Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.1% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded down 1.1% on Tuesday . The stock traded as low as $213.13 and last traded at $213.57. 25,113,637 shares were traded during mid-day trading, a decline of 40% from the average session volume of 42,101,387 shares. The stock had previously closed at $216.00.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Reports say AMD will adopt LPDDR6 memory for upcoming Medusa Halo chips, a technical move that can improve power/price for AI and mobile inference customers and supports product competitiveness. AMD to adopt LPDDR6
• Positive Sentiment: Datacenter momentum: OVHcloud announced new Bare Metal servers powered by AMD processors, and several analysts (including Northland) remain upbeat on near‑term datacenter demand — evidence AMD’s server traction continues to expand. OVHcloud announces AMD-powered servers
• Positive Sentiment: Multiple bullish commentaries (Seeking Alpha, TipRanks, Zacks and Bank of America coverage referenced) argue AMD is a longer‑term AI compounder and may be undervalued relative to growth prospects — a vote of confidence from buy‑side and independent voices. De‑Risked AI Compounder
• Positive Sentiment: Industry tailwinds: reports of large Big Tech AI capex and tariff‑exemption moves for certain chips should buoy demand for datacenter GPUs/CPUs across major suppliers, including AMD. Tariff exemption benefits for chip stocks
• Neutral Sentiment: Management hire: AMD named Ariel Kelman as Senior VP & Chief Marketing Officer — a strategic marketing hire that could help commercial execution but is not a near‑term revenue driver. AMD hires Ariel Kelman
• Negative Sentiment: Post‑earnings sell‑off: shares dropped after Q4 because, despite strong revenue and EPS beats, AMD’s Q1 guidance was viewed as conservative and referenced seasonal weakness — the main immediate reason the stock is down. AMD plunges after Q4
• Negative Sentiment: Analyst concerns on margins/OPEX: Goldman and other coverage flagged operating‑expense pressure as AMD scales; higher opex guidance or slower margin expansion could keep near‑term multiples under pressure. Goldman flags OPEX pressure
• Negative Sentiment: Some sell calls (e.g., Forbes) argue valuation and recent run warrant caution — a reminder the stock’s high P/E makes it sensitive to short‑term guidance misses. Sell AMD at $215?

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on AMD shares. Wolfe Research set a $300.00 price target on Advanced Micro Devices and gave the stock an “outperform” rating in a research report on Tuesday, October 14th. Truist Financial set a $283.00 target price on Advanced Micro Devices in a report on Wednesday, February 4th. Raymond James Financial started coverage on Advanced Micro Devices in a research report on Thursday, November 20th. They issued an “outperform” rating and a $377.00 price target on the stock. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Advanced Micro Devices in a research report on Monday, February 2nd. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Advanced Micro Devices in a research note on Monday, February 2nd. Twenty-nine investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $290.11.

Advanced Micro Devices Trading Down 1.1%

The company has a quick ratio of 2.01, a current ratio of 2.85 and a debt-to-equity ratio of 0.04. The stock has a market cap of $348.21 billion, a P/E ratio of 80.59, a PEG ratio of 0.79 and a beta of 1.94. The business’s 50 day simple moving average is $221.85 and its two-hundred day simple moving average is $205.27.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.21. The company had revenue of $10.27 billion during the quarter, compared to the consensus estimate of $9.65 billion. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The firm’s revenue was up 34.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.09 earnings per share. As a group, analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Insider Buying and Selling

In other news, EVP Forrest Eugene Norrod sold 19,450 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $229.37, for a total value of $4,461,246.50. Following the transaction, the executive vice president owned 300,348 shares in the company, valued at approximately $68,890,820.76. The trade was a 6.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Mark D. Papermaster sold 17,108 shares of the stock in a transaction on Friday, November 14th. The stock was sold at an average price of $240.12, for a total transaction of $4,107,972.96. Following the sale, the executive vice president owned 1,714,505 shares of the company’s stock, valued at approximately $411,686,940.60. This trade represents a 0.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 164,000 shares of company stock worth $36,034,173. Corporate insiders own 0.06% of the company’s stock.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. HHM Wealth Advisors LLC boosted its stake in Advanced Micro Devices by 2.4% in the third quarter. HHM Wealth Advisors LLC now owns 1,742 shares of the semiconductor manufacturer’s stock worth $282,000 after purchasing an additional 40 shares in the last quarter. James J. Burns & Company LLC increased its stake in shares of Advanced Micro Devices by 2.3% in the fourth quarter. James J. Burns & Company LLC now owns 1,816 shares of the semiconductor manufacturer’s stock valued at $389,000 after buying an additional 40 shares in the last quarter. HBK Sorce Advisory LLC raised its holdings in shares of Advanced Micro Devices by 0.3% in the third quarter. HBK Sorce Advisory LLC now owns 13,404 shares of the semiconductor manufacturer’s stock valued at $2,169,000 after buying an additional 43 shares during the last quarter. Wilmington Savings Fund Society FSB raised its holdings in shares of Advanced Micro Devices by 0.5% in the third quarter. Wilmington Savings Fund Society FSB now owns 8,706 shares of the semiconductor manufacturer’s stock valued at $1,409,000 after buying an additional 43 shares during the last quarter. Finally, Cassaday & Co Wealth Management LLC lifted its position in Advanced Micro Devices by 0.9% during the 4th quarter. Cassaday & Co Wealth Management LLC now owns 4,912 shares of the semiconductor manufacturer’s stock worth $1,052,000 after buying an additional 43 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 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.