Advanced Micro Devices (NASDAQ:AMD) Shares Down 5.3% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares fell 5.3% during mid-day trading on Thursday . The company traded as low as $491.80 and last traded at $500.94. 26,911,360 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 36,762,039 shares. The stock had previously closed at $529.14.

Key Advanced Micro Devices News

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

• Positive Sentiment: BNP Paribas raised its price target on AMD to $600, signaling confidence in the long-term AI cycle even as it expects a muted near-term earnings season. AMD’s $600 Target Isn’t Really About AMD
• Positive Sentiment: KeyBanc lifted its AMD price target after Asia supply-chain checks, reinforcing the view that demand remains intact for chipmakers. NVDA, MU, AMD: KeyBanc Raises Price Targets After Asia Supply Chain Checks
• Positive Sentiment: AMD also announced Alan Smith as its newest Corporate Fellow, highlighting continued technical leadership in GPU architecture and AI computing. AMD Appoints Alan Smith as Newest Corporate Fellow
• Positive Sentiment: Recent analyst updates continued to be constructive, including higher targets from Goldman Sachs, UBS, Rosenblatt, and others, which helps offset short-term sentiment weakness. Advanced Micro Devices, Inc. (AMD) Stock Surges as Goldman Sees Big Earnings Coming

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AMD. Cantor Fitzgerald raised their price objective on shares of Advanced Micro Devices from $500.00 to $700.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Northland Securities restated a “market perform” rating and issued a $260.00 target price on shares of Advanced Micro Devices in a report on Monday, April 27th. Wall Street Zen downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research report on Sunday. William Blair started coverage on shares of Advanced Micro Devices in a research note on Thursday, July 9th. They set a “market perform” rating on the stock. Finally, Stifel Nicolaus boosted their price target on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $468.65.

Advanced Micro Devices Price Performance

The firm has a market capitalization of $816.83 billion, a price-to-earnings ratio of 164.24, a P/E/G ratio of 1.61 and a beta of 2.47. The company has a fifty day moving average price of $501.23 and a two-hundred day moving average price of $326.46. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company’s revenue for the quarter was up 37.8% compared to the same quarter last year. During the same period last year, the firm posted $0.96 earnings per share. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.18 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s 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 sale, the executive vice president directly owned 324,527 shares of the company’s stock, valued at approximately $140,000,947.80. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the sale, the chief executive officer owned 2,896,899 shares of the company’s stock, valued at $1,334,572,400.31. This trade represents a 4.14% 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 341,630 shares of company stock worth $152,147,456 in the last three months. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC grew its stake in shares of Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after purchasing an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC raised its stake in shares of Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock worth $1,001,000 after purchasing an additional 234 shares during the last quarter. Sivia Capital Partners LLC raised its stake in shares of Advanced Micro Devices by 125.1% during the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after purchasing an additional 2,970 shares during the last quarter. United Bank lifted its holdings in shares of Advanced Micro Devices by 22.0% during the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock worth $1,881,000 after purchasing an additional 2,392 shares during the period. Finally, Schnieders Capital Management LLC. lifted its holdings in shares of Advanced Micro Devices by 361.0% during the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after purchasing an additional 7,228 shares during the period. 71.34% of the stock is 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.