Advanced Micro Devices (NASDAQ:AMD) Stock Falls 1.5% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was down 1.5% during mid-day trading on Wednesday. The company traded as low as $608.08 and last traded at $614.61. 16,208,494 shares were traded during trading, a decline of 51% from the average session volume of 33,389,184 shares. The stock had previously closed at $623.77.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Bank of America raised its price target to $720 from $620 and maintained a Buy rating. The firm believes the rise of AI agents could expand the server CPU market to approximately $211 billion by 2030, creating a major opportunity for AMD’s EPYC processors. Bank of America raises AMD price target
• Positive Sentiment: AMD introduced new AI tools with Perplexity for Ryzen-powered PCs. The collaboration supports the company’s strategy of bringing AI workloads to local computers and helped reinforce investor enthusiasm for AMD’s consumer CPUs. AMD and Perplexity AI tools
• Positive Sentiment: Analysts and technical commentators see additional upside from AMD’s AI infrastructure portfolio. The MI450 and Helios platforms, EPYC CPUs and potential edge-AI demand are cited as catalysts, while a breakout above prior resistance has encouraged targets as high as $750. AMD AI-fueled breakout
• Neutral Sentiment: AMD’s trillion-dollar milestone is attracting significant investor and ETF attention. The milestone may broaden institutional demand and increase AMD’s representation in technology and semiconductor funds, although it also raises the performance bar. AMD ETFs and AI infrastructure
• Negative Sentiment: Valuation and execution risks remain the main counterweight. Critics argue AMD trades at demanding forward multiples after its rapid advance, while Nvidia continues to lead in scale, margins and deployed AI systems. Any delay in Helios or weaker AI spending could prompt profit-taking. AMD valuation warning

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on AMD. Raymond James Financial raised Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and increased their price objective for the company from $565.00 to $641.00 in a report on Tuesday, August 25th. DA Davidson lifted their target price on shares of Advanced Micro Devices from $425.00 to $550.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. UBS Group reiterated an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. KeyCorp set a $650.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Wedbush restated an “outperform” rating and issued a $600.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $567.62.

Advanced Micro Devices Trading Up 0.1%

The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The company has a fifty day moving average of $501.65 and a two-hundred day moving average of $428.43. The stock has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 161.87, a P/E/G ratio of 6.47 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. Advanced Micro Devices’s quarterly revenue was up 50.1% on a year-over-year basis. During the same period last year, the firm posted $0.48 EPS. On average, research analysts expect that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa Su sold 70,000 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at $1,536,696,660.80. This represents a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the firm’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares of the company’s stock, valued at approximately $595,245,602.07. The trade was a 2.23% 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. Over the last quarter, insiders sold 213,838 shares of company stock valued at $105,533,836. Insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Hedge funds have recently modified their holdings of the business. Norges Bank purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at about $4,929,312,000. Bank of America Corp DE acquired a new stake in shares of Advanced Micro Devices in the second quarter valued at approximately $7,022,226,000. Cardano Risk Management B.V. purchased a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $1,000,783,000. BlackRock Inc. raised its position in shares of Advanced Micro Devices by 3.1% during 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 last quarter. Finally, Franklin Resources Inc. raised its position in shares of Advanced Micro Devices by 340.1% during the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after purchasing an additional 3,669,054 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.