Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 5.5% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded down 5.5% during mid-day trading on Wednesday . The stock traded as low as $424.03 and last traded at $429.7460. 31,828,313 shares changed hands during mid-day trading, a decline of 12% from the average session volume of 36,291,965 shares. The stock had previously closed at $454.62.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD’s infrastructure partnership with Core Scientific provides access to more than 500 megawatts of U.S. data-center capacity beginning in 2027, with potential expansion to 2.5 gigawatts. The arrangement is intended to accelerate deployments of AMD Instinct GPUs, EPYC CPUs, and ROCm software by addressing power and data-center availability constraints. Core Scientific signs AI infrastructure deal with AMD
• Positive Sentiment: Analyst sentiment remains constructive following AMD’s Advancing AI event. Mizuho raised its price target to $625, citing the Helios rack platform, Venice CPUs, and reported customer commitments, while Erste Group increased its FY2026 and FY2027 EPS estimates and maintained a Buy rating. Analyst sees AMD stock charging toward an AI breakout
• Positive Sentiment: Some investors view the sell-off as a buying opportunity, arguing AMD can benefit as the leading challenger in AI chips and gain share from customers seeking an alternative to Nvidia. Guinness Asset Management also disclosed a new approximately $57 million AMD position.
• Neutral Sentiment: AMD is scheduled to report second-quarter results on August 4. Options markets imply substantial volatility, and investors are focused on whether AI accelerator demand, data-center growth, and forward guidance justify the stock’s high earnings multiple.
• Negative Sentiment: The semiconductor sell-off spread from Asia to U.S. chipmakers after SK Hynix’s results did not meet heightened AI-trade expectations. Investors are also reassessing demand durability, Chinese competition, and the cost of financing new AI infrastructure. Nvidia, Micron, AMD sink as SK Hynix results fail to impress
• Negative Sentiment: Valuation remains a significant risk: AMD trades at a very high earnings multiple, leaving little room for weaker guidance or execution problems. Reports of a new 4 GB GPU and warnings about AI expansion risks added to investor caution, while disclosed insider activity shows sales and no open-market purchases in recent months.

Analysts Set New Price Targets

AMD has been the topic of several recent research reports. KeyCorp lifted their target price on shares of Advanced Micro Devices from $530.00 to $725.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Evercore restated an “outperform” rating and issued a $579.00 price target on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. Weiss Ratings raised shares of Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, May 6th. Mizuho lifted their price target on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a report on Monday. Finally, Erste Group Bank raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Thursday, April 2nd. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $528.11.

Advanced Micro Devices Stock Performance

The firm has a market capitalization of $700.74 billion, a P/E ratio of 140.90 and a beta of 2.47. The stock has a fifty day simple moving average of $514.89 and a two-hundred day simple moving average of $345.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company’s revenue was up 37.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.96 earnings per share. On average, research analysts predict that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer directly owned 2,896,899 shares in the company, valued at approximately $1,334,572,400.31. This trade represents a 4.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 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 sale, the executive vice president directly owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 310,310 shares of company stock worth $141,185,456 over the last ninety days. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Clal Insurance Enterprises Holdings Ltd increased its holdings in shares of Advanced Micro Devices by 12.8% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock valued at $43,000 after purchasing an additional 24 shares in the last quarter. Trust Co of the South boosted its holdings in Advanced Micro Devices by 1.5% during the second quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer’s stock worth $1,014,000 after buying an additional 25 shares in the last quarter. Beaird Harris Wealth Management LLC boosted its holdings in Advanced Micro Devices by 9.4% during the second quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the semiconductor manufacturer’s stock worth $169,000 after buying an additional 25 shares in the last quarter. Veery Capital LLC grew its position in Advanced Micro Devices by 1.0% during the second quarter. Veery Capital LLC now owns 2,793 shares of the semiconductor manufacturer’s stock worth $1,622,000 after buying an additional 27 shares during the period. Finally, Arlington Trust Co LLC grew its position in Advanced Micro Devices by 3.3% during the second quarter. Arlington Trust Co LLC now owns 915 shares of the semiconductor manufacturer’s stock worth $532,000 after buying an additional 29 shares during the period. Institutional investors own 71.34% of the company’s stock.

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.