Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 6.9% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 6.9% during trading on Wednesday . The company traded as low as $538.74 and last traded at $540.88. 27,919,553 shares changed hands during trading, a decline of 26% from the average daily volume of 37,638,598 shares. The stock had previously closed at $580.91.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Wells Fargo raised its price target on AMD to $615 from $505 and kept an Overweight rating, citing stronger AI-driven server CPU demand and improved long-term visibility. AMD Gets a Price Target Hike Thanks to Surging CPU Demand
• Positive Sentiment: Other analysts also turned more bullish, with additional target hikes and Street-high forecasts reinforcing the view that AMD’s data center and AI businesses are still accelerating. 5-star analyst resets AMD stock price target, but it’s not about GPUs
• Positive Sentiment: AMD expanded its AI reach with new Versal Premium Gen 2 MoP SoCs, a move aimed at compact AI, networking, defense and video systems that could broaden the company’s addressable market. AMD Expands AI Reach With Versal Premium Gen 2 MoP SoCs: What’s Ahead?
• Positive Sentiment: Multiple reports highlighted AMD’s outsized second-quarter rally and its approach toward a $1 trillion valuation, reflecting strong momentum in AI semiconductors and broad investor enthusiasm for the stock. Record chip rally adds $2 trillion in combined value to Micron, Intel and AMD in second quarter
• Neutral Sentiment: Several market commentary pieces noted that AMD’s huge year-to-date gains and recent record highs make the shares look technically stretched, which helps explain why some investors are locking in profits. Why Is AMD Stock Down Today, 7/1/26?
• Negative Sentiment: Broader semiconductor weakness and “bubble risk” concerns triggered a pullback in the group, putting pressure on AMD despite its strong fundamentals. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on AMD. Stifel Nicolaus increased their price objective on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Roth Mkm restated a “buy” rating and issued a $500.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Wedbush upped their target price on Advanced Micro Devices from $290.00 to $400.00 and gave the company an “outperform” rating in a report on Monday, May 4th. The Goldman Sachs Group upgraded Advanced Micro Devices from a “buy” rating to a “buy” rating in a research report on Friday, June 12th. Finally, Bank of America boosted their price objective on Advanced Micro Devices from $500.00 to $560.00 and gave the company a “buy” rating in a research report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $448.78.

Advanced Micro Devices Stock Down 6.9%

The stock has a fifty day moving average of $456.48 and a 200-day moving average of $301.41. The firm has a market capitalization of $881.96 billion, a price-to-earnings ratio of 177.34, a PEG ratio of 1.59 and a beta of 2.50. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to the consensus estimate 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 for the quarter was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.96 earnings per share. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Activity

In other Advanced Micro Devices news, 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 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the business’s 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 transaction, the director directly owned 87,173 shares of the company’s stock, valued at $45,504,306. This represents a 9.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 378,032 shares of company stock valued at $161,876,596. Corporate insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in shares of Advanced Micro Devices by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock valued at $33,949,256,000 after purchasing an additional 2,525,109 shares during the period. State Street Corp lifted its position in shares of Advanced Micro Devices by 1.5% during the 4th quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock worth $16,044,712,000 after buying an additional 1,094,835 shares during the period. Geode Capital Management LLC boosted its stake in Advanced Micro Devices by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock valued at $8,015,897,000 after buying an additional 287,525 shares in the last quarter. Norges Bank acquired a new stake in Advanced Micro Devices in the 4th quarter valued at $4,929,312,000. Finally, Price T Rowe Associates Inc. MD grew its position in Advanced Micro Devices by 0.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock valued at $4,352,864,000 after acquiring an additional 55,969 shares during the period. Institutional investors and hedge funds 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.