Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 6.5% - Should You Sell?

Key Points

• AMD shares fell 6.5% on Tuesday amid a broader semiconductor selloff and renewed worries that AI-chip valuations have run ahead of near-term earnings. The stock traded as low as $503.11 after closing at $552.05.
• Fundamentals and analyst sentiment remain positive, with AMD recently beating earnings and revenue expectations and several Wall Street firms raising price targets on expectations for strong server CPU demand and AI growth. The consensus rating remains Moderate Buy.
• AMD is expanding beyond its core markets after landing Japanese autonomous-driving startup Turing as a customer for its AI accelerators, highlighting progress in self-driving AI and other new growth areas. Insider selling has continued, though the transactions were made under pre-arranged trading plans.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price was down 6.5% on Tuesday . The company traded as low as $503.11 and last traded at $516.11. Approximately 28,776,163 shares were traded during mid-day trading, a decline of 23% from the average session volume of 37,410,785 shares. The stock had previously closed at $552.05.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD landed Japanese autonomous-driving startup Turing as a new customer, and Turing said it has started using AMD AI accelerators in its autonomous vehicle systems. The deal expands AMD’s reach beyond data centers and gaming into self-driving AI. AMD Just Scored a New Autonomous Driving Customer. It’s Aiming at Nvidia in Another Arena.
• Positive Sentiment: Wall Street sentiment remains constructive, with Goldman Sachs, Wells Fargo, and other firms reiterating bullish views and lifting price targets on expectations for strong server CPU demand and continued AI growth. AMD Stock Soars as Goldman Raises Price Target on ‘Strong Server CPU Demand’
• Positive Sentiment: AMD’s Ryzen AI push is being framed as a growing “agentic AI” opportunity, with demand for high-performance CPUs in AI PCs and servers supporting a longer-term upside narrative. AMD Ryzen Strengthens Agentic AI Footprint: More Upside Ahead?
• Positive Sentiment: Recent commentary continues to highlight AMD’s strong fundamentals, including rapid revenue growth and a booming data center business, which supports the stock’s longer-term AI re-rating story. 1 Prediction for AMD Stock Over the Next 5 Years
• Neutral Sentiment: Some index and benchmark reshuffling is changing how investors classify AMD, but it is more of a technical portfolio-flow issue than a direct business catalyst. Advanced Micro Devices (AMD) Wins Fresh Analyst Backing, Is The Upside Already Priced In?
• Negative Sentiment: AMD is being hit by a broad semiconductor selloff as investors take profits in AI chip leaders, with the entire group pressured by fears that valuations have run ahead of near-term earnings. AMD sinks as semiconductor selloff and AI valuation worries pressure the stock
• Negative Sentiment: Market chatter also points to lingering caution around the AI trade, with traders waiting for the next product and customer catalyst before bidding the stock higher again.

Wall Street Analyst Weigh In

A number of research firms recently commented on AMD. Evercore restated an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. HSBC downgraded Advanced Micro Devices from a "buy" rating to a "hold" rating and increased their price target for the stock from $335.00 to $340.00 in a report on Monday, May 4th. Wells Fargo & Company raised their target price on shares of Advanced Micro Devices from $505.00 to $615.00 and gave the stock an "overweight" rating in a report on Tuesday, June 30th. Benchmark lifted their price target on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Finally, TD Cowen increased their price objective on shares of Advanced Micro Devices from $500.00 to $600.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Advanced Micro Devices currently has an average rating of "Moderate Buy" and a consensus price target of $453.92.

Advanced Micro Devices Trading Down 6.5%

The firm has a market cap of $841.57 billion, a price-to-earnings ratio of 169.22, a P/E/G ratio of 1.53 and a beta of 2.47. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The business has a 50-day moving average of $470.75 and a 200-day moving average of $308.01.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. The firm had revenue of $10.25 billion during the quarter, compared to analysts' expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company's revenue for the quarter was up 37.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.96 earnings per share. Research analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 6,000 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the sale, the executive vice president owned 1,233,687 shares of the company's stock, valued at $661,663,348.71. This trade represents a 0.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the transaction, the executive vice president directly owned 324,527 shares of the company's stock, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 374,739 shares of company stock valued at $161,135,671. Insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

A number of hedge funds have recently modified their holdings of AMD. Brighton Jones LLC increased its holdings in shares of Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after purchasing an additional 29,438 shares during the period. Revolve Wealth Partners LLC grew its position in Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock worth $1,001,000 after buying an additional 234 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Advanced Micro Devices by 125.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock worth $758,000 after acquiring an additional 2,970 shares during the period. United Bank increased its stake in Advanced Micro Devices by 22.0% during the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock worth $1,881,000 after acquiring an additional 2,392 shares during the period. Finally, Schnieders Capital Management LLC. raised its holdings in Advanced Micro Devices by 361.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock valued at $1,310,000 after acquiring an additional 7,228 shares in the last quarter. Institutional investors and hedge funds own 71.34% of the company's stock.

Advanced Micro Devices Company Profile

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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