Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.2% - Here's Why

Key Points

• AMD shares fell 1.2% on Monday, trading as low as $486.80 before last changing hands at $510.13, below the prior close of $516.10.
• Despite the dip, analysts remain broadly upbeat: several firms raised price targets, and the consensus rating is Moderate Buy with an average target of $419.86.
• Recent news was mixed, with positives including new Ryzen X3D chips, EPYC production ramp progress, and a $10 billion Taiwan AI infrastructure commitment, while negatives included Nvidia competition and new U.S. export restrictions on advanced AI chips.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was down 1.2% during trading on Monday . The stock traded as low as $486.80 and last traded at $510.13. Approximately 33,115,383 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 38,836,207 shares. The stock had previously closed at $516.10.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: new Ryzen X3D gaming chips and extended AM5 platform support through 2029, which support its client-chip roadmap. What's Going On With AMD Stock Monday?
• Positive Sentiment: raised price target from Mizuho to $615, signaling continued Wall Street confidence in upside from current levels. Benzinga / The Fly report
• Positive Sentiment: ongoing ramp of its Venice EPYC server processor and broader AI data center buildout, which support the bullish long-term growth narrative. Advanced Micro Devices Inc (AMD) Starts Venice EPYC Processor Production Ramp
• Positive Sentiment: major commitment to more than $10 billion for AI infrastructure in Taiwan, reinforcing its long-term AI hardware ambitions. AMD Taiwan AI Bet Tests Long Term Data Center Ambitions
• Neutral Sentiment: stock commentary noting AMD is still viewed as a hold near record highs, suggesting momentum is strong but much of the optimism may already be priced in. AMD Nearing 52-Week High: Buy, Sell or Hold?
• Negative Sentiment: Nvidia’s RTX Spark launch raised competitive pressure in PC chips and contributed to the day’s slide in AMD shares. Nvidia Just Derailed the Chip Rally. Intel, AMD Are Falling Sharply.
• Negative Sentiment: new U.S. export restrictions on advanced AI chips add regulatory uncertainty for AMD’s China-related sales opportunities. Nvidia and AMD face new export limits on China subsidiaries

Analyst Upgrades and Downgrades

Several equities analysts have commented on AMD shares. KeyCorp upped their price objective on Advanced Micro Devices from $330.00 to $530.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Royal Bank Of Canada upped their price objective on Advanced Micro Devices from $325.00 to $400.00 and gave the company a "sector perform" rating in a research report on Wednesday, May 6th. Barclays upped their price objective on Advanced Micro Devices from $500.00 to $665.00 and gave the company an "overweight" rating in a research report on Monday. Erste Group Bank raised Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Thursday, April 2nd. Finally, Wedbush increased their price target on Advanced Micro Devices from $290.00 to $400.00 and gave the stock an "outperform" rating in a research report on Monday, May 4th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, Advanced Micro Devices currently has an average rating of "Moderate Buy" and a consensus price target of $419.86.

Advanced Micro Devices Stock Down 1.2%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The stock has a market capitalization of $831.82 billion, a PE ratio of 167.26, a PEG ratio of 1.52 and a beta of 2.50. The business has a 50 day moving average of $327.78 and a two-hundred day moving average of $255.78.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released 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. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company had revenue of $10.25 billion during the quarter, compared to analysts' expectations of $9.90 billion. During the same period last year, the business posted $0.96 earnings per share. The firm's revenue was up 37.8% compared to the same quarter last year. Analysts predict that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated 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 sale, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total value of $55,688,750.00. Following the completion of the sale, the chief executive officer owned 3,021,899 shares of the company's stock, valued at approximately $1,346,286,223.49. This trade represents a 3.97% 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. In the last ninety days, insiders have sold 329,085 shares of company stock valued at $114,051,007. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Joseph Group Capital Management acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $25,000. Koesten Hirschmann & Crabtree INC. increased its holdings in shares of Advanced Micro Devices by 61.0% in the third quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 61 shares during the period. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $27,000. Cornerstone Financial Management LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $27,000. Finally, Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $30,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

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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