Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.6% - Should You Sell?

Key Points

• AMD shares fell 1.6% in Tuesday trading, closing at $414.05 after touching an intraday low of $393.36. Volume was slightly below average, suggesting a modest pullback rather than a major selloff.
• Wall Street remains broadly bullish despite mixed short-term sentiment: several firms recently raised price targets, and the stock carries a “Moderate Buy” consensus with an average target of $410. Analysts are betting on continued AI and data-center demand to drive growth.
• Recent earnings were strong, with AMD beating estimates on both EPS and revenue in its latest quarterly report. However, insider selling and broader semiconductor-sector weakness are creating some near-term pressure on the shares.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) was down 1.6% during trading on Tuesday . The stock traded as low as $393.36 and last traded at $414.05. Approximately 38,514,548 shares were traded during trading, a decline of 2% from the average daily volume of 39,372,969 shares. The stock had previously closed at $420.99.

More Advanced Micro Devices News

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

• Positive Sentiment: Analysts remain bullish overall, with recent target hikes from firms including Citi and Evercore supporting the long-term AMD growth story.
• Positive Sentiment: AMD is increasingly tied to AI infrastructure demand, especially server CPUs and data-center expansion, which could support future revenue growth.
• Positive Sentiment: Potential easing of U.S.-China AI chip restrictions could be a catalyst if AMD regains more access to the China market. Article title
• Neutral Sentiment: Recent coverage continues to frame AMD as a strong growth stock, but many articles also note the shares have already had a very strong run. Article title
• Negative Sentiment: Broader chip-sector weakness and warnings that semiconductors are a crowded trade are creating near-term selling pressure. Article title
• Negative Sentiment: Heavy insider selling over the past six months is a sentiment overhang, even though it does not change AMD’s operating momentum.

Wall Street Analyst Weigh In

Several research analysts have recently commented on AMD shares. Barclays lifted their price target on Advanced Micro Devices from $300.00 to $500.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Jefferies Financial Group lowered Advanced Micro Devices from a "buy" rating to a "hold" rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. KeyCorp boosted their price objective on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, BTIG Research upgraded shares of Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and an average price target of $410.00.

Advanced Micro Devices Stock Performance

The company has a market capitalization of $675.15 billion, a price-to-earnings ratio of 135.75, a P/E/G ratio of 1.26 and a beta of 2.40. 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 firm has a 50-day simple moving average of $277.92 and a two-hundred day simple moving average of $241.53.

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

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the firm's stock in a transaction that occurred on 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 sale, the chief executive officer owned 3,021,899 shares of the company's stock, valued at $1,346,286,223.49. This trade represents a 3.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the sale, the executive vice president directly owned 1,236,037 shares in the company, valued at approximately $432,612,950. This trade represents a 2.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 309,598 shares of company stock valued at $105,644,316 over the last 90 days. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Several hedge funds have recently added to or reduced their stakes in the company. Joseph Group Capital Management acquired a new stake in shares of Advanced Micro Devices in the fourth quarter valued at approximately $25,000. Koesten Hirschmann & Crabtree INC. boosted 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 acquiring an additional 61 shares during the period. Sarver Vrooman Wealth Advisors acquired a new stake in shares of Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Cornerstone Financial Management LLC acquired a new stake in shares of Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Finally, Basepoint Wealth LLC acquired a new stake in shares of Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds own 71.34% of the company's stock.

About Advanced Micro Devices

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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