Advanced Micro Devices (NASDAQ:AMD) Trading Down 3.1% - What's Next?

Key Points

• Advanced Micro Devices (AMD) shares fell by 3.1% on Friday, closing at $163.30, with trading volume down significantly at 15.57 million shares compared to its average of 46.6 million.
• Analysts have mixed ratings for AMD, with some upgrades raising target prices significantly, including UBS Group boosting theirs to $210.00, while Dbs Bank downgraded from "strong-buy" to "hold."
• Despite reporting lower-than-expected earnings of $0.48 per share, AMD's revenue increased by 31.7% year-over-year to $7.69 billion, surpassing analyst expectations.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was down 3.1% on Friday . The company traded as low as $161.90 and last traded at $163.30. Approximately 15,575,553 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 46,603,316 shares. The stock had previously closed at $168.58.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on AMD shares. Dbs Bank downgraded shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 8th. JPMorgan Chase & Co. boosted their target price on shares of Advanced Micro Devices from $120.00 to $180.00 and gave the stock a "neutral" rating in a report on Wednesday, August 6th. Stifel Nicolaus boosted their target price on shares of Advanced Micro Devices from $161.00 to $190.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. UBS Group boosted their target price on shares of Advanced Micro Devices from $150.00 to $210.00 and gave the stock a "buy" rating in a report on Monday, July 28th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $200.00 price target on shares of Advanced Micro Devices in a report on Friday, June 13th. Four research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $181.33.

Advanced Micro Devices Price Performance

The company has a market capitalization of $265.14 billion, a P/E ratio of 93.82, a P/E/G ratio of 1.98 and a beta of 1.94. The firm's fifty day moving average is $158.65 and its 200 day moving average is $123.56. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.06). The company had revenue of $7.69 billion during the quarter, compared to analysts' expectations of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. Advanced Micro Devices's quarterly revenue was up 31.7% on a year-over-year basis. During the same period last year, the firm earned $0.69 earnings per share. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices announced that its board has initiated a stock repurchase plan on Wednesday, May 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to repurchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 225,000 shares of the business's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $163.97, for a total value of $36,893,250.00. Following the completion of the sale, the chief executive officer directly owned 3,359,748 shares of the company's stock, valued at $550,897,879.56. The trade was a 6.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Paul Darren Grasby sold 10,000 shares of the business's stock in a transaction dated 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 directly owned 125,505 shares of the company's stock, valued at approximately $21,738,721.05. This trade represents a 7.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 252,998 shares of company stock valued at $41,415,580 in the last three months. Company insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of the business. China Universal Asset Management Co. Ltd. lifted its position in shares of Advanced Micro Devices by 26.1% in the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 63,358 shares of the semiconductor manufacturer's stock worth $8,990,000 after purchasing an additional 13,114 shares during the period. Orion Porfolio Solutions LLC lifted its position in shares of Advanced Micro Devices by 16.8% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 71,811 shares of the semiconductor manufacturer's stock worth $10,190,000 after purchasing an additional 10,336 shares during the period. Munro Partners purchased a new stake in shares of Advanced Micro Devices in the 2nd quarter worth approximately $89,888,000. Thrivent Financial for Lutherans lifted its position in shares of Advanced Micro Devices by 14.2% in the 2nd quarter. Thrivent Financial for Lutherans now owns 127,388 shares of the semiconductor manufacturer's stock worth $18,150,000 after purchasing an additional 15,838 shares during the period. Finally, MASTERINVEST Kapitalanlage GmbH purchased a new stake in shares of Advanced Micro Devices in the 2nd quarter worth approximately $4,614,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

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.

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