Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.6% After Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price fell 3.6% during trading on Thursday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $499.87 and last traded at $523.20. 28,917,141 shares were traded during trading, a decline of 25% from the average session volume of 38,518,813 shares. The stock had previously closed at $542.52.

AMD has been the subject of a number of other reports. HSBC downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and increased their price target for the company from $335.00 to $340.00 in a research report on Monday, May 4th. Benchmark upped their target price on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. DA Davidson increased their target price on shares of Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Sanford C. Bernstein raised shares of Advanced Micro Devices from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $265.00 to $525.00 in a research report on Wednesday, May 6th. Finally, Bank of America boosted their price target on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and thirteen have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $419.86.

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the sale, the chief executive officer directly owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This trade represents a 3.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 transaction of $8,406,691.80. Following the completion of the sale, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This 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. Insiders have sold 339,532 shares of company stock valued at $119,504,341 over the last three months. Insiders own 0.50% of the company’s stock.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Analysts remain constructive on AMD’s long-term AI growth story, with recent firm price targets well above current levels, including bullish calls from Barclays, TD Cowen, and Mizuho. CPU Demand Rapidly Rising Amid Expanding Agentic AI, Says Barclays, Raises PT On Advanced Micro (AMD) To $665
• Positive Sentiment: AMD’s latest quarterly results were strong, with revenue up 37.8% year over year and earnings topping expectations, reinforcing the company’s fundamental growth momentum. Advanced Micro Devices Price Performance
• Positive Sentiment: Some market commentary continues to highlight AMD as a major beneficiary of AI infrastructure spending, especially as demand for CPUs and AI servers expands. Forget GPUs: AMD, NVDA, INTC, ARM Are Chasing AI’s Next Big Prize — The $120B CPU Market
• Neutral Sentiment: AMD remains one of the most watched semiconductor names, so heightened investor attention may be amplifying volatility around the stock. Advanced Micro Devices, Inc. (AMD) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Comments from TSMC suggesting AI chip supply will stay tight for years support the broader chip demand backdrop, but also underscore that the sector is still operating under capacity constraints. TSMC CEO Warns Chip Supply Won’t Meet AI-Fueled Demand for Years
• Negative Sentiment: AMD is being dragged down by the broader chip rout after Broadcom’s earnings and AI guidance failed to meet elevated expectations, prompting a reassessment of the AI trade. Intel, AMD stocks slide again in aftermath of Broadcom’s weak outlook
• Negative Sentiment: Several reports say AMD has fallen alongside other major semiconductor names as investors lock in profits after a strong run in AI-related stocks. AMD, Broadcom, Quantinuum, and More Stocks That Explain Today’s Market
• Negative Sentiment: AMD’s recent surge has also left some investors worried about valuation, with commentary suggesting the stock may have gotten ahead of near-term fundamentals. Advanced Micro Devices (AMD) Stock Surges on Analyst Upgrades — But Valuation Concerns Linger

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently bought and sold shares of the company. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $25,000. Koesten Hirschmann & Crabtree INC. increased its stake in Advanced Micro Devices by 61.0% in the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors acquired a new stake in Advanced Micro Devices in the 4th quarter valued at $27,000. Cornerstone Financial Management LLC bought a new stake in Advanced Micro Devices during the 4th quarter worth about $27,000. Finally, Basepoint Wealth LLC bought a new stake in Advanced Micro Devices during the 4th quarter worth about $30,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Advanced Micro Devices Stock Performance

The stock’s 50 day moving average price is $358.36 and its 200 day moving average price is $264.99. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $760.48 billion, a price-to-earnings ratio of 152.91, a P/E/G ratio of 1.54 and a beta of 2.50.

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

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.