Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 8.1% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 8.1% during mid-day trading on Friday. The stock traded as low as $546.80 and last traded at $537.92. 7,476,006 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 32,257,818 shares. The stock had previously closed at $585.30.

Recent Advanced Micro Devices Headlines

These are some of the AMD headlines that stood out recently:

• Positive Sentiment: Analysts see a potential opening for AMD as Nvidia faces leadership turmoil and customers consider alternative suppliers. William Blair reiterated its bullish stance, while Bank of America recently raised its price target to $700; AMD’s expanding AI product lineup and strong data-center growth add to the positive case. Article: Nvidia Shares Are Bleeding Red as Jensen Huang Resigns, But Analysts See Huge Runway for Rival AMD’s Stock
• Neutral Sentiment: The Nvidia upheaval has helped direct investor attention toward AMD, but the rotation may be uneven: AMD and other rivals reportedly gave back some gains as Nvidia shares rebounded in premarket trading. Article: AMD, Broadcom stocks fall 2% as Nvidia rebounds
• Negative Sentiment: Risks include AMD’s swelling inventory and limited track record shipping large-scale AI systems, which could make it difficult to convert customer interest into sales. Proposed broader export controls and compliance requirements could also hamper international deployments across the chip industry. Article: AMD’s Path to $700 Just Got Much Easier as Enterprise and Hyperscaler Diversification Tailwinds Rise

Analyst Ratings Changes

A number of research analysts have commented on AMD shares. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $649.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Sanford C. Bernstein cut shares of Advanced Micro Devices from an “outperform” rating to a “market perform” rating in a research report on Thursday. Truist Financial boosted their price target on shares of Advanced Micro Devices from $594.00 to $605.00 and gave the company a “buy” rating in a research note on Wednesday, November 4th. Wolfe Research restated an “outperform” rating and issued a $650.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, November 4th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $540.00 price objective on shares of Advanced Micro Devices in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, thirty have given 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 company presently has a consensus rating of “Moderate Buy” and a consensus price target of $640.11.

Advanced Micro Devices Stock Down 10.6%

The company has a market capitalization of $858.66 billion, a PE ratio of 113.81, a PEG ratio of 5.32 and a beta of 2.49. The company has a current ratio of 2.72, a quick ratio of 1.93 and a debt-to-equity ratio of 0.10. The business has a fifty day moving average of $552.99 and a 200 day moving average of $420.72.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The company had revenue of $13.38 billion for the quarter, compared to analyst estimates of $13.10 billion. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. The business’s revenue for the quarter was up 44.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.20 earnings per share. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.93 EPS for the current year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Mark Papermaster sold 28,811 shares of the company’s stock in a transaction that occurred 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 sale, the executive vice president directly owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares in the company, valued at approximately $76,316,924.32. This trade represents a 8.52% decrease in their ownership of the stock. 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. In the last ninety days, insiders have sold 223,588 shares of company stock valued at $111,208,302. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds have recently modified their holdings of the stock. DecisionPoint Financial LLC increased its holdings in Advanced Micro Devices by 79.2% during the 3rd quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. purchased a new position in shares of Advanced Micro Devices in the 3rd quarter valued at about $29,000. JNBA Financial Advisors grew its position in shares of Advanced Micro Devices by 142.9% during the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after buying an additional 30 shares in the last quarter. Graney & King LLC acquired a new position in shares of Advanced Micro Devices during the first quarter worth about $31,000. Finally, Main Street Group LTD purchased a new stake in shares of Advanced Micro Devices during the first quarter worth approximately $33,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.