Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.1% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) dropped 1.1% on Tuesday . The company traded as low as $213.13 and last traded at $213.57. Approximately 25,113,637 shares traded hands during mid-day trading, a decline of 40% from the average daily 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 Analyst Weigh In

Several equities research analysts have recently commented on the company. Citigroup reissued a “neutral” rating on shares of Advanced Micro Devices in a research note on Thursday, January 15th. Stifel Nicolaus lifted their price objective on Advanced Micro Devices from $240.00 to $280.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Loop Capital set a $290.00 target price on shares of Advanced Micro Devices and gave the company a “buy” rating in a research report on Wednesday, November 5th. Morgan Stanley reduced their target price on shares of Advanced Micro Devices from $260.00 to $255.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 4th. Finally, CICC Research upgraded shares of Advanced Micro Devices from a “market perform” rating to an “outperform” rating and set a $265.00 target price for the company in a research report on Friday, November 7th. Twenty-nine equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $290.11.

Advanced Micro Devices Trading Down 1.1%

The business has a 50 day simple moving average of $221.85 and a 200-day simple moving average of $205.27. The stock has a market capitalization of $348.21 billion, a price-to-earnings ratio of 80.59, a PEG ratio of 0.79 and a beta of 1.94. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.85 and a quick ratio of 2.01.

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

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,108 shares of the stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $240.12, for a total transaction of $4,107,972.96. Following the completion of the transaction, the executive vice president directly owned 1,714,505 shares in the company, valued at $411,686,940.60. This represents a 0.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $215.14, for a total value of $26,892,500.00. Following the transaction, the chief executive officer directly owned 3,277,476 shares of the company’s stock, valued at $705,116,186.64. This trade represents a 3.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 164,000 shares of company stock valued at $36,034,173 over the last quarter. 0.06% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

A number of large investors have recently added to or reduced their stakes in the company. Joseph Group Capital Management bought a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $25,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $30,000. Koesten Hirschmann & Crabtree INC. lifted its holdings in Advanced Micro Devices by 61.0% during the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 61 shares during the last quarter. ORG Wealth Partners LLC lifted its holdings in Advanced Micro Devices by 39.7% during the 3rd quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 46 shares during the last quarter. Finally, Key Capital Management INC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at $38,000. 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.