Advanced Micro Devices (NASDAQ:AMD) Stock Gets Downgrade from Wall Street Zen

Advanced Micro Devices (NASDAQ:AMD) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also commented on the stock. KeyCorp set a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Truist Financial boosted their price target on shares of Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $650.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. CLSA reiterated an “outperform” rating and issued a $710.00 target price on shares of Advanced Micro Devices in a report on Wednesday, September 9th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $700.00 price objective on shares of Advanced Micro Devices in a research note on Tuesday, September 29th. 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 issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $607.57.

Advanced Micro Devices Stock Performance

Shares of Advanced Micro Devices stock opened at $504.80 on Friday. The business has a 50 day moving average price of $548.29 and a 200-day moving average price of $409.20. Advanced Micro Devices has a 52 week low of $188.22 and a 52 week high of $658.52. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The company has a market cap of $824.07 billion, a PE ratio of 129.77, a price-to-earnings-growth ratio of 5.18 and a beta of 2.49.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. Advanced Micro Devices’s quarterly revenue was up 50.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.48 earnings per share. Equities analysts anticipate that Advanced Micro Devices will post 6.50 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 28,811 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the transaction, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total value of $1,462,649.17. Following the sale, the senior vice president 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. 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 231,100 shares of company stock valued at $114,867,400 over the last 90 days. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Chicago Partners Investment Group LLC grew its holdings in Advanced Micro Devices by 0.8% during the third quarter. Chicago Partners Investment Group LLC now owns 81,064 shares of the semiconductor manufacturer’s stock valued at $41,893,000 after purchasing an additional 680 shares during the period. Smallwood Wealth Investment Management LLC boosted its stake in shares of Advanced Micro Devices by 9.9% during the 3rd quarter. Smallwood Wealth Investment Management LLC now owns 234 shares of the semiconductor manufacturer’s stock valued at $143,000 after buying an additional 21 shares during the last quarter. 3Chopt Investment Partners LLC boosted its position in shares of Advanced Micro Devices by 14.3% in the 3rd quarter. 3Chopt Investment Partners LLC now owns 3,388 shares of the semiconductor manufacturer’s stock valued at $2,073,000 after purchasing an additional 424 shares during the period. Rakuten Investment Management Inc. bought a new stake in shares of Advanced Micro Devices in the third quarter valued at about $281,754,000. Finally, Serenity Investment Advisors acquired a new stake in Advanced Micro Devices in the third quarter worth $222,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s data-center revenue reportedly nearly doubled, and its Helios rack-scale systems, EPYC processors and Instinct GPUs are being deployed in Meta’s AI infrastructure. The companies also expanded their relationship through a planned $1 billion equity investment and multigeneration chip collaboration. AMD Expands AI Footprint With Meta
• Positive Sentiment: Rackspace selected AMD-powered infrastructure for HGS’s private AI deployment, adding another enterprise use case for AMD’s data-center products. HGS Selects Rackspace Technology for Private AI Infrastructure
• Positive Sentiment: Rakuten Investment Management disclosed a new approximately $283.7 million AMD position, while many large institutions—including JPMorgan, Invesco, FMR and BlackRock—reported adding shares in recent quarters. Rakuten Opens AMD Position
• Positive Sentiment: Analyst targets remain broadly above the current share price, with a reported six-month median target of $512.50 and several targets ranging from $560 to $700.
• Neutral Sentiment: AMD is scheduled to report third-quarter results on Nov. 3. Investors will focus on data-center growth, AI accelerator demand, supply constraints and management’s outlook for 2027.
• Neutral Sentiment: Recent commentary highlights a sharply divided outlook: AMD’s AI growth is accelerating, but its valuation leaves little room for an earnings or guidance disappointment. AMD Earnings Preview
• Negative Sentiment: Intel’s disappointing fourth-quarter forecast, weak PC-market conditions and margin concerns triggered a broad semiconductor selloff. Investors are questioning whether AMD faces similar demand or supply pressures. AMD Shares Slide After Intel Earnings
• Negative Sentiment: Several reports argue AMD is priced more aggressively than NVIDIA despite slower expected growth, making the stock vulnerable to profit-taking before earnings. AMD Reports on Nov. 3
• Negative Sentiment: Insiders have reported 147 open-market sales and no purchases over the past six months, including substantial sales by CEO Lisa Su and other executives. Cathie Wood’s ARK Invest has also continued trimming AMD, adding to near-term sentiment pressure.

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.