Advanced Micro Devices (NASDAQ:AMD) Shares Down 4.2% - Should You Sell?

Key Points

• Advanced Micro Devices (AMD) shares fell by 4.2%, closing at $168.66 after earlier trading as low as $167.19, with volume declining by 42% from its average.
• Analyst ratings reflect a consensus of Moderate Buy with an average price target of $180.12, as several firms have adjusted their ratings and price targets recently.
• AMD recently reported $0.48 EPS, missing estimates, but showed a revenue increase of 31.7% year-over-year, reaching $7.69 billion for the quarter.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price fell 4.2% during trading on Tuesday . The company traded as low as $167.19 and last traded at $168.66. 27,080,102 shares were traded during trading, a decline of 42% from the average session volume of 46,666,477 shares. The stock had previously closed at $176.14.

Wall Street Analyst Weigh In

A number of brokerages recently commented on AMD. Deutsche Bank Aktiengesellschaft set a $200.00 price objective on Advanced Micro Devices in a research note on Wednesday, August 6th. Loop Capital decreased their price objective on Advanced Micro Devices from $175.00 to $140.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Stifel Nicolaus lifted their price objective on Advanced Micro Devices from $161.00 to $190.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. JPMorgan Chase & Co. lifted their price objective on Advanced Micro Devices from $120.00 to $180.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 6th. Finally, Evercore ISI lifted their price objective on Advanced Micro Devices from $144.00 to $188.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 6th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $180.12.

Advanced Micro Devices Price Performance

The firm has a market cap of $272.25 billion, a price-to-earnings ratio of 96.41, a P/E/G ratio of 1.94 and a beta of 1.94. 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 has a 50 day moving average of $155.48 and a 200 day moving average of $122.00.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.06). The company had revenue of $7.69 billion during the quarter, compared to analyst estimates of $7.41 billion. Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%.Advanced Micro Devices's revenue for the quarter was up 31.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.69 earnings per share. Advanced Micro Devices has set its Q3 2025 guidance at EPS. Equities research analysts predict that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

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

Insiders Place Their Bets

In related news, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction on 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 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. This represents a 7.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Mark D. Papermaster sold 17,998 shares of the company's stock in a transaction on 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 transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in Advanced Micro Devices by 1.5% in the 2nd quarter. Vanguard Group Inc. now owns 154,648,859 shares of the semiconductor manufacturer's stock valued at $21,944,673,000 after buying an additional 2,281,508 shares during the last quarter. State Street Corp lifted its stake in Advanced Micro Devices by 0.8% in the second quarter. State Street Corp now owns 72,069,259 shares of the semiconductor manufacturer's stock valued at $10,226,628,000 after acquiring an additional 581,330 shares during the last quarter. Geode Capital Management LLC lifted its stake in Advanced Micro Devices by 1.4% in the second quarter. Geode Capital Management LLC now owns 36,690,685 shares of the semiconductor manufacturer's stock valued at $5,181,556,000 after acquiring an additional 514,445 shares during the last quarter. Norges Bank acquired a new stake in Advanced Micro Devices in the second quarter valued at $3,094,662,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Advanced Micro Devices by 9.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 21,401,436 shares of the semiconductor manufacturer's stock valued at $2,585,079,000 after acquiring an additional 1,929,225 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.