Advanced Micro Devices (NASDAQ:AMD) Shares Down 3.4% – What’s Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 3.4% during mid-day trading on Thursday . The stock traded as low as $502.81 and last traded at $503.60. Approximately 15,887,256 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 33,781,125 shares. The stock had previously closed at $521.09.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Piper Sandler initiated coverage with a Buy rating, while other analysts cited AMD’s potential gains in agentic AI, data-center CPUs and GPUs. Price targets reportedly reach $600 or higher. Piper Sandler AMD coverage
• Positive Sentiment: AMD’s CFO Jean Hu recently described a potential $2 trillion to $3 trillion AI opportunity by 2030 and expects the data-center business to expand substantially, helping drive recent optimism. AMD AI opportunity outlook
• Positive Sentiment: Strong demand indicators remain supportive: TSMC reported August revenue growth of 53.3% year over year, signaling robust orders for advanced chips, although the report also highlighted rising manufacturing and packaging costs for chip designers such as AMD. TSMC August revenue
• Positive Sentiment: AMD’s upcoming MI450 accelerator cycle and its partnership with Xanadu on the Backline quantum-computing platform add potential growth avenues beyond its existing CPU and data-center businesses. Xanadu and AMD Backline partnership
• Neutral Sentiment: ARK Invest’s Cathie Wood has been selling AMD while shifting capital toward Cerebras. The move may create short-term supply pressure, but it is an individual portfolio decision rather than a change in AMD’s fundamentals. Cathie Wood sells AMD
• Negative Sentiment: AMD is declining alongside Nvidia, Broadcom and other semiconductor stocks despite TSMC’s strong results, reflecting concerns about stretched AI valuations, elevated Treasury yields, rising oil prices and broader market risk.
• Negative Sentiment: Investors are also weighing execution risks, including limited advanced-packaging capacity, supply constraints and higher fabrication costs that could pressure margins or delay accelerator shipments.
• Negative Sentiment: At a premium valuation, AMD needs strong data-center growth and a successful MI450 ramp to justify expectations, leaving the stock vulnerable to profit-taking when near-term momentum fades.

Analysts Set New Price Targets

Several brokerages have recently issued reports on AMD. Piper Sandler initiated coverage on shares of Advanced Micro Devices in a research report on Wednesday. They set an “overweight” rating and a $600.00 price target on the stock. DA Davidson raised their price target on shares of Advanced Micro Devices from $425.00 to $550.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Wall Street Zen upgraded shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. TD Cowen reiterated a “buy” rating on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Finally, Benchmark boosted their target price on Advanced Micro Devices from $485.00 to $685.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Price Performance

The stock has a market capitalization of $822.11 billion, a price-to-earnings ratio of 129.46, a P/E/G ratio of 5.24 and a beta of 2.48. 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 stock has a fifty day moving average of $496.07 and a 200-day moving average of $400.91.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping 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 business 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 firm earned $0.48 EPS. The company’s revenue was up 50.1% compared to the same quarter last year. On average, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other news, SVP Ava Hahn sold 2,993 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the transaction, the senior vice president directly owned 26,623 shares in the company, valued at approximately $13,010,393.87. This trade represents a 10.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,261 shares of the company’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $459.95, for a total transaction of $7,939,196.95. Following the completion of the sale, the executive vice president owned 373,317 shares of the company’s stock, valued at approximately $171,707,154.15. This trade represents a 4.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 107,577 shares of company stock worth $51,922,920. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Rench Wealth Management Inc. acquired a new stake in shares of Advanced Micro Devices during the second quarter worth about $401,000. Bouchey Financial Group Ltd. raised its stake in Advanced Micro Devices by 5.7% during the 2nd quarter. Bouchey Financial Group Ltd. now owns 4,386 shares of the semiconductor manufacturer’s stock valued at $2,548,000 after acquiring an additional 238 shares during the last quarter. Miramontes Capital LLC acquired a new stake in Advanced Micro Devices during the 2nd quarter worth approximately $759,000. The Manufacturers Life Insurance Company lifted its position in Advanced Micro Devices by 41.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,967,717 shares of the semiconductor manufacturer’s stock worth $1,143,066,000 after acquiring an additional 576,856 shares during the period. Finally, Capstone Financial Advisors Inc. grew its stake in shares of Advanced Micro Devices by 53.8% in the 2nd quarter. Capstone Financial Advisors Inc. now owns 3,764 shares of the semiconductor manufacturer’s stock valued at $2,187,000 after purchasing an additional 1,317 shares during the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

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.