Advanced Micro Devices (NASDAQ:AMD) Trading Down 4.2% - Time to Sell?

Key Points

• AMD shares fell 4.2% in Monday trading to as low as $526.92, with volume below average, suggesting the move was more muted than a full-blown selloff.
• Despite the drop, fundamentals and analyst sentiment remain strong: AMD’s latest quarter beat estimates on both earnings and revenue, and TD Cowen recently raised its price target to $675 amid optimism around AI demand.
• Short-term weakness appears tied to broader market pressure and profit-taking, as chip stocks were hit by sector-wide jitters while investors locked in gains after AMD’s strong run and record highs.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price traded down 4.2% during mid-day trading on Monday . The stock traded as low as $526.92 and last traded at $534.39. 22,816,317 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 36,991,375 shares. The stock had previously closed at $557.89.

Advanced Micro Devices News Summary

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

• Positive Sentiment: TD Cowen reportedly raised its price target on AMD to $675, highlighting ongoing optimism around AI demand and the company’s strong quarterly revenue performance. Advanced Micro Devices (AMD) Stock Surges as Wall Street Analysts Boost Price Targets
• Positive Sentiment: AMD’s Q1 results beat expectations, with revenue of $10.25 billion versus estimates of $9.90 billion, underscoring strong demand in its data center and AI businesses. Advanced Micro Devices (AMD) Stock Surges as Wall Street Analysts Boost Price Targets
• Positive Sentiment: Several articles argued that AMD could benefit from Nvidia-related delays or competitive missteps, which supports the view that AMD remains a key AI infrastructure alternative. Did Nvidia's 2028 Rack Delay Under Jensen Huang Open a Door for AMD and Google?
• Neutral Sentiment: Media coverage continues to frame AMD as a major AI winner and a direct competitor to Nvidia, but much of that commentary is thematic rather than news-driven. AMD's 5C Deal Positions It as a Direct NVIDIA Rival
• Negative Sentiment: AMD was included among the chip stocks falling as broader market jitters hit semiconductors, suggesting today’s weakness is partly a sector-wide risk-off move. AMD Stock Drops 5: Why Global Supply Chain Fears and Tech Profit-Taking Are Hurting Chip Giants
• Negative Sentiment: Some investors appear to be taking profits after AMD’s strong run and recent record highs, which can create short-term pressure even when fundamentals remain solid. Intel, AMD, Sandisk, and More Stocks That Explain Today's Market

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Royal Bank Of Canada boosted their target price on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the company a "sector perform" rating in a research note on Wednesday, May 6th. Needham & Company LLC raised shares of Advanced Micro Devices to a "buy" rating in a research note on Wednesday, May 6th. Wedbush lifted their price target on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the stock an "outperform" rating in a report on Monday, May 4th. Erste Group Bank raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Thursday, April 2nd. Finally, TD Cowen raised their target price on shares of Advanced Micro Devices from $600.00 to $675.00 and gave the stock a "buy" rating in a research report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $460.95.

Advanced Micro Devices Stock Performance

The company has a market cap of $870.97 billion, a price-to-earnings ratio of 175.13, a P/E/G ratio of 1.64 and a beta of 2.47. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The stock's 50 day moving average price is $491.60 and its 200 day moving average price is $319.65.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion for the quarter, compared to analysts' expectations of $9.90 billion. During the same period last year, the company earned $0.96 earnings per share. The company's quarterly revenue was up 37.8% on a year-over-year basis. On average, analysts expect that Advanced Micro Devices, Inc. will post 6.18 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer directly owned 2,896,899 shares of the company's stock, valued at approximately $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the transaction, the director directly owned 87,173 shares in the company, valued at $45,504,306. This represents a 9.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 374,739 shares of company stock worth $161,135,671. 0.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently made changes to their positions in the business. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices during the fourth quarter valued at approximately $25,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at about $27,000. Cornerstone Financial Management LLC acquired a new position in Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Basepoint Wealth LLC bought a new position in Advanced Micro Devices during the 4th quarter worth $30,000. Finally, Graney & King LLC bought a new position in shares of Advanced Micro Devices during the first quarter worth about $31,000. 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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