Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.3% - What's Next?

Key Points

• Advanced Micro Devices' shares dropped 1.3%, trading as low as $157.79, with a significant decline in volume at 14.6 million shares, down 68% from the average.
• Analyst ratings for AMD are mostly positive, with a current average rating of "Moderate Buy" and price targets ranging from $135.00 to $210.00.
• The company reported earnings of $0.48 per share for the last quarter, missing estimates, but had a revenue increase of 31.7% year-over-year, totaling $7.69 billion.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) dropped 1.3% during trading on Thursday . The company traded as low as $157.79 and last traded at $159.99. Approximately 14,651,918 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 46,406,949 shares. The stock had previously closed at $162.13.

Analyst Ratings Changes

AMD has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft set a $200.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 6th. Wedbush reaffirmed a "cautious" rating on shares of Advanced Micro Devices in a research report on Saturday, August 9th. Hsbc Global Res upgraded shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. Susquehanna boosted their price objective on shares of Advanced Micro Devices from $135.00 to $210.00 and gave the stock a "positive" rating in a research note on Wednesday, July 30th. Finally, Piper Sandler boosted their price objective on shares of Advanced Micro Devices from $140.00 to $190.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $181.33.

Advanced Micro Devices Price Performance

The stock has a market cap of $262.56 billion, a P/E ratio of 92.98, a price-to-earnings-growth ratio of 1.93 and a beta of 1.92. The company has a current ratio of 2.49, a quick ratio of 1.81 and a debt-to-equity ratio of 0.05. The company's fifty day simple moving average is $160.85 and its 200-day simple moving average is $124.95.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.06). The business had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company's quarterly revenue was up 31.7% compared to the same quarter last year. During the same period last year, the firm earned $0.69 EPS. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Advanced Micro Devices announced that its board has authorized a stock buyback program on Wednesday, May 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to buy up to 3.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board believes its shares are undervalued.

Insider Transactions at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total value of $1,732,100.00. Following the sale, the executive vice president owned 125,505 shares of the company's stock, valued at approximately $21,738,721.05. This represents a 7.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Mark D. Papermaster sold 17,998 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the completion of the sale, the executive vice president directly owned 1,713,710 shares in the company, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 252,998 shares of company stock valued at $41,415,580. 0.06% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AMD. Brighton Jones LLC lifted its position in Advanced Micro Devices by 178.2% during the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock valued at $5,551,000 after purchasing an additional 29,438 shares during the period. Revolve Wealth Partners LLC raised its position in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock valued at $1,001,000 after acquiring an additional 234 shares during the period. Bank Pictet & Cie Europe AG raised its position in shares of Advanced Micro Devices by 12.7% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock valued at $31,958,000 after acquiring an additional 29,825 shares during the period. Triumph Capital Management raised its position in shares of Advanced Micro Devices by 27.2% in the 4th quarter. Triumph Capital Management now owns 23,327 shares of the semiconductor manufacturer's stock valued at $2,818,000 after acquiring an additional 4,992 shares during the period. Finally, Captrust Financial Advisors raised its position in shares of Advanced Micro Devices by 3.4% in the 4th quarter. Captrust Financial Advisors now owns 78,273 shares of the semiconductor manufacturer's stock valued at $9,455,000 after acquiring an additional 2,592 shares during the period. 71.34% of the stock is currently owned by institutional investors and hedge funds.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.

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