Advanced Micro Devices (NASDAQ:AMD) Shares Down 8.1% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 8.1% during trading on Thursday. The stock traded as low as $502.60 and last traded at $507.93. 27,465,379 shares were traded during mid-day trading, a decline of 14% from the average daily volume of 31,990,016 shares. The stock had previously closed at $552.72.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD continues to secure long-term AI infrastructure demand. Vultr announced plans to deploy AMD Instinct MI355X GPUs in a new 20-megawatt supercluster in India, while other reports highlighted hyperscaler interest and the company’s strategy to build a broader AI computing stack. Vultr and AMD Expand Global Collaboration with New AI Infrastructure in India
• Positive Sentiment: Susquehanna raised its AMD price target to $620 from $550 and maintained a positive rating. Wedbush also reaffirmed its Outperform rating, reflecting continued confidence in server CPU demand and AI growth. Susquehanna AMD price target update
• Neutral Sentiment: ETFs reportedly purchased approximately $185.9 million of AMD shares on Tuesday, potentially providing technical support, although broader fund flows remain sensitive to the market-wide retreat from AI and semiconductor stocks. ETFs Bought $185.9 Million of AMD
• Negative Sentiment: A supply warning from a semiconductor-equipment company intensified concerns about chip availability and pressured AMD and other data-center chipmakers. Softer PC market conditions added to the selling. Chip Stocks Fall as Supply Warning Deepens AI Selloff
• Negative Sentiment: Nvidia’s push into standalone CPUs and agentic-AI systems creates a new competitive threat in a market historically led by AMD and Intel. Nvidia Enters the CPU Market
• Negative Sentiment: Investors are questioning whether AI capital spending will generate adequate returns. With AMD’s stock priced for substantial future growth, concerns about valuation and profit-taking are amplifying the decline. Reports also noted that AMD insiders have made numerous sales without reported open-market purchases in recent months.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on AMD. Cantor Fitzgerald restated an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. Bank of America lifted their price target on shares of Advanced Micro Devices from $620.00 to $720.00 and gave the company a “buy” rating in a research note on Friday, September 25th. Wedbush reiterated an “outperform” rating and set a $600.00 target price on shares of Advanced Micro Devices in a report on Tuesday. Roth Capital boosted their price target on Advanced Micro Devices from $500.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Finally, Citigroup increased their target price on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the company a “buy” rating in a research report on Tuesday, October 6th. Three investment 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’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $606.76.

Advanced Micro Devices Stock Down 8.1%

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The business’s 50-day simple moving average is $541.49 and its 200-day simple moving average is $483.21. The company has a market capitalization of $829.18 billion, a PE ratio of 130.57, a price-to-earnings-growth ratio of 5.49 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $11.31 billion. During the same period in the prior year, the company earned $0.48 earnings per share. The firm’s revenue was up 50.1% on a year-over-year basis. As a group, equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other news, SVP Ava Hahn sold 2,993 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the sale, the senior vice president directly owned 26,623 shares of the company’s stock, valued at $13,010,393.87. This represents a 10.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the sale, the executive vice president directly owned 160,979 shares in the company, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 231,100 shares of company stock worth $114,867,400. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently modified their holdings of AMD. Southpoint Capital Advisors LP boosted its stake in Advanced Micro Devices by 50.0% during the first quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock worth $183,087,000 after buying an additional 300,000 shares during the last quarter. Boomfish Wealth Group LLC acquired a new position in Advanced Micro Devices during the 1st quarter worth about $1,193,000. Dimensional Fund Advisors LP grew its holdings in shares of Advanced Micro Devices by 6.0% in the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock valued at $1,045,954,000 after purchasing an additional 291,165 shares in the last quarter. Ferguson Wellman Capital Management Inc. grew its stake in Advanced Micro Devices by 6,968.7% during the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 140,313 shares of the semiconductor manufacturer’s stock worth $85,995,000 after purchasing an additional 138,328 shares in the last quarter. Finally, Douglas Lane & Associates LLC raised its holdings in Advanced Micro Devices by 2,748.0% in the third quarter. Douglas Lane & Associates LLC now owns 85,952 shares of the semiconductor manufacturer’s stock valued at $52,582,000 after acquiring an additional 82,934 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Advanced Micro Devices Company Profile

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.