Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.1% - What's Next?

Key Points

• Advanced Micro Devices (AMD) shares fell by 3.1% during mid-day trading, with a significant drop from the previous close of $166.55 to $161.32.
• Analysts have mixed views on AMD, with recent changes in target prices; Evercore ISI raised its target to $188.00, while Morgan Stanley lowered it to $168.00, indicating a "Moderate Buy" consensus rating.
• AMD reported quarterly earnings of $0.48 per share, which fell short of estimates, despite a year-over-year revenue increase of 31.7%, leading to a reassessment of its stock value amid ongoing buyback initiatives.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) traded down 3.1% during trading on Wednesday . The stock traded as low as $158.25 and last traded at $161.32. 25,606,945 shares changed hands during trading, a decline of 45% from the average session volume of 46,789,695 shares. The stock had previously closed at $166.55.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Susquehanna lifted their target price on Advanced Micro Devices from $135.00 to $210.00 and gave the stock a "positive" rating in a research note on Wednesday, July 30th. Erste Group Bank upgraded Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Wednesday, July 23rd. HSBC upgraded Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $200.00 target price for the company in a research report on Thursday, July 10th. UBS Group upped their target price on Advanced Micro Devices from $150.00 to $210.00 and gave the company a "buy" rating in a research report on Monday, July 28th. Finally, Barclays upped their target price on Advanced Micro Devices from $130.00 to $200.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $180.12.

Advanced Micro Devices Trading Up 2.5%

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 firm has a market capitalization of $272.25 billion, a P/E ratio of 96.41, a P/E/G ratio of 1.98 and a beta of 1.94. The firm has a 50-day moving average of $155.48 and a two-hundred day moving average of $122.07.

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

Advanced Micro Devices declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the semiconductor manufacturer to reacquire up to 3.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, 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 value of $2,790,229.94. Following the completion of the transaction, the executive vice president owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. This represents a 1.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $173.21, for a total value of $1,732,100.00. Following the completion of the transaction, the executive vice president directly owned 125,505 shares of the company's stock, valued at approximately $21,738,721.05. The trade was a 7.38% decrease in their position. The disclosure for this sale can be found here. 0.06% 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 bought and sold shares of the company. Cornerstone Advisory LLC increased its holdings in Advanced Micro Devices by 1.4% in the 2nd quarter. Cornerstone Advisory LLC now owns 4,271 shares of the semiconductor manufacturer's stock worth $606,000 after purchasing an additional 57 shares in the last quarter. King Wealth Management Group increased its stake in shares of Advanced Micro Devices by 2.1% in the second quarter. King Wealth Management Group now owns 3,017 shares of the semiconductor manufacturer's stock valued at $428,000 after buying an additional 62 shares during the period. Synergy Financial Group LTD increased its stake in shares of Advanced Micro Devices by 2.0% in the second quarter. Synergy Financial Group LTD now owns 3,309 shares of the semiconductor manufacturer's stock valued at $470,000 after buying an additional 64 shares during the period. Tortoise Investment Management LLC increased its stake in shares of Advanced Micro Devices by 14.8% in the second quarter. Tortoise Investment Management LLC now owns 503 shares of the semiconductor manufacturer's stock valued at $71,000 after buying an additional 65 shares during the period. Finally, Tritonpoint Wealth LLC increased its stake in shares of Advanced Micro Devices by 2.6% in the second quarter. Tritonpoint Wealth LLC now owns 2,857 shares of the semiconductor manufacturer's stock valued at $405,000 after buying an additional 72 shares during the period. Institutional investors and hedge funds own 71.34% of the company's stock.

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.