. With AMD trading at a premium valuation, strong execution was not enough to satisfy expectations. AMD drops after Q2 earnings

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on AMD. Barclays downgraded shares of Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research note on Friday, June 12th. Bank of America increased their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Citigroup upgraded shares of Advanced Micro Devices from a “market perform” rating to a “buy” rating in a research report on Wednesday, July 22nd. Melius Research set a $660.00 price objective on Advanced Micro Devices in a research note on Friday, July 24th. Finally, Zacks Research upgraded shares of Advanced Micro Devices from a “hold” rating to a “strong-buy” rating in a report on Monday. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and an average target price of $546.87.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $788.17 billion, a P/E ratio of 124.26 and a beta of 2.48. The stock has a 50 day simple moving average of $515.22 and a two-hundred day simple moving average of $358.23. The company has a quick ratio of 1.96, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 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 firm had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter last year, the company posted $0.48 earnings per share. The company’s revenue for the quarter was up 50.1% compared to the same quarter last year. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.34 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the sale, the director owned 87,173 shares in the company, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the sale, the executive vice president owned 324,527 shares of the company’s stock, valued at $140,000,947.80. This trade 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. Over the last 90 days, insiders sold 285,934 shares of company stock worth $130,353,006. Company insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in AMD. Norges Bank acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $4,929,312,000. Jennison Associates LLC boosted its position in Advanced Micro Devices by 181.6% during the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after buying an additional 7,035,991 shares during the period. Cardano Risk Management B.V. acquired a new position in shares of Advanced Micro Devices during the fourth quarter worth $1,000,783,000. BlackRock Inc. lifted its holdings in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after buying an additional 4,535,126 shares during the period. Finally, Wellington Management Group LLP lifted its stake in shares of Advanced Micro Devices by 335.9% in the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock worth $784,330,000 after acquiring an additional 3,735,807 shares during the period. 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.