Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 10.9% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares dropped 10.9% during trading on Friday. The company traded as low as $492.21 and last traded at $504.80. Approximately 39,390,815 shares changed hands during trading, an increase of 24% from the average session volume of 31,684,773 shares. The stock had previously closed at $566.42.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD’s expanding partnership with Meta Platforms includes a reported $1 billion equity investment, multi-generation chip co-design and a potential 6-gigawatt AI infrastructure deployment. The agreement strengthens AMD’s position in data-center CPUs, Instinct GPUs and Helios rack systems. Advanced Micro Devices’ Meta Platforms Partnership Goes Beyond a $1 Billion Investment
• Positive Sentiment: Recent reports highlight that AMD’s data-center revenue nearly doubled, with management forecasting additional acceleration. Helios systems are reportedly shipping ahead of schedule, supporting the bullish AI infrastructure thesis. AMD Expands AI Footprint With Meta
• Positive Sentiment: Some analysts remain constructive, with reported price targets above the current trading level and expectations that strong data-center results could support further upside after earnings.

Wall Street Analyst Weigh In

AMD has been the topic of several recent research reports. Melius Research set a $660.00 price objective on shares of Advanced Micro Devices in a research report on Friday, July 24th. Sanford C. Bernstein restated an “outperform” rating and set a $650.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Zacks Research downgraded shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 1st. Bank of America boosted their price target on Advanced Micro Devices from $620.00 to $720.00 and gave the stock a “buy” rating in a research report on Friday, September 25th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Advanced Micro Devices in a research note on Monday, October 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $607.57.

Advanced Micro Devices Stock Down 10.9%

The stock has a market capitalization of $824.07 billion, a P/E ratio of 129.77, a P/E/G ratio of 5.94 and a beta of 2.45. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The firm’s fifty day moving average is $547.58 and its 200-day moving average is $407.71.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The business had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the business posted $0.48 earnings per share. The firm’s revenue for the quarter was up 50.1% compared to the same quarter last year. As a group, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

Insider Buying and Selling

In related news, SVP Ava Hahn sold 2,993 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the sale, the senior vice president directly owned 26,623 shares in the company, valued at $13,010,393.87. This trade represents a 10.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 25,000 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the completion of the sale, the chief executive officer owned 74,211 shares in the company, valued at approximately $37,609,392.69. This trade represents a 25.20% decrease in their ownership of the stock. 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 231,100 shares of company stock worth $114,867,400 over the last quarter. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds have recently made changes to their positions in the business. First Citizens Financial Corp increased its holdings in shares of Advanced Micro Devices by 3.4% in the third quarter. First Citizens Financial Corp now owns 490 shares of the semiconductor manufacturer’s stock valued at $300,000 after purchasing an additional 16 shares during the last quarter. Fearless Solutions LLC dba Best Invest raised its holdings in Advanced Micro Devices by 1.5% in the 3rd quarter. Fearless Solutions LLC dba Best Invest now owns 1,174 shares of the semiconductor manufacturer’s stock valued at $718,000 after acquiring an additional 17 shares in the last quarter. Private Client Services LLC increased its stake in Advanced Micro Devices by 1.7% in the third quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock valued at $660,000 after acquiring an additional 18 shares during the last quarter. Essential Investment Partners LLC raised its stake in Advanced Micro Devices by 40.0% during the third quarter. Essential Investment Partners LLC now owns 63 shares of the semiconductor manufacturer’s stock worth $39,000 after acquiring an additional 18 shares in the last quarter. Finally, CKW Financial Group boosted its holdings in shares of Advanced Micro Devices by 1.3% during the 3rd quarter. CKW Financial Group now owns 1,450 shares of the semiconductor manufacturer’s stock valued at $893,000 after acquiring an additional 18 shares in the last quarter. 71.34% of the stock is owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.