Advanced Micro Devices (NASDAQ:AMD) Trading Down 10.9% - What's Next?

Key Points

• AMD shares fell 10.9% as a broader semiconductor selloff hit chip stocks, with Broadcom’s softer AI revenue guidance helping spark the move. The stock traded as low as $463.95 after closing at $523.20.
• Despite the pullback, AMD’s latest quarterly results were strong, with revenue of $10.3 billion and EPS of $1.37, both above expectations. Revenue rose 37.8% year over year, underscoring continued growth in AI and data center demand.
• Analyst sentiment remains generally positive, but some caution is building: several firms raised price targets, while Zacks downgraded AMD from “strong-buy” to “hold”. Insider selling also weighed on sentiment, including CEO Lisa Su’s recent share sale under a pre-arranged trading plan.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price was down 10.9% on Friday . The company traded as low as $463.95 and last traded at $466.38. Approximately 46,318,234 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 38,590,426 shares. The stock had previously closed at $523.20.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD continues to benefit from strong long-term AI demand expectations, with analysts still generally constructive and recent price targets ranging as high as $665 from Barclays, suggesting upside if execution stays strong.
• Positive Sentiment: The company’s latest quarterly results were solid, with revenue of $10.3 billion in Q1 2026, up 37.8% year over year, showing that growth remains robust despite the sector pullback.
• Neutral Sentiment: Some commentary highlights AMD’s expanding role in CPUs and GPUs for AI infrastructure, reinforcing the long-term investment case, but these stories are more thematic than immediate catalysts. Article Title
• Neutral Sentiment: AMD remains a heavily followed stock, with institutional ownership and analyst attention still high, but that does not offset the near-term sector-driven volatility.
• Negative Sentiment: Broadcom’s softer AI revenue guidance triggered a semiconductor-wide selloff, and AMD was caught in the downdraft as investors reassessed the pace of AI spending.
• Negative Sentiment: Recent market data showed AMD among the biggest drag on major equity ETFs, reflecting the stock’s weakness as traders rotate out of high-multiple chip names.
• Negative Sentiment: A Zacks Research downgrade from “strong-buy” to “hold” adds to the cautious tone and may reinforce concern that near-term upside is more limited after AMD’s sharp rally.
• Negative Sentiment: Insider selling remains notable, with no insider purchases reported in recent months, which can weigh on sentiment when the stock is already under pressure.

Analysts Set New Price Targets

A number of research analysts recently issued reports on AMD shares. Wells Fargo & Company boosted their target price on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Northland Securities reiterated a "market perform" rating and set a $260.00 price objective on shares of Advanced Micro Devices in a research note on Monday, April 27th. Rosenblatt Securities upped their target price on Advanced Micro Devices from $300.00 to $490.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Mizuho lifted their price target on Advanced Micro Devices from $515.00 to $615.00 and gave the company an "outperform" rating in a research report on Monday. Finally, Bank of America boosted their price target on Advanced Micro Devices from $450.00 to $500.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $419.86.

Advanced Micro Devices Stock Performance

The stock has a market cap of $760.48 billion, a price-to-earnings ratio of 152.91, a P/E/G ratio of 1.60 and a beta of 2.50. The firm's 50-day moving average is $353.43 and its two-hundred day moving average is $263.57. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $10.25 billion during the quarter, compared to analysts' expectations of $9.90 billion. During the same period in the previous year, the business earned $0.96 earnings per share. The firm's revenue for the quarter was up 37.8% on a year-over-year basis. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Lisa T. Su sold 125,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total value of $55,688,750.00. Following the transaction, the chief executive officer directly owned 3,021,899 shares in the company, valued at approximately $1,346,286,223.49. This represents a 3.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president owned 105,222 shares of the company's stock, valued at $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 339,532 shares of company stock worth $119,504,341. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC boosted its stake in 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 buying an additional 29,438 shares during the period. Revolve Wealth Partners LLC raised its stake in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock valued at $1,001,000 after acquiring an additional 234 shares during the period. Sivia Capital Partners LLC lifted its holdings in shares of Advanced Micro Devices by 125.1% in 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 last quarter. United Bank boosted its position in shares of 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 purchasing an additional 2,392 shares during the period. Finally, Schnieders Capital Management LLC. boosted its position in shares of Advanced Micro Devices by 361.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock worth $1,310,000 after purchasing an additional 7,228 shares during the period. Hedge funds and other institutional investors 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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