Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 17.3% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 17.3% during trading on Thursday. The stock traded as low as $402.10 and last traded at $404.40. 69,839,769 shares changed hands during trading, an increase of 119% from the average session volume of 31,918,953 shares. The stock had previously closed at $488.78.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD reported record quarterly revenue of $13.38 billion, up 44.7% year over year, and earnings per share of $2.09, beating analyst estimates. Data-center revenue nearly doubled, helped by demand for AI chips. Stock Market Today, Nov. 6: AMD Surges on Record Quarterly Revenue and Stronger Growth Outlook
• Positive Sentiment: Management signaled faster growth ahead, forecasting revenue to rise more than 80% in 2027 and describing AMD’s AI business as poised for further expansion. CEO Lisa Su said the company has good visibility into data-center capacity needs through 2027. Lisa Su Sees AMD’s AI Data Center Business More Than Doubling in 2027
• Positive Sentiment: AMD’s rebound also came as investors bought semiconductor shares after Thursday’s sector-wide rout, suggesting some buyers viewed the selloff as an opportunity. Su pushed back on concerns about AI spending, calling the market’s reaction short-sighted. Chip Stocks Rebound, but Is the AI Selloff Over?
• Negative Sentiment: Some analysts warn that AMD’s premium valuation leaves the stock vulnerable if growth expectations or broader enthusiasm for AI weaken. A recent downgrade cited competition from Nvidia and Arm, as well as potential multiple compression. AMD: This Selloff Isn’t Enough
• Negative Sentiment: Despite the rebound, investors remain concerned about AI-chip valuations, heavy data-center spending, possible regulation and the durability of customer returns. These sector pressures could keep AMD shares volatile. AI Stocks Hit by Midterm Shock and Data-Center Spending Concerns

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on AMD shares. JPMorgan Chase & Co. increased their price objective on shares of Advanced Micro Devices from $550.00 to $575.00 and gave the stock a “neutral” rating in a research note on Wednesday. Zacks Research lowered shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 1st. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $700.00 target price on shares of Advanced Micro Devices in a report on Wednesday. CLSA reiterated an “outperform” rating and issued a $710.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, September 9th. Finally, Truist Financial lifted their price target on shares of Advanced Micro Devices from $594.00 to $605.00 and gave the stock a “buy” rating in a research note on Wednesday. Three analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $643.69.

Advanced Micro Devices Trading Up 11.0%

The stock has a 50-day moving average price of $546.81 and a two-hundred day moving average price of $414.98. The stock has a market capitalization of $733.04 billion, a PE ratio of 97.62, a PEG ratio of 4.79 and a beta of 2.49. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.14. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company had revenue of $13.38 billion during the quarter, compared to analyst estimates of $13.10 billion. During the same period in the prior year, the firm posted $1.20 EPS. The firm’s quarterly revenue was up 44.7% compared to the same quarter last year. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.57 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In other news, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares in the company, valued at $76,316,924.32. This trade represents a 8.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their position. 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 quarter, insiders sold 231,100 shares of company stock valued at $114,867,400. Company 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 bought and sold shares of AMD. First Citizens Financial Corp raised its position in shares of Advanced Micro Devices by 3.4% during the third quarter. First Citizens Financial Corp now owns 490 shares of the semiconductor manufacturer’s stock valued at $300,000 after buying an additional 16 shares during the last quarter. Fearless Solutions LLC dba Best Invest boosted its position in shares of Advanced Micro Devices by 1.5% during the third quarter. Fearless Solutions LLC dba Best Invest now owns 1,174 shares of the semiconductor manufacturer’s stock worth $718,000 after acquiring an additional 17 shares during the last quarter. Private Client Services LLC boosted its position in shares of Advanced Micro Devices by 1.7% during the third quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock worth $660,000 after acquiring an additional 18 shares during the last quarter. Essential Investment Partners LLC grew its stake in Advanced Micro Devices by 40.0% during the third quarter. Essential Investment Partners LLC now owns 63 shares of the semiconductor manufacturer’s stock valued at $39,000 after acquiring an additional 18 shares in the last quarter. Finally, CKW Financial Group grew its stake in Advanced Micro Devices by 1.3% during the third quarter. CKW Financial Group now owns 1,450 shares of the semiconductor manufacturer’s stock valued at $893,000 after acquiring an additional 18 shares in the last quarter. 71.34% of the stock is owned by institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors.

The company’s product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.