Advanced Micro Devices (NASDAQ:AMD) Stock Falls 6% – Here’s Why

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) were down 6% on Friday. The company traded as low as $526.83 and last traded at $528.75. Approximately 22,344,251 shares changed hands during mid-day trading, a decline of 31% from the average daily volume of 32,225,340 shares. The stock had previously closed at $562.23.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Analysts remain constructive on AMD’s long-term AI opportunity. Arete raised its price target to $612 from $540, while coverage highlights strong data-center growth, AI accelerator momentum and AMD’s open Helios rack-scale architecture. Arete Adjusts Price Target on Advanced Micro Devices to $612 From $540
• Positive Sentiment: AMD’s credit-support agreement for Fermi’s 222-megawatt Texas data-center project could strengthen its position in AI infrastructure and potentially support additional hardware demand. AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle
• Neutral Sentiment: Exchange-traded funds were net sellers of AMD on October 14, adding evidence of institutional repositioning during the semiconductor pullback. AMD’s next major scheduled catalyst is its third-quarter 2026 results on November 3. ETFs Are Net Sellers of Advanced Micro Devices (AMD) on Oct. 14
• Negative Sentiment: A broad chip selloff intensified after a Qualcomm jury verdict, with Arm, AMD and other semiconductor stocks pressured together. Investors are questioning whether extremely high AI-infrastructure spending can continue at its recent pace, particularly as rising Treasury yields and higher-for-longer interest rates make expensive growth stocks more vulnerable to valuation compression. Arm and AMD Fall 5% as Qualcomm Verdict Adds to Chip Selloff
• Negative Sentiment: AMD’s elevated valuation and high volatility are increasing downside sensitivity if AI demand or spending expectations cool. Reports also point to extensive recent insider selling, including sales by senior executives, which may weigh on sentiment even though it does not necessarily indicate deteriorating business fundamentals. AMD Slides as Chip Selloff Continues and Investors Reassess AI Spending

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Jefferies Financial Group set a $650.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. BMO Capital Markets assumed coverage on Advanced Micro Devices in a research note on Thursday, August 20th. They issued an “outperform” rating and a $550.00 target price for the company. Wedbush reaffirmed an “outperform” rating and issued a $600.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Raymond James Financial raised Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and upped their price target for the stock from $565.00 to $641.00 in a research note on Tuesday, August 25th. Finally, JPMorgan Chase & Co. boosted their price objective on Advanced Micro Devices from $385.00 to $550.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $603.51.

Advanced Micro Devices Stock Performance

The company has a 50-day moving average of $536.11 and a 200-day moving average of $471.82. The company has a market cap of $863.17 billion, a PE ratio of 135.93, a PEG ratio of 5.90 and a beta of 2.45. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the previous year, the firm earned $0.48 EPS. The business’s revenue for the quarter was up 50.1% compared to the same quarter last year. As a group, analysts anticipate that Advanced Micro Devices, Inc. will post 6.45 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares in the company, valued at $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,261 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $503.05, for a total value of $8,683,146.05. Following the transaction, the executive vice president owned 363,317 shares of the company’s stock, valued at $182,766,616.85. The trade was a 4.54% 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. Insiders have sold a total of 213,838 shares of company stock valued at $105,533,836 in the last three months. 0.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. boosted its stake in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. State Street Corp grew its position in shares of Advanced Micro Devices by 2.9% during the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after purchasing an additional 2,149,563 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Advanced Micro Devices by 15.9% in the fourth quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer’s stock worth $3,313,758,000 after purchasing an additional 2,124,867 shares during the period. Bank of America Corp DE bought a new position in shares of Advanced Micro Devices in the second quarter worth $7,022,226,000. Finally, Jennison Associates LLC raised its position in shares of Advanced Micro Devices by 5.8% in the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after buying an additional 545,575 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

About Advanced Micro Devices

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.