Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 2.4% – Here’s Why

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 2.4% on Tuesday . The stock traded as low as $452.30 and last traded at $459.61. 16,044,925 shares traded hands during trading, a decline of 53% from the average daily volume of 34,318,777 shares. The stock had previously closed at $470.72.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Saudi Arabia deployment validates AMD’s AI strategy. AMD, Cisco and HUMAIN said AMD Instinct MI355X-based AI infrastructure is now live and serving customers in Saudi Arabia. The partners plan to add up to 250 megawatts beginning in 2027, with an eventual target of as much as 1 gigawatt by 2030. The announcement provides evidence of real-world demand for AMD’s data-center GPUs, although the financial impact will develop over time. AMD’s Instinct Systems Are Now Live in Saudi Arabia
• Positive Sentiment: Third-party software progress could narrow Nvidia’s advantage. AI-inference startup Wafer reportedly raised $40 million after optimizing AMD-based systems to reach up to 80% of Nvidia’s performance at half the cost. If broadly replicated, improvements in software efficiency could make AMD hardware more attractive to cost-conscious AI customers. Wafer AI inference optimization
• Neutral Sentiment: AMD’s long-term AI opportunity remains significant, but expectations are elevated. Commentary highlights that AMD has already delivered substantial gains in 2026 and that CEO Lisa Su believes AI infrastructure spending is still in its early stages. However, comparisons with Alphabet and Broadcom emphasize that AMD’s valuation leaves less room for execution mistakes. Prediction: This Stock Could Be the Next Big AI Winner
• Negative Sentiment: Nvidia is reinforcing its competitive moat. Nvidia’s planned investment in MediaTek and renewed focus on specialized inference chips could strengthen its edge-to-cloud ecosystem, potentially limiting AMD’s share gains in AI infrastructure. NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat
• Negative Sentiment: Macro pressure and portfolio selling are weighing on sentiment. Higher Treasury yields are pressuring expensive growth stocks, while ARK Invest reportedly sold roughly $74 million of AMD shares and shifted capital toward Nvidia and Broadcom. Investors are also monitoring potential U.S. semiconductor tariffs and tighter export controls, which could raise supply-chain costs or restrict addressable markets. ARK Invest Exits AMD Position

Wall Street Analysts Forecast Growth

AMD has been the topic of several research analyst reports. UBS Group reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. JPMorgan Chase & Co. increased their target price on Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. DA Davidson lifted their target price on Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Cantor Fitzgerald reissued an “overweight” rating and set a $700.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, William Blair restated a “market perform” rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $553.72.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The stock has a 50 day moving average of $504.05 and a 200 day moving average of $387.43. The stock has a market capitalization of $750.30 billion, a P/E ratio of 118.15 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the company posted $0.48 earnings per share. The company’s revenue for the quarter was up 50.1% compared to the same quarter last year. Equities analysts predict that Advanced Micro Devices, Inc. will post 6.44 EPS for the current year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 28,811 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer directly owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This trade represents a 4.14% 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 have sold 232,577 shares of company stock worth $109,509,170 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several large investors have recently bought and sold shares of the stock. California State Teachers Retirement System boosted its stake in Advanced Micro Devices by 58,272.0% during the 2nd quarter. California State Teachers Retirement System now owns 1,436,775,740 shares of the semiconductor manufacturer’s stock valued at $834,637,395,000 after purchasing an additional 1,434,314,328 shares in the last quarter. Norges Bank bought a new position in Advanced Micro Devices during the fourth quarter valued at about $4,929,312,000. Bank of America Corp DE acquired a new position in Advanced Micro Devices during the second quarter worth about $7,022,226,000. Cardano Risk Management B.V. bought a new stake in Advanced Micro Devices in the fourth quarter worth about $1,000,783,000. Finally, BlackRock Inc. lifted its holdings 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 valued at $87,311,650,000 after acquiring an additional 4,535,126 shares during the last quarter. Institutional investors and hedge funds own 71.34% of the company’s stock.

About Advanced Micro Devices

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.