Advanced Micro Devices (NASDAQ:AMD) Stock Price Crosses Below 200-Day Moving Average – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $413.90 and traded as low as $402.10. Advanced Micro Devices shares last traded at $404.40, with a volume of 70,315,774 shares traded.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD reported record third-quarter revenue, up about 45% year over year, with data-center revenue nearly doubling. Management expects fourth-quarter revenue of roughly $17 billion and has forecast revenue growth above 80% in 2027, reinforcing the potential for AI and data-center demand to drive further gains. Article: Is AMD Stock a Buy as AI Revenue Soars?
• Positive Sentiment: CEO Lisa Su pushed back against concerns about AI spending, arguing that the market is taking a short-term view and reaffirming her confidence in sustained demand for computing power. Article: AMD CEO Lisa Su Calls This Market Moment ‘Short-Sighted’ on AI Spending
• Neutral Sentiment: Some analysts raised their price targets after the results, including DZ Bank to $620 and HSBC to $540; HSBC nevertheless kept a Hold rating, reflecting continued debate over how much growth is already reflected in AMD’s valuation. Article: DZ Bank Adjusts Price Target on Advanced Micro Devices to $620
• Negative Sentiment: The main near-term pressure was a broad chip-sector sell-off following Democratic midterm gains. Investors fear potential AI-industry regulation or slower data-center expansion, and concern about local resistance to data centers added to worries over future AI spending. The sector weakness weighed on AMD despite its earnings beat. Article: Why AMD Stock Is Down Today
• Negative Sentiment: Investors are also questioning AMD’s premium valuation and demanding evidence that its AI products and partnerships will translate into durable profits. Ark Invest’s reported sale of AMD shares in favor of Nvidia added to the competitive and valuation concerns. Article: Cathie Wood Just Sold AMD Stock and Bought This AI Chip Stock Instead

Wall Street Analysts Forecast Growth

AMD has been the topic of a number of analyst reports. Raymond James Financial reissued a “strong-buy” rating and issued a $649.00 target price on shares of Advanced Micro Devices in a research note on Wednesday. Piper Sandler raised their price target on shares of Advanced Micro Devices from $600.00 to $650.00 and gave the stock an “overweight” rating in a research note on Wednesday. Union Gaming Research reaffirmed a “positive” rating on shares of Advanced Micro Devices in a report on Wednesday. Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 1st. Finally, Wells Fargo & Company lowered their price objective on Advanced Micro Devices from $700.00 to $650.00 and set an “overweight” rating on the stock in a research note on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $633.17.

Advanced Micro Devices Trading Down 17.3%

The company has a quick ratio of 1.91, a current ratio of 2.72 and a debt-to-equity ratio of 0.10. The firm has a market cap of $660.17 billion, a price-to-earnings ratio of 87.91, a price-to-earnings-growth ratio of 5.01 and a beta of 2.49. The business’s fifty day moving average is $547.37 and its two-hundred day moving average is $413.90.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.14. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The firm had revenue of $13.38 billion for the quarter, compared to the consensus estimate of $13.10 billion. During the same quarter in the prior year, the business earned $1.20 EPS. The business’s revenue for the quarter was up 44.7% compared to the same quarter last year. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, EVP Forrest Norrod sold 17,262 shares of the company’s stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the transaction, the executive vice president owned 353,317 shares of the company’s stock, valued at $191,038,501.90. This represents a 4.66% decrease in their ownership of the stock. The sale 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, CEO Lisa Su sold 25,000 shares of the firm’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $506.79, for a total value of $12,669,750.00. Following the completion of the transaction, the chief executive officer owned 74,211 shares in the company, valued at approximately $37,609,392.69. This represents a 25.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. First Citizens Financial Corp grew its stake in shares of Advanced Micro Devices by 3.4% during the third quarter. First Citizens Financial Corp now owns 490 shares of the semiconductor manufacturer’s stock worth $300,000 after purchasing an additional 16 shares during the period. Fearless Solutions LLC dba Best Invest increased its holdings in Advanced Micro Devices by 1.5% in the third quarter. Fearless Solutions LLC dba Best Invest now owns 1,174 shares of the semiconductor manufacturer’s stock valued at $718,000 after purchasing an additional 17 shares during the last quarter. Private Client Services LLC lifted its stake in Advanced Micro Devices by 1.7% in the third quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock valued at $660,000 after buying an additional 18 shares during the period. Essential Investment Partners LLC lifted its stake in Advanced Micro Devices by 40.0% in the third quarter. Essential Investment Partners LLC now owns 63 shares of the semiconductor manufacturer’s stock valued at $39,000 after buying an additional 18 shares during the period. Finally, CKW Financial Group lifted its stake in Advanced Micro Devices by 1.3% in the third quarter. CKW Financial Group now owns 1,450 shares of the semiconductor manufacturer’s stock valued at $893,000 after buying an additional 18 shares during the period. 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 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.