Advanced Micro Devices (NASDAQ:AMD) Shares Down 8.1% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded down 8.1% during mid-day trading on Tuesday . The company traded as low as $442.27 and last traded at $454.62. 35,888,649 shares changed hands during mid-day trading, a decline of 1% from the average daily volume of 36,289,223 shares. The stock had previously closed at $494.95.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Analyst upgrades strengthened the bullish case. Susquehanna raised its AMD price target from $450 to $500 and assigned a “Positive” rating ahead of the company’s Aug. 4 earnings report. Wedbush separately lifted its target to $600, citing expected acceleration in AMD’s data-center business from Microsoft and Anthropic partnerships. Susquehanna raises AMD price target
• Positive Sentiment: AI infrastructure demand remains the key catalyst. AMD’s agreement with Core Scientific provides more than 500 megawatts of U.S. data-center capacity beginning in 2027, with an option to expand to 2.5 gigawatts. Bernstein estimates the partnership could generate roughly $14 billion in revenue over 15 years, while Wedbush views it as evidence that AMD is addressing the infrastructure bottleneck limiting AI-chip deployments. Bernstein estimates AMD Core Scientific deal value
• Positive Sentiment: Broader confidence in AI spending lifted AMD. Microsoft’s stronger-than-expected cloud results helped ease concerns about a slowdown in hyperscaler investment. An Anthropic developer’s comments about the need for more powerful CPUs also highlighted potential demand for AMD’s server processors. AMD and Intel rebound on AI infrastructure optimism
• Neutral Sentiment: Earnings are the next major test. Investors are focused on AMD’s second-quarter results and outlook, with expectations for continued revenue and earnings growth. The company’s prior quarter exceeded consensus estimates, but its elevated valuation leaves little room for disappointing guidance.
• Negative Sentiment: Valuation and competitive risks remain. Recent reports cited concerns about AMD’s high earnings multiple, increased competition from China and custom AI-chip developers, and reports of a new 4 GB GPU. In addition, recent institutional filings showed some fund reductions, while AMD insiders have reported selling shares without open-market purchases. AMD valuation and China technology risks

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on AMD shares. William Blair restated a “market perform” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. DA Davidson increased their price target on shares of Advanced Micro Devices from $375.00 to $425.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. UBS Group reissued an “overweight” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Mizuho boosted their price objective on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a research report on Monday. Finally, Morgan Stanley upped their price objective on Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $529.46.

Advanced Micro Devices Price Performance

The firm has a market capitalization of $792.20 billion, a price-to-earnings ratio of 159.47 and a beta of 2.47. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The company’s fifty day moving average is $514.54 and its two-hundred day moving average is $346.81.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. The firm had revenue of $10.25 billion during 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 business’s quarterly revenue was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.96 EPS. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Paul Darren Grasby sold 24,376 shares of the business’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 owned 87,173 shares of the company’s stock, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 310,310 shares of company stock valued at $141,185,456 in the last ninety days. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Regent Peak Wealth Advisors LLC increased its position in shares of Advanced Micro Devices by 1.1% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 5,938 shares of the semiconductor manufacturer’s stock valued at $3,449,000 after buying an additional 66 shares in the last quarter. Wedge Capital Management L L P NC bought a new position in Advanced Micro Devices during the second quarter worth about $822,000. Annex Advisory Services LLC grew its stake in Advanced Micro Devices by 28.3% in the second quarter. Annex Advisory Services LLC now owns 1,991 shares of the semiconductor manufacturer’s stock valued at $1,157,000 after acquiring an additional 439 shares during the period. Accel Wealth Management grew its stake in Advanced Micro Devices by 1.4% in the second quarter. Accel Wealth Management now owns 5,372 shares of the semiconductor manufacturer’s stock valued at $3,121,000 after acquiring an additional 74 shares during the period. Finally, Whitener Capital Management Inc. bought a new stake in shares of Advanced Micro Devices in the second quarter worth about $549,000. Institutional investors and hedge funds 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.