Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.7% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price dropped 1.7% on Wednesday . The stock traded as low as $486.66 and last traded at $495.54. Approximately 27,239,117 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 39,045,230 shares. The stock had previously closed at $503.89.

More Advanced Micro Devices News

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

• Positive Sentiment: Wall Street remains upbeat on AMD’s AI/data center opportunity, with multiple reports highlighting accelerating demand for EPYC CPUs and Instinct AI accelerators, plus bullish commentary that the company could be a major winner in the next AI cycle. Article Title
• Positive Sentiment: Several articles say AMD is still benefiting from strong AI infrastructure enthusiasm, with bullish targets tied to rapid data center expansion and the company’s role in the broader semiconductor AI trade. Article Title
• Positive Sentiment: Analyst and media coverage continues to frame AMD as an AI infrastructure favorite with room for further earnings growth, which supports the stock’s longer-term bullish narrative. Article Title
• Positive Sentiment: AMD also gained attention from partnership news, including Rocket One joining the AMD AI Developer Program, reinforcing the company’s ecosystem-building around AI tools and developer adoption. Article Title
• Neutral Sentiment: AMD CEO Lisa Su’s lower-profile China visit and comments about China being an important market add context, but do not appear to be a major immediate stock driver on their own. Article Title
• Neutral Sentiment: Cathie Wood’s ARK trimming its AMD position may have added some caution, but it does not change the company’s core AI growth story. Article Title
• Negative Sentiment: Investor sentiment was hurt after Lisa Su was booed during her MIT commencement speech, creating an unusually negative headline around the CEO and weighing on the stock. Article Title
• Negative Sentiment: Some coverage suggests AMD’s strong rally may have left less room for mistakes, with analysts warning valuation is already rich and expectations are high. Article Title

Wall Street Analyst Weigh In

AMD has been the topic of several research reports. JPMorgan Chase & Co. upped their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Stifel Nicolaus upped their price objective on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Roth Mkm reiterated a “buy” rating and issued a $500.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. TD Cowen increased their price target on shares of Advanced Micro Devices from $290.00 to $500.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Oppenheimer downgraded shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $410.00.

Advanced Micro Devices Stock Performance

The firm’s 50-day moving average price is $321.45 and its 200 day moving average price is $253.87. The company has a market cap of $824.54 billion, a price-to-earnings ratio of 165.57, a PEG ratio of 1.46 and a beta of 2.40. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter last year, the firm earned $0.96 EPS. Advanced Micro Devices’s quarterly revenue was up 37.8% compared to the same quarter last year. On average, sell-side analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Activity

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction that occurred 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 transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at approximately $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 329,085 shares of company stock worth $114,051,007 over the last quarter. 0.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $4,929,312,000. Jennison Associates LLC raised its position in shares of Advanced Micro Devices by 181.6% in the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock valued at $2,336,552,000 after purchasing an additional 7,035,991 shares during the period. Cardano Risk Management B.V. bought a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $1,000,783,000. Wellington Management Group LLP raised its position 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 valued at $784,330,000 after purchasing an additional 3,735,807 shares during the period. Finally, Franklin Resources Inc. raised its position in shares of Advanced Micro Devices by 340.1% in the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $1,016,796,000 after purchasing an additional 3,669,054 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 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.