Advanced Micro Devices (NASDAQ:AMD) Trading Down 2.5% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price fell 2.5% during trading on Thursday . The stock traded as low as $203.33 and last traded at $204.68. 26,966,483 shares were traded during mid-day trading, a decline of 18% from the average session volume of 33,005,871 shares. The stock had previously closed at $210.02.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Long‑term upside thesis remains intact — The Motley Fool argues AMD’s recovery and AI exposure support multi‑year gains, reinforcing a growth narrative that can attract buy‑and‑hold investors. Where Will AMD Stock Be in 5 Years?
• Positive Sentiment: Third‑party partnerships and CES showcases boost AI credibility — A GlobeNewswire release highlights KunlunMeta’s partnership with AMD at CES, signaling customer interest in AMD accelerators for Chinese AI stacks. Partnerships like this underwrite revenue opportunities in data‑center inference. KunlunMeta Partners with AMD to Shine at CES
• Positive Sentiment: Analysts and market roundup highlight AMD as an AI leader — Weekly market reviews that call out Nvidia and AMD focus investor attention on AMD’s role in the AI infrastructure buildout, supporting demand expectations for MI‑series chips. Stock Market Rallies Broadly To Highs; Nvidia, AMD, Bloom Energy In Focus: Weekly Review
• Neutral Sentiment: CES generated broad AI/robotics headlines but mixed investor reaction — CNBC covered CES robot and AI demos that included AMD; media buzz raises profile but doesn’t guarantee immediate orders or margins. Humanoid robots take over CES in Las Vegas as tech industry touts future of AI
• Neutral Sentiment: Analyst/opinion pieces debate valuation after pullback — Several articles (Seeking Alpha, Yahoo Finance, Zacks) discuss whether a recent pullback leaves AMD attractively priced given a lofty P/E and high growth expectations; these pieces can support both buy and wait‑and‑see positions. AMD: Golden Buying Opportunity After Sentiment-Driven Selloff
• Negative Sentiment: Profit‑taking and sentiment‑driven selling after CES announcements — Coverage notes a short‑term slide as investors rotate out after a big 2025 run; some traders view the CES reveal as underwhelming versus lofty expectations. Why is AMD stock plunging sharply on Thursday?
• Negative Sentiment: Insider selling and noisy social sentiment add caution — Aggregated commentary and data show heavy insider sales and mixed social media reaction to the MI450/Helios launches, which can amplify short‑term downside risk even if fundamentals remain strong. Advanced Micro Devices Stock (AMD) Opinions on CES 2026 Announcements
• Negative Sentiment: Debate on whether MI‑series hype is priced in — Critical pieces ask if MI450/Helios announcements represent a true breakout or mostly hype, raising execution and competitive risk concerns that could pressure the stock if adoption timelines slip. Advanced Micro Devices: AI Breakout Or Just Hype Around MI450 And Helios?

Analysts Set New Price Targets

A number of research firms have recently issued reports on AMD. Truist Financial reduced their target price on Advanced Micro Devices from $279.00 to $277.00 and set a “buy” rating for the company in a report on Friday, December 19th. JPMorgan Chase & Co. increased their price objective on Advanced Micro Devices from $180.00 to $270.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 5th. Citigroup raised their price objective on Advanced Micro Devices from $215.00 to $260.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 5th. Barclays reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a research note on Wednesday, November 12th. Finally, Rosenblatt Securities restated a “buy” rating and set a $300.00 price target on shares of Advanced Micro Devices in a report on Wednesday, November 12th. Three research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $277.06.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.31 and a quick ratio of 1.68. The stock has a market capitalization of $330.77 billion, a price-to-earnings ratio of 100.58, a PEG ratio of 0.87 and a beta of 1.95. The stock’s 50 day simple moving average is $221.33 and its 200-day simple moving average is $191.90.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, November 4th. The semiconductor manufacturer reported $1.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. The firm had revenue of $9.25 billion during the quarter, compared to analysts’ expectations of $8.76 billion. Advanced Micro Devices had a net margin of 10.32% and a return on equity of 8.04%. Advanced Micro Devices’s revenue for the quarter was up 35.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.92 earnings per share. On average, analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

Insider Activity

In other news, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction 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 completion of the sale, the chief executive officer directly owned 3,277,476 shares in the company, valued at approximately $705,116,186.64. The trade was a 3.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Forrest Eugene Norrod sold 19,450 shares of Advanced Micro Devices stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $229.37, for a total transaction of $4,461,246.50. Following the completion of the transaction, the executive vice president owned 300,348 shares in the company, valued at $68,890,820.76. This trade represents a 6.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 178,358 shares of company stock valued at $39,229,623 over the last 90 days. 0.06% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMD. First Heartland Consultants Inc. grew its holdings in shares of Advanced Micro Devices by 3.7% during the 4th quarter. First Heartland Consultants Inc. now owns 4,015 shares of the semiconductor manufacturer’s stock worth $860,000 after purchasing an additional 145 shares in the last quarter. Clear Trail Advisors LLC bought a new position in Advanced Micro Devices in the fourth quarter worth $935,000. Assenagon Asset Management S.A. boosted its stake in Advanced Micro Devices by 104.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 5,991,297 shares of the semiconductor manufacturer’s stock worth $1,283,096,000 after buying an additional 3,059,935 shares in the last quarter. Diversified Trust Co. increased its holdings in Advanced Micro Devices by 2.7% in the 4th quarter. Diversified Trust Co. now owns 22,822 shares of the semiconductor manufacturer’s stock valued at $4,888,000 after buying an additional 593 shares during the period. Finally, Westview Management dba Westview Investment Advisors acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at $2,384,000. 71.34% of the stock is currently owned by institutional investors.

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.