Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.6% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was down 1.6% during mid-day trading on Monday . The stock traded as low as $504.52 and last traded at $506.00. 19,808,884 shares changed hands during trading, a decline of 44% from the average daily volume of 35,564,742 shares. The stock had previously closed at $514.39.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD priced a record $4.75 billion senior-notes offering, with maturities extending from 2029 to 2036. The proceeds are intended to support artificial-intelligence and data-center expansion, suggesting management is positioning the company for continued demand growth. AMD Rises on $4.75 Billion Debt Offering
• Positive Sentiment: Reports point to record data-center revenue and growing momentum in server CPUs and AI accelerators. AMD’s most recent quarterly results also showed revenue growth of about 50% year over year and earnings above consensus estimates, reinforcing the long-term growth case. AMD Rides Record Data Center Revenue Despite Guidance Wobble
• Positive Sentiment: AMD is reportedly benefiting from potential collaboration with Alphabet’s Google involving custom TPU and AI infrastructure initiatives. Separately, Tiger Global’s reported shift from Nvidia and Alphabet into AMD has been viewed as a vote of confidence in AMD’s AI opportunity. AMD Stock Slips Despite Reports of a Google TPU Partnership
• Neutral Sentiment: Technical coverage describes AMD as consolidating near its 50-day moving average and forming a potentially bullish flag pattern. This supports further upside, but the setup remains dependent on a breakout and sustained AI demand. AMD Stock Forms a Rare Bullish Pattern
• Negative Sentiment: The debt sale is also weighing on sentiment because it increases financing obligations despite AMD holding roughly $13 billion in cash and investments. Investors may question why external funding is necessary and whether the AI expansion will generate adequate returns. AMD Just Borrowed $4.75 Billion
• Negative Sentiment: Valuation remains a major concern: AMD trades at a very high earnings multiple, leaving little room for slower growth, weaker guidance, or disappointing AI execution. Analysts also note that Nvidia’s data-center growth may still be faster, intensifying competitive pressure. One Major Red Flag AMD Investors Cannot Ignore

Wall Street Analyst Weigh In

AMD has been the subject of several recent research reports. Morgan Stanley boosted their price target on Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 5th. Raymond James Financial initiated coverage on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. They issued a “market perform” rating for the company. Wedbush reissued an “outperform” rating and issued a $600.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, August 5th. UBS Group restated an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. Finally, Mizuho raised their target price on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a report on Monday, July 27th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $546.87.

Advanced Micro Devices Stock Performance

The stock has a 50 day moving average of $511.77 and a 200 day moving average of $368.29. 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 firm has a market cap of $826.03 billion, a price-to-earnings ratio of 130.08 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the prior year, the company posted $0.48 earnings per share. The business’s revenue for the quarter was up 50.1% on a year-over-year basis. As a group, analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 6,000 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the transaction, the executive vice president directly owned 1,233,687 shares of the company’s stock, valued at $661,663,348.71. This trade represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the transaction, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This represents a 9.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 161,077 shares of company stock worth $74,732,145 in the last three months. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors have recently modified their holdings of AMD. Joseph Group Capital Management bought a new position in shares of Advanced Micro Devices in the fourth quarter worth about $25,000. Sarver Vrooman Wealth Advisors bought a new stake in shares of Advanced Micro Devices during the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC acquired a new position in Advanced Micro Devices during the 4th quarter worth approximately $27,000. Basepoint Wealth LLC acquired a new position in Advanced Micro Devices during the 4th quarter worth approximately $30,000. Finally, Graney & King LLC bought a new position in Advanced Micro Devices in the 1st quarter valued at approximately $31,000. 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.