Advanced Micro Devices (NASDAQ:AMD) Trading Down 6.5% – Here’s What Happened

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) dropped 6.5% during trading on Tuesday . The company traded as low as $503.11 and last traded at $516.11. Approximately 28,776,163 shares were traded during mid-day trading, a decline of 23% from the average daily volume of 37,410,785 shares. The stock had previously closed at $552.05.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD landed Japanese autonomous-driving startup Turing as a new customer, and Turing said it has started using AMD AI accelerators in its autonomous vehicle systems. The deal expands AMD’s reach beyond data centers and gaming into self-driving AI. AMD Just Scored a New Autonomous Driving Customer. It’s Aiming at Nvidia in Another Arena.
• Positive Sentiment: Wall Street sentiment remains constructive, with Goldman Sachs, Wells Fargo, and other firms reiterating bullish views and lifting price targets on expectations for strong server CPU demand and continued AI growth. AMD Stock Soars as Goldman Raises Price Target on ‘Strong Server CPU Demand’
• Positive Sentiment: AMD’s Ryzen AI push is being framed as a growing “agentic AI” opportunity, with demand for high-performance CPUs in AI PCs and servers supporting a longer-term upside narrative. AMD Ryzen Strengthens Agentic AI Footprint: More Upside Ahead?
• Positive Sentiment: Recent commentary continues to highlight AMD’s strong fundamentals, including rapid revenue growth and a booming data center business, which supports the stock’s longer-term AI re-rating story. 1 Prediction for AMD Stock Over the Next 5 Years
• Neutral Sentiment: Some index and benchmark reshuffling is changing how investors classify AMD, but it is more of a technical portfolio-flow issue than a direct business catalyst. Advanced Micro Devices (AMD) Wins Fresh Analyst Backing, Is The Upside Already Priced In?
• Negative Sentiment: AMD is being hit by a broad semiconductor selloff as investors take profits in AI chip leaders, with the entire group pressured by fears that valuations have run ahead of near-term earnings. AMD sinks as semiconductor selloff and AI valuation worries pressure the stock
• Negative Sentiment: Market chatter also points to lingering caution around the AI trade, with traders waiting for the next product and customer catalyst before bidding the stock higher again.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AMD. Evercore restated an “outperform” rating and issued a $579.00 target price on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. UBS Group lifted their price objective on shares of Advanced Micro Devices from $455.00 to $670.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Jefferies Financial Group cut Advanced Micro Devices from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. Barclays lowered Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research note on Friday, June 12th. Finally, Benchmark upped their price objective on Advanced Micro Devices from $325.00 to $485.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $453.92.

Advanced Micro Devices Stock Performance

The company has a fifty day moving average price of $470.75 and a two-hundred day moving average price of $308.01. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company has a market capitalization of $841.57 billion, a P/E ratio of 169.22, a PEG ratio of 1.53 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. During the same period in the previous year, the business earned $0.96 EPS. The business’s quarterly revenue was up 37.8% compared to the same quarter last year. Equities analysts forecast that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the transaction, the executive vice president directly owned 324,527 shares of the company’s stock, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 374,739 shares of company stock valued at $161,135,671. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

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