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

Key Points

• Advanced Micro Devices' shares gapped down, opening at $150.96 after a previous close of $159.16, and last traded at $154.68 with a volume of about 32.8 million shares.
• Analyst ratings for AMD remain optimistic, with a consensus rating of "Moderate Buy" and a price target of $180.88 as multiple brokerages issued upgraded price objectives.
• The company's latest earnings report revealed a missed EPS estimate of $0.48 against a forecast of $0.54, despite revenue rising to $7.69 billion, up 31.7% year-over-year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $159.16, but opened at $150.96. Advanced Micro Devices shares last traded at $154.68, with a volume of 32,809,165 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Citigroup raised their target price on shares of Advanced Micro Devices from $145.00 to $165.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. DZ Bank raised shares of Advanced Micro Devices from a "sell" rating to a "hold" rating and set a $165.00 price target for the company in a research report on Thursday, August 7th. Mizuho raised their price target on shares of Advanced Micro Devices from $183.00 to $205.00 and gave the company an "outperform" rating in a research report on Thursday, August 14th. Seaport Res Ptn downgraded shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 4th. Finally, Raymond James Financial raised their price target on shares of Advanced Micro Devices from $120.00 to $200.00 and gave the company an "outperform" rating in a research report on Wednesday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $180.88.

Advanced Micro Devices Stock Down 0.3%

The company's 50 day moving average price is $165.02 and its two-hundred day moving average price is $129.33. The firm has a market cap of $255.42 billion, a PE ratio of 90.45, a PEG ratio of 1.85 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.

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 analysts' consensus estimates of $0.54 by ($0.06). Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. During the same quarter in the prior year, the firm posted $0.69 earnings per share. The business's revenue was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the completion of the sale, the executive vice president owned 125,505 shares of the company's stock, valued at $21,738,721.05. This represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Forrest Eugene Norrod sold 17,200 shares of the stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $160.93, for a total transaction of $2,767,996.00. Following the completion of the sale, the executive vice president owned 313,848 shares in the company, valued at $50,507,558.64. The trade was a 5.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 270,198 shares of company stock worth $44,183,576 over the last quarter. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors have recently made changes to their positions in the stock. WT Wealth Management acquired a new stake in shares of Advanced Micro Devices during the second quarter valued at about $248,000. SevenBridge Financial Group LLC lifted its stake in Advanced Micro Devices by 9.8% in the second quarter. SevenBridge Financial Group LLC now owns 6,214 shares of the semiconductor manufacturer's stock worth $882,000 after acquiring an additional 557 shares during the last quarter. American Trust purchased a new position in Advanced Micro Devices in the second quarter worth approximately $233,000. FSC Wealth Advisors LLC lifted its stake in Advanced Micro Devices by 18.8% in the second quarter. FSC Wealth Advisors LLC now owns 949 shares of the semiconductor manufacturer's stock worth $135,000 after acquiring an additional 150 shares during the last quarter. Finally, Evolution Wealth Management Inc. purchased a new stake in shares of Advanced Micro Devices during the 2nd quarter worth approximately $34,000. 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.