Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.9% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price fell 3.9% on Thursday. The stock traded as low as $613.34 and last traded at $620.68. Approximately 23,312,932 shares were traded during trading, a decline of 28% from the average daily volume of 32,601,613 shares. The stock had previously closed at $645.86.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s data-center revenue reportedly surged 107% year over year to $6.7 billion, highlighting strong demand for its AI accelerators and server processors. Industry forecasts also point to continued expansion in global AI infrastructure spending. AMD Stock: Drops Despite Record Revenue and Surging AI Data Center Demand
• Positive Sentiment: TSMC reported record quarterly revenue, up 50% year over year and above expectations, providing evidence that demand for AMD and other AI processors remains robust. Nvidia and AMD Fuel a $46.7B TSMC Quarter
• Positive Sentiment: CEO Lisa Su’s discussions with Samsung and SK Hynix could strengthen AMD’s access to memory and foundry capacity as AI-related supply constraints persist. AMD also plans to report third-quarter results on November 3, giving investors a near-term catalyst. AMD CEO Says AMD Continues to Explore Foundry Partnership With Samsung
• Neutral Sentiment: Analyst sentiment remains generally constructive, including a major price-target increase from Citi and a bullish BNP Paribas view. However, AMD’s valuation has risen sharply, leaving little room for execution or earnings disappointments. Citi’s Price Target Boost Lifts AMD Shares
• Negative Sentiment: Rising Treasury yields and oil prices are increasing inflation and interest-rate concerns, pressuring high-growth technology multiples and prompting investors to rotate out of heavily valued AI stocks. Reports also note extensive insider selling, although these transactions may reflect scheduled profit-taking rather than a change in business fundamentals. Why Are Intel and AMD Stocks Plunging?

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on AMD shares. Loop Capital raised Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. Rosenblatt Securities reaffirmed a “buy” rating and set a $700.00 price target on shares of Advanced Micro Devices in a research report on Tuesday, September 29th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $650.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. William Blair reissued a “market perform” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Finally, JPMorgan Chase & Co. increased their target price on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $585.26.

Advanced Micro Devices Stock Down 3.9%

The stock has a market capitalization of $1.01 trillion, a P/E ratio of 159.56, a price-to-earnings-growth ratio of 6.73 and a beta of 2.45. The stock’s fifty day simple moving average is $523.60 and its two-hundred day simple moving average is $455.44. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the prior year, the business posted $0.48 earnings per share. Advanced Micro Devices’s quarterly revenue was up 50.1% on a year-over-year basis. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Mark Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. The trade was a 2.23% decrease in their position. The transaction 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, EVP Jean X. Hu sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the transaction, the executive vice president owned 160,979 shares in the company, valued at $76,316,924.32. This represents a 8.52% 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 sold a total of 213,838 shares of company stock valued at $105,533,836 in the last 90 days. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently made changes to their positions in AMD. Artemis Investment Management LLP increased its stake in Advanced Micro Devices by 18.3% in the 3rd quarter. Artemis Investment Management LLP now owns 213,096 shares of the semiconductor manufacturer’s stock valued at $130,364,000 after buying an additional 32,954 shares during the last quarter. Aletheian Wealth Advisors LLC boosted its stake in shares of Advanced Micro Devices by 28.6% in the 3rd quarter. Aletheian Wealth Advisors LLC now owns 1,692 shares of the semiconductor manufacturer’s stock worth $1,035,000 after buying an additional 376 shares during the last quarter. YHB Investment Advisors Inc. grew its holdings in shares of Advanced Micro Devices by 97.3% in the third quarter. YHB Investment Advisors Inc. now owns 2,803 shares of the semiconductor manufacturer’s stock valued at $1,715,000 after acquiring an additional 1,382 shares in the last quarter. Apella Capital LLC grew its holdings in shares of Advanced Micro Devices by 15.6% in the third quarter. Apella Capital LLC now owns 9,851 shares of the semiconductor manufacturer’s stock valued at $6,362,000 after acquiring an additional 1,327 shares in the last quarter. Finally, Everhart Financial Group Inc. increased its position in shares of Advanced Micro Devices by 8.9% during the third quarter. Everhart Financial Group Inc. now owns 19,821 shares of the semiconductor manufacturer’s stock valued at $12,451,000 after acquiring an additional 1,612 shares during the last quarter. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.