Advanced Micro Devices (NASDAQ:AMD) Trading Down 5.2% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price fell 5.2% on Monday . The company traded as low as $476.93 and last traded at $494.95. Approximately 31,599,501 shares traded hands during trading, a decline of 13% from the average daily volume of 36,295,992 shares. The stock had previously closed at $521.95.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD’s partnership with Microsoft is being viewed as validation of its transition from selling individual chips to providing complete AI infrastructure systems. The company’s Helios rack-scale platform is positioned as a direct alternative to Nvidia’s integrated systems. AMD Microsoft partnership article
• Positive Sentiment: AMD and Cerebras announced a disaggregated inference architecture designed to improve AI efficiency and serve enterprise customers, including Microsoft Azure and Anthropic. The initiative supports AMD’s broader strategy of combining CPUs, accelerators and networking into full-platform solutions. AMD and Cerebras hardware article
• Positive Sentiment: Several reports argue that expanding hyperscaler AI infrastructure spending, growing inference demand and customer interest in a second supplier to Nvidia could allow AMD to exceed CEO Lisa Su’s long-term $100 billion revenue goal ahead of schedule. AMD revenue outlook article
• Positive Sentiment: Wedbush raised its AMD price target to $600 from $450 and maintained an Outperform rating ahead of earnings. Other analysts also remain constructive following AMD’s Advancing AI event. AMD analyst outlook article
• Neutral Sentiment: AMD is scheduled to report quarterly results next week. Investors are weighing strong prior growth and AI demand against elevated expectations; the stock’s valuation leaves limited room for disappointment.
• Negative Sentiment: The semiconductor sector is experiencing a broad selloff tied to concerns that AI infrastructure spending and chip demand may not justify current valuations. Rising GPU prices are also raising questions about demand sustainability. AMD semiconductor selloff article
• Negative Sentiment: Reports that China is advancing domestic DUV lithography and memory production are adding competitive and geopolitical pressure across chip stocks, including AMD. China semiconductor production article
• Negative Sentiment: Recent insider-trading data shows AMD executives have reported sales but no open-market purchases over the past six months, potentially reinforcing profit-taking concerns after the stock’s substantial rally.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Cantor Fitzgerald reissued an “overweight” rating and set a $700.00 price objective on shares of Advanced Micro Devices in a report on Friday. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $540.00 price target on shares of Advanced Micro Devices in a research report on Friday. BTIG Research raised Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Loop Capital upgraded Advanced Micro Devices to a “strong-buy” rating in a research note on Tuesday, June 16th. Finally, Stifel Nicolaus upped their price objective on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a “buy” rating in a report on Friday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $528.11.

Advanced Micro Devices Stock Performance

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 has a market capitalization of $807.07 billion, a PE ratio of 162.28 and a beta of 2.47. The company has a 50-day moving average price of $512.60 and a two-hundred day moving average price of $341.53.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter last year, the company earned $0.96 EPS. The firm’s revenue was up 37.8% compared to the same quarter last year. Analysts predict that Advanced Micro Devices, Inc. will post 6.27 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, Director Nora Denzel sold 8,626 shares of the stock in a transaction on 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 sale, the director owned 87,173 shares in the company, valued at approximately $45,504,306. This trade represents a 9.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the sale, the executive vice president directly owned 105,222 shares of the company’s stock, valued at $46,759,604.58. This represents a 18.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 310,310 shares of company stock worth $141,185,456 in the last ninety days. Insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of AMD. Joseph Group Capital Management bought a new position in shares of Advanced Micro Devices in the 4th quarter worth $25,000. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices in the fourth quarter worth $27,000. Cornerstone Financial Management LLC purchased a new position in Advanced Micro Devices in the fourth quarter worth $27,000. Basepoint Wealth LLC bought a new position in Advanced Micro Devices in the fourth quarter valued at $30,000. Finally, Graney & King LLC purchased a new stake in Advanced Micro Devices during the first quarter valued at about $31,000. Hedge funds and other institutional investors own 71.34% of the company’s stock.

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.