Advanced Micro Devices (NASDAQ:AMD) Shares Down 10.9% – What’s Next?

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

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s data-center revenue reportedly nearly doubled, and its Helios rack-scale systems, EPYC processors and Instinct GPUs are being deployed in Meta’s AI infrastructure. The companies also expanded their relationship through a planned $1 billion equity investment and multigeneration chip collaboration. AMD Expands AI Footprint With Meta
• Positive Sentiment: Rackspace selected AMD-powered infrastructure for HGS’s private AI deployment, adding another enterprise use case for AMD’s data-center products. HGS Selects Rackspace Technology for Private AI Infrastructure
• Positive Sentiment: Rakuten Investment Management disclosed a new approximately $283.7 million AMD position, while many large institutions—including JPMorgan, Invesco, FMR and BlackRock—reported adding shares in recent quarters. Rakuten Opens AMD Position
• Positive Sentiment: Analyst targets remain broadly above the current share price, with a reported six-month median target of $512.50 and several targets ranging from $560 to $700.
• Neutral Sentiment: AMD is scheduled to report third-quarter results on Nov. 3. Investors will focus on data-center growth, AI accelerator demand, supply constraints and management’s outlook for 2027.
• Neutral Sentiment: Recent commentary highlights a sharply divided outlook: AMD’s AI growth is accelerating, but its valuation leaves little room for an earnings or guidance disappointment. AMD Earnings Preview
• Negative Sentiment: Intel’s disappointing fourth-quarter forecast, weak PC-market conditions and margin concerns triggered a broad semiconductor selloff. Investors are questioning whether AMD faces similar demand or supply pressures. AMD Shares Slide After Intel Earnings
• Negative Sentiment: Several reports argue AMD is priced more aggressively than NVIDIA despite slower expected growth, making the stock vulnerable to profit-taking before earnings. AMD Reports on Nov. 3
• Negative Sentiment: Insiders have reported 147 open-market sales and no purchases over the past six months, including substantial sales by CEO Lisa Su and other executives. Cathie Wood’s ARK Invest has also continued trimming AMD, adding to near-term sentiment pressure.

Analysts Set New Price Targets

AMD has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their price objective on Advanced Micro Devices from $385.00 to $550.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Wells Fargo & Company raised their target price on Advanced Micro Devices from $615.00 to $700.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Zacks Research cut Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 1st. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. Finally, Bank of America boosted their price target on shares of Advanced Micro Devices from $620.00 to $720.00 and gave the stock a “buy” rating in a research note on Friday, September 25th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and a consensus price target of $607.57.

Advanced Micro Devices Trading Down 10.9%

The company’s 50 day simple moving average is $548.29 and its 200 day simple moving average is $409.20. The firm has a market cap of $824.07 billion, a price-to-earnings ratio of 129.77, a P/E/G ratio of 5.18 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

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, topping analysts’ consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The company’s revenue was up 50.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.48 earnings per share. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares of the company’s stock, valued at $76,316,924.32. This trade represents a 8.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at $595,245,602.07. This represents 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. Insiders have sold 231,100 shares of company stock worth $114,867,400 over the last quarter. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Advanced Micro Devices

A number of large investors have recently made changes to their positions in AMD. DecisionPoint Financial LLC grew its holdings in shares of Advanced Micro Devices by 79.2% during the third quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 19 shares in the last quarter. MJT & Associates Financial Advisory Group Inc. acquired a new position in shares of Advanced Micro Devices in the third quarter valued at approximately $29,000. JNBA Financial Advisors raised its position in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after buying an additional 30 shares during the last quarter. Graney & King LLC purchased a new position in shares of Advanced Micro Devices during the first quarter valued at approximately $31,000. Finally, Main Street Group LTD purchased a new position in shares of Advanced Micro Devices during the first quarter valued at approximately $33,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

About Advanced Micro Devices

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.