Advanced Micro Devices (NASDAQ:AMD) Stock Falls 6% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 6% on Friday. The stock traded as low as $526.83 and last traded at $528.75. Approximately 22,344,251 shares changed hands during trading, a decline of 31% from the average daily volume of 32,225,340 shares. The stock had previously closed at $562.23.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Arete raised its AMD price target to $612 from $540, while recent commentary highlighted the company’s expanding data-center business, AI accelerator opportunity and open Helion rack-scale architecture. Arete Adjusts Price Target on Advanced Micro Devices
• Positive Sentiment: AMD’s credit-support agreement for Fermi’s Texas data-center power lease is viewed as a potential AI infrastructure catalyst, although Fermi still faces liquidity and lease-related risks. AMD’s Support Could Help Fermi Stock
• Neutral Sentiment: ETF investors were net sellers of AMD on October 14, adding to short-term trading pressure but offering little insight into the company’s operating outlook. ETFs Are Net Sellers of AMD
• Negative Sentiment: A broad semiconductor selloff intensified after a Qualcomm jury verdict, with Arm, AMD and Taiwan Semiconductor declining together. Investors are questioning whether AI infrastructure spending can sustain current expectations, particularly as elevated interest rates pressure richly valued growth stocks. Arm and AMD Fall as Qualcomm Verdict Adds to Chip Selloff
• Negative Sentiment: Analysts and investors are also reassessing AMD’s elevated valuation, AI financing risks and the sustainability of extremely high data-center spending. Reports of widespread insider selling may further weigh on sentiment, even though institutional ownership remains substantial. AMD Slides as Chip Selloff Continues

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Roth Capital upped their price target on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. KeyCorp set a $650.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Citigroup lifted their target price on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $540.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Finally, Robert W. Baird set a $1,250.00 target price on shares of Advanced Micro Devices in a report on Friday, July 24th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices has an average rating of “Moderate Buy” and an average target price of $603.51.

Advanced Micro Devices Stock Performance

The firm’s 50-day moving average price is $537.02 and its 200-day moving average price is $472.22. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The stock has a market cap of $863.17 billion, a P/E ratio of 135.93, a PEG ratio of 5.46 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business’s quarterly revenue was up 50.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.48 EPS. Sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Forrest Norrod sold 17,261 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $503.05, for a total transaction of $8,683,146.05. Following the sale, the executive vice president owned 363,317 shares of the company’s stock, valued at $182,766,616.85. This represents a 4.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 dated 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 completion of the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their position. 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. Insiders sold a total of 213,838 shares of company stock valued at $105,533,836 in the last 90 days. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMD. BlackRock Inc. raised its holdings in shares of Advanced Micro Devices by 3.1% in the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after buying an additional 4,535,126 shares during the period. State Street Corp boosted its holdings in Advanced Micro Devices by 2.9% during the 2nd 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 period. Bank of America Corp DE purchased a new position in Advanced Micro Devices during the 2nd quarter valued at $7,022,226,000. Jennison Associates LLC boosted its holdings in Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock valued at $5,793,388,000 after acquiring an additional 545,575 shares during the period. Finally, Wellington Management Group LLP grew its position in Advanced Micro Devices by 33.9% in the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock valued at $5,422,444,000 after acquiring an additional 2,365,419 shares during the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.