Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.5% – Time to Sell?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) were down 1.5% during trading on Wednesday . The company traded as low as $608.08 and last traded at $614.61. Approximately 16,208,494 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 33,389,184 shares. The stock had previously closed at $623.77.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AI and data-center demand remain the primary bullish catalyst. AMD’s data-center revenue reportedly increased 107% year over year, while enthusiasm around agentic AI is strengthening expectations for demand for EPYC CPUs, Instinct accelerators, networking and rack-scale systems. CEO Lisa Su indicated that the demand wave for CPUs may still be in its early stages. CPUs Are Hot Again: AMD’s Lisa Su Says the Real Demand Wave Hasn’t Even Started
• Positive Sentiment: The $1 trillion milestone is reinforcing investor optimism. AMD’s market value crossed $1 trillion for the first time as investors responded to expanding AI infrastructure deployments, reported OpenAI and Oracle-related opportunities, and expectations that the company can continue gaining share from Nvidia. AMD Chips Away at NVIDIA’s AI Throne
• Neutral Sentiment: Analyst views remain divided. Some strategists see further upside and have highlighted targets near $740 or even $750, while other analysts argue that AMD’s rapid rerating has already priced in substantial future growth. Comparisons with Arm and Nvidia underscore the opportunity in inference and agentic AI, but also the competitive risks.
• Negative Sentiment: Profit-taking and macroeconomic conditions are weighing on the stock. After AMD’s roughly 187% year-to-date advance and its recent surge, some investors are locking in gains. Rising oil prices and Treasury yields also pressured technology shares broadly, while AMD’s very high earnings multiple increases its sensitivity to any disappointment in growth or execution. Why are Intel, AMD and Broadcom stocks down on Wednesday?

Wall Street Analysts Forecast Growth

AMD has been the topic of a number of research analyst reports. Wedbush reissued an “outperform” rating and issued a $600.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Robert W. Baird set a $1,250.00 price objective on Advanced Micro Devices in a report on Friday, July 24th. DA Davidson raised their price objective on Advanced Micro Devices from $425.00 to $550.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Argus boosted their target price on Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Price Performance

The stock has a market cap of $1.00 trillion, a P/E ratio of 158.00, a price-to-earnings-growth ratio of 6.38 and a beta of 2.48. The business’s 50 day moving average price is $497.38 and its two-hundred day moving average price is $422.43. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results 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. The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The firm’s quarterly revenue was up 50.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.48 EPS. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa Su sold 25,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the transaction, the chief executive officer owned 74,211 shares of the company’s stock, valued at $37,609,392.69. The trade was a 25.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares in the company, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 213,838 shares of company stock valued at $105,533,836. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in AMD. BlackRock Inc. raised its holdings in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after buying an additional 4,535,126 shares during the period. State Street Corp increased its position in Advanced Micro Devices by 2.9% during the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after acquiring an additional 2,149,563 shares during the last quarter. Geode Capital Management LLC increased its position in Advanced Micro Devices by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock valued at $8,015,897,000 after acquiring an additional 287,525 shares during the last quarter. Norges Bank purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at $4,929,312,000. Finally, Invesco Ltd. raised its stake in shares of Advanced Micro Devices by 15.9% in the fourth quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer’s stock valued at $3,313,758,000 after acquiring an additional 2,124,867 shares during the period. Institutional investors own 71.34% of the company’s stock.

About Advanced Micro Devices

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.