Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.6% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price dropped 1.6% during trading on Tuesday . The stock traded as low as $393.36 and last traded at $414.05. Approximately 38,514,548 shares traded hands during trading, a decline of 2% from the average daily volume of 39,372,969 shares. The stock had previously closed at $420.99.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Analysts remain bullish overall, with recent target hikes from firms including Citi and Evercore supporting the long-term AMD growth story.
• Positive Sentiment: AMD is increasingly tied to AI infrastructure demand, especially server CPUs and data-center expansion, which could support future revenue growth.
• Positive Sentiment: Potential easing of U.S.-China AI chip restrictions could be a catalyst if AMD regains more access to the China market. Article title
• Neutral Sentiment: Recent coverage continues to frame AMD as a strong growth stock, but many articles also note the shares have already had a very strong run. Article title
• Negative Sentiment: Broader chip-sector weakness and warnings that semiconductors are a crowded trade are creating near-term selling pressure. Article title
• Negative Sentiment: Heavy insider selling over the past six months is a sentiment overhang, even though it does not change AMD’s operating momentum.

Wall Street Analysts Forecast Growth

AMD has been the subject of several analyst reports. UBS Group set a $310.00 price target on Advanced Micro Devices in a research note on Wednesday, February 4th. TD Cowen upped their price target on Advanced Micro Devices from $290.00 to $500.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Cantor Fitzgerald upped their price target on Advanced Micro Devices to $500.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Jefferies Financial Group cut Advanced Micro Devices from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. Finally, KeyCorp upped their price target on Advanced Micro Devices from $330.00 to $530.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $410.00.

Advanced Micro Devices Price Performance

The company has a 50-day simple moving average of $277.92 and a 200-day simple moving average of $241.53. The stock has a market cap of $675.15 billion, a PE ratio of 135.75, a PEG ratio of 1.26 and a beta of 2.40. 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 released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.Advanced Micro Devices’s revenue was up 37.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.96 earnings per share. Sell-side analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 EPS for the current fiscal year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total value of $10,962,000.00. Following the sale, the executive vice president owned 1,236,037 shares of the company’s stock, valued at approximately $432,612,950. This represents a 2.47% 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. Over the last quarter, insiders sold 309,598 shares of company stock worth $105,644,316. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Silicon Valley Capital Partners lifted its stake in shares of Advanced Micro Devices by 4.9% in the 1st quarter. Silicon Valley Capital Partners now owns 113,591 shares of the semiconductor manufacturer’s stock valued at $23,108,000 after purchasing an additional 5,289 shares in the last quarter. Paragon Private Wealth Management LLC lifted its position in Advanced Micro Devices by 4.6% during the 1st quarter. Paragon Private Wealth Management LLC now owns 2,662 shares of the semiconductor manufacturer’s stock worth $542,000 after acquiring an additional 118 shares in the last quarter. Ariadne Wealth Management LP acquired a new position in Advanced Micro Devices during the 1st quarter worth approximately $210,000. Alexander Labrunerie & CO. Inc. lifted its position in Advanced Micro Devices by 6.5% during the 1st quarter. Alexander Labrunerie & CO. Inc. now owns 2,192 shares of the semiconductor manufacturer’s stock worth $446,000 after acquiring an additional 133 shares in the last quarter. Finally, Graney & King LLC acquired a new position in Advanced Micro Devices during the 1st quarter worth approximately $31,000. Hedge funds and other 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.