Advanced Micro Devices (NASDAQ:AMD) Shares Gap Down – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $552.05, but opened at $515.91. Advanced Micro Devices shares last traded at $513.8520, with a volume of 4,789,482 shares.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Wall Street analysts remain constructive on AMD, with Goldman Sachs and Wells Fargo recently raising price targets on expectations for strong server CPU demand, pricing power, and continued AI-related growth. AMD, Nvidia, Micron, Oracle, Dell, Intel, and More Stocks That Explain Today’s Market
• Positive Sentiment: AMD also gained a new AI-use-case catalyst after Turing said it is adopting AMD GPUs for part of its self-driving AI training, which expands AMD beyond data centers and gaming into autonomous vehicles. AMD Gains AI Customer as $600 Million Self-Driving Startup Adopts Its GPUs
• Neutral Sentiment: Recent articles also highlighted AMD’s rapid share-price gains and its approach toward a possible $1 trillion valuation, but these pieces were mostly commentary on momentum rather than new fundamental news. AMD Is 11% Away From Joining the $1 Trillion Club. Could It Get There This Year?
• Negative Sentiment: The main drag today is a broader chip-stock selloff, with AMD falling alongside peers like Nvidia and Intel as investors worry the AI rally is stalling and trading sentiment in semiconductors turns risk-off. Intel and Applied Materials Dive 10%, AMD Craters 8% as Samsung Earnings Trigger Chip Selloff
• Negative Sentiment: Cathie Wood’s ARK Invest sold about $8 million of AMD shares, adding to some near-term caution even as analyst sentiment remains upbeat. AMD Stock: Cathie Wood Sells $8M in AMD Despite Growing Analyst Optimism

Wall Street Analysts Forecast Growth

AMD has been the subject of several analyst reports. Melius Research set a $540.00 price target on shares of Advanced Micro Devices in a report on Monday, May 18th. Oppenheimer lowered shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a research note on Wednesday, May 6th. Seaport Research Partners upgraded shares of Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 price objective for the company in a research report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their target price on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, Loop Capital upgraded shares of Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $453.92.

Advanced Micro Devices Stock Down 6.7%

The company has a market cap of $839.47 billion, a price-to-earnings ratio of 168.62, a P/E/G ratio of 1.53 and a beta of 2.47. The stock’s 50-day moving average is $470.75 and its 200-day moving average is $308.01. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same period last year, the company posted $0.96 earnings per share. The business’s quarterly revenue was up 37.8% on a year-over-year basis. On average, analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the transaction, the director owned 87,173 shares in the company, valued at approximately $45,504,306. This represents a 9.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer directly owned 2,896,899 shares of the company’s stock, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 374,739 shares of company stock worth $161,135,671 over the last 90 days. 0.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Advanced Micro Devices by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock valued at $33,949,256,000 after buying an additional 2,525,109 shares in the last quarter. State Street Corp grew its holdings in shares of Advanced Micro Devices by 1.5% during the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock valued at $16,044,712,000 after buying an additional 1,094,835 shares during the last quarter. Geode Capital Management LLC increased its position in shares of 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 worth $8,015,897,000 after acquiring an additional 287,525 shares in the last quarter. Norges Bank acquired a new stake in shares of Advanced Micro Devices in the 4th quarter worth about $4,929,312,000. Finally, Price T Rowe Associates Inc. MD raised its holdings in shares of Advanced Micro Devices by 0.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock worth $4,352,864,000 after acquiring an additional 55,969 shares during the last quarter. 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.