Advanced Micro Devices (NASDAQ:AMD) Shares Down 3.3% - Here's Why

Key Points

• Advanced Micro Devices (AMD) shares fell by 3.3% to trade at approximately $230.23 after experiencing a significant increase in trading volume.
• Analysts have mixed ratings on AMD, with a consensus of "Moderate Buy" and an average price target of $233.94, after various firms updated their price targets significantly.
• AMD reported earnings of $0.48 per share for the last quarter, missing estimates by $0.06, despite having a revenue increase of 31.7% year-over-year.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) were down 3.3% during mid-day trading on Wednesday . The stock traded as low as $224.88 and last traded at $230.23. Approximately 58,536,521 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 49,682,527 shares. The stock had previously closed at $238.03.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on AMD shares. Cantor Fitzgerald reissued an "overweight" rating and issued a $200.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 6th. Piper Sandler reissued an "overweight" rating and issued a $240.00 price target on shares of Advanced Micro Devices in a report on Tuesday, October 7th. Bank of America upped their target price on shares of Advanced Micro Devices from $250.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday, October 17th. Jefferies Financial Group set a $300.00 target price on shares of Advanced Micro Devices and gave the stock a "positive" rating in a research note on Monday, October 6th. Finally, Barclays upped their target price on shares of Advanced Micro Devices from $200.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday, October 6th. Three research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $233.94.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $373.63 billion, a P/E ratio of 132.32, a PEG ratio of 2.20 and a beta of 1.90. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49. The company's fifty day simple moving average is $178.59 and its two-hundred day simple moving average is $143.81.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results 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). The company 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 firm's revenue was up 31.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.69 earnings per share. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Insider Activity at Advanced Micro Devices

In other news, SVP Ava Hahn sold 2,868 shares of the firm's stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $226.01, for a total transaction of $648,196.68. Following the transaction, the senior vice president directly owned 9,033 shares of the company's stock, valued at approximately $2,041,548.33. This trade represents a 24.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Lisa T. Su sold 225,000 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $163.97, for a total transaction of $36,893,250.00. Following the transaction, the chief executive officer directly owned 3,359,748 shares in the company, valued at $550,897,879.56. This represents a 6.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 274,118 shares of company stock valued at $46,180,719. 0.06% of the stock is currently owned by company insiders.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. MassMutual Private Wealth & Trust FSB grew its stake in shares of Advanced Micro Devices by 6.6% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 6,205 shares of the semiconductor manufacturer's stock worth $1,004,000 after buying an additional 384 shares during the last quarter. Cerity Partners LLC grew its stake in shares of Advanced Micro Devices by 0.4% during the third quarter. Cerity Partners LLC now owns 634,938 shares of the semiconductor manufacturer's stock worth $102,870,000 after buying an additional 2,656 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co grew its stake in shares of Advanced Micro Devices by 2.1% during the third quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 8,407 shares of the semiconductor manufacturer's stock worth $1,360,000 after buying an additional 175 shares during the last quarter. McIlrath & Eck LLC grew its stake in shares of Advanced Micro Devices by 28.8% during the third quarter. McIlrath & Eck LLC now owns 255 shares of the semiconductor manufacturer's stock worth $41,000 after buying an additional 57 shares during the last quarter. Finally, Gunderson Capital Management Inc. grew its stake in shares of Advanced Micro Devices by 18.7% during the third quarter. Gunderson Capital Management Inc. now owns 12,729 shares of the semiconductor manufacturer's stock worth $2,059,000 after buying an additional 2,003 shares during the last quarter. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Company Profile

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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