Advanced Micro Devices (NASDAQ:AMD) Shares Down 3.5% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded down 3.5% during mid-day trading on Wednesday . The company traded as low as $509.57 and last traded at $529.14. 27,709,056 shares traded hands during mid-day trading, a decline of 25% from the average daily volume of 36,835,059 shares. The stock had previously closed at $548.13.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Multiple Wall Street firms raised AMD price targets, reinforcing confidence in the company’s AI and server growth outlook, including UBS, Bank of America, Goldman Sachs and KeyBanc.
• Positive Sentiment: Analysts expect AMD to benefit from surging demand for AI servers and accelerators, with some calling for a beat-and-raise quarter ahead of earnings.
• Positive Sentiment: Reports highlighted AMD’s MI450 and Helios rack-scale efforts as a stronger competitive challenge to Nvidia, supporting the long-term AI thesis.
• Neutral Sentiment: AMD remains a headline AI trade, which is keeping the stock volatile as investors rotate between optimism on growth and concerns about valuation.
• Negative Sentiment: Broader semiconductor weakness is weighing on AMD, with Micron’s decline and “crowded trade” concerns sparking sector-wide selling.
• Negative Sentiment: Some coverage suggests AMD’s sharp run-up may make the stock vulnerable to profit-taking when the semiconductor group softens.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Zacks Research cut shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Erste Group Bank raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a research report on Thursday, April 2nd. Royal Bank Of Canada upped their price target on Advanced Micro Devices from $325.00 to $400.00 and gave the stock a “sector perform” rating in a research note on Wednesday, May 6th. TD Cowen raised their price target on Advanced Micro Devices from $600.00 to $675.00 and gave the stock a “buy” rating in a research report on Monday. Finally, Mizuho lifted their price objective on Advanced Micro Devices from $515.00 to $615.00 and gave the company an “outperform” rating in a research note on Monday, June 1st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average price target of $468.65.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $862.82 billion, a PE ratio of 173.49, a P/E/G ratio of 1.57 and a beta of 2.47. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The firm’s 50 day moving average is $499.06 and its two-hundred day moving average is $324.25.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating 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 company had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter last year, the company posted $0.96 EPS. The firm’s revenue was up 37.8% compared to the same quarter last year. As a group, research analysts predict that Advanced Micro Devices, Inc. will post 6.18 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the sale, the director owned 87,173 shares of the company’s stock, valued at $45,504,306. This trade represents a 9.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction dated 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 completion of the transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at $140,000,947.80. The trade was a 5.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 368,739 shares of company stock valued at $159,602,431 in the last 90 days. Insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

A number of large investors have recently made changes to their positions in the company. Norges Bank acquired a new stake in Advanced Micro Devices during the fourth quarter worth approximately $4,929,312,000. Jennison Associates LLC lifted its holdings in shares of Advanced Micro Devices by 181.6% in the 4th 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 last quarter. Cardano Risk Management B.V. purchased a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $1,000,783,000. Wellington Management Group LLP raised its position in Advanced Micro Devices by 335.9% in the 3rd 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 last quarter. Finally, Franklin Resources Inc. increased its stake in 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. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

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.