Advanced Micro Devices (NASDAQ:AMD) Shares Down 3.1% - Should You Sell?

Key Points

• Shares down 3.1% intraday to $408.46 on above‑average volume, driven by profit‑taking after a sharp rally and some large fund redemptions.
• Strong quarter and analyst upgrades: AMD topped Q1 estimates (EPS $1.37 vs $1.29; revenue $10.25B, +37.8% Y/Y) and several firms raised targets (e.g., Benchmark $485, Stifel $450, Goldman to Buy), supporting the bullish case.
• Valuation and insider selling add caution: The stock trades at a high P/E (~133.9) and recent insider/institutional sales (including CEO Lisa Su) and downgrades increase near‑term downside risk despite strong fundamentals.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price dropped 3.1% on Thursday . The company traded as low as $401.08 and last traded at $408.46. Approximately 44,555,752 shares traded hands during trading, an increase of 13% from the average daily volume of 39,586,625 shares. The stock had previously closed at $421.39.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Blowout Q1 results and raised guidance — AMD’s Q1 beat (strong revenue, AI/data‑center strength) and bullish Q2 outlook remain the primary bullish drivers that sparked the recent rally. AMD Soars 14%: Q1 Crusher
• Positive Sentiment: Major analyst price‑target upgrades and buy reiterations — Several firms raised targets and upgraded coverage after the quarter, supporting upside expectations and sentiment in the near term. Analyst reaction / Goldman Sachs note
• Positive Sentiment: Supply/partner wins and ecosystem tailwinds — Reports cite TSMC capacity wins and customer partnerships (including an AMD enterprise AI deal mentioned alongside Rackspace), which reduce a key supply bottleneck and validate sustained data‑center demand. TSMC capacity win & earnings
• Neutral Sentiment: Corporate calendar item — AMD will hold its virtual Annual Meeting of Stockholders on May 13; management commentary there could influence near‑term expectations but is routine. Annual meeting notice
• Neutral Sentiment: Market/sector momentum — Nasdaq futures and chip ETFs rallied on AMD’s results, lifting the group; broader market moves (e.g., geopolitical headlines) are also contributing to intraday volatility. Nasdaq futures rally
• Negative Sentiment: Profit‑taking after a parabolic move — AMD ran into multi‑week and all‑time highs; some investors are locking gains after a rapid surge, which can push shares lower even with strong fundamentals. AI CPU thesis / profit‑taking note
• Negative Sentiment: Large redemptions and notable sellers — ARK and other high‑profile funds have trimmed AMD exposure (selling into the rally), amplifying downside pressure. ARK Invest shifts / AMD exit
• Negative Sentiment: Contrarian takes and downgrades raise short‑term uncertainty — A few analysts/commentators argue AMD is now richly valued versus peers (including a Seeking Alpha “time to sell” piece), which can feed headline‑driven selling even after strong results. AMD Has Flipped Nvidia: Time To Sell
• Negative Sentiment: Insider/institutional selling and valuation discussion — Reports of concentrated insider sales and some institutional repositioning (plus a high P/E after the rally) elevate caution for near‑term holders assessing risk vs. reward. Cathie Wood / ARK selling

Analyst Upgrades and Downgrades

AMD has been the subject of a number of research analyst reports. Benchmark boosted their price target on Advanced Micro Devices from $325.00 to $485.00 and gave the stock a "buy" rating in a report on Wednesday. Stifel Nicolaus boosted their price target on Advanced Micro Devices from $320.00 to $450.00 and gave the stock a "buy" rating in a report on Wednesday. The Goldman Sachs Group raised Advanced Micro Devices from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $240.00 to $450.00 in a report on Wednesday. Needham & Company LLC raised Advanced Micro Devices to a "buy" rating in a report on Wednesday. Finally, Jefferies Financial Group cut Advanced Micro Devices from a "buy" rating to a "hold" rating in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $388.84.

Advanced Micro Devices Trading Down 3.1%

The business has a fifty day simple moving average of $240.09 and a 200-day simple moving average of $230.52. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.01 and a current ratio of 2.85. The firm has a market cap of $665.93 billion, a price-to-earnings ratio of 133.92, a PEG ratio of 1.26 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.68% and a net margin of 13.37%.The business had revenue of $10.25 billion during the quarter, compared to analysts' expectations of $9.90 billion. During the same quarter in the prior year, the firm earned $0.96 EPS. The business's revenue for the quarter was up 37.8% compared to the same quarter last year. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 5.91 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 7,500 shares of the company's stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $204.87, for a total value of $1,536,525.00. Following the completion of the transaction, the executive vice president owned 129,598 shares of the company's stock, valued at $26,550,742.26. This represents a 5.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Lisa T. Su sold 125,000 shares of the company's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $214.36, for a total value of $26,795,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,152,476 shares of the company's stock, valued at approximately $675,764,755.36. The trade was a 3.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 304,672 shares of company stock worth $70,135,070 in the last 90 days. 0.50% of the stock is currently owned by company 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. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices in the 4th quarter valued at about $25,000. ORG Wealth Partners LLC grew its position in shares of Advanced Micro Devices by 39.7% in the 3rd quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 46 shares during the last quarter. Koesten Hirschmann & Crabtree INC. grew its position in shares of Advanced Micro Devices by 61.0% in the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors bought a new stake in shares of Advanced Micro Devices in the 4th quarter valued at about $27,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices in the 4th quarter valued at about $27,000. Institutional investors and hedge funds own 71.34% of the company's stock.

About Advanced Micro Devices

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.

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