Advanced Micro Devices (NASDAQ:AMD) Trading Down 4.3% - Time to Sell?

Key Points

• AMD shares fell 4.3% on Thursday as investors took profits after a strong run in chip stocks, with trading volume below average and the stock closing well off its prior level.
• Despite the pullback, Wall Street remains largely bullish: Wells Fargo raised its price target to $615, and analysts continue to view AMD as a long-term AI and data center winner, though the stock’s rich valuation could keep volatility high.
• Fundamentals and product momentum remain strong, with AMD recently beating earnings and revenue estimates and unveiling new Versal Premium Gen 2 adaptive SoCs aimed at AI, networking, defense, and aerospace markets.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was down 4.3% during trading on Thursday . The stock traded as low as $506.00 and last traded at $517.82. 27,840,596 shares traded hands during trading, a decline of 26% from the average daily volume of 37,559,352 shares. The stock had previously closed at $540.88.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Wells Fargo raised its price target on AMD to $615, reinforcing Wall Street’s bullish view on the company’s AI CPU and data center growth. This Analyst Just Raised the Price Target on AMD Stock. Here's Why.
• Positive Sentiment: AMD introduced Versal Premium Gen 2 adaptive SoCs for AI, networking, defense, and aerospace markets, expanding its product mix beyond CPUs and GPUs. AMD (AMD) Unveils Versal Premium Gen 2 For AI And Aerospace Markets
• Positive Sentiment: Analysts and commentators continued to highlight AMD as a long-term AI winner, with some calling the recent pullback a buying opportunity. Should Investors Buy AMD Stock after the Selloff? Here’s What Wall Street Thinks
• Neutral Sentiment: AMD’s strong second-quarter rally and record market value have increased visibility, but also make the stock more vulnerable to volatility if investors rotate out of high-multiple AI winners. Record chip rally adds $2 trillion in combined value to Micron, Intel and AMD in second quarter
• Negative Sentiment: AMD declined alongside other chip stocks as investors locked in gains after the sector’s recent surge, signaling profit-taking across AI semiconductors. MU, SNDK, NVDA, and AMD Stocks Turn Red after Early Gains Fade
• Negative Sentiment: A rumor that GPU prices may rise again added to concerns about demand and pricing dynamics, contributing to the stock’s weakness. AMD Stock Slips on a GPU Price Increase Rumor
• Negative Sentiment: Articles warning that AMD’s valuation already reflects a lot of future growth suggest the stock may be due for continued near-term volatility. 1 Major Warning Flag AMD and Intel Investors Can't Afford to Ignore

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AMD. Roth Mkm restated a "buy" rating and issued a $500.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Needham & Company LLC raised Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Evercore reiterated an "outperform" rating and issued a $579.00 price target on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Citigroup downgraded shares of Advanced Micro Devices from a "buy" rating to a "market perform" rating in a report on Friday, June 12th. Finally, Royal Bank Of Canada lifted their price target on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the company a "sector perform" rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and an average price target of $448.78.

Advanced Micro Devices Price Performance

The business has a 50-day simple moving average of $461.80 and a two-hundred day simple moving average of $303.66. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $844.36 billion, a price-to-earnings ratio of 169.78, a P/E/G ratio of 1.71 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates 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 firm had revenue of $10.25 billion during the quarter, compared to analysts' expectations of $9.90 billion. During the same period last year, the firm posted $0.96 earnings per share. The firm's revenue for the quarter was up 37.8% compared to the same quarter last year. As a group, research analysts predict that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 6,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the transaction, the executive vice president directly owned 1,233,687 shares in the company, valued at $661,663,348.71. The trade was a 0.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the firm's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 378,032 shares of company stock valued at $161,876,596 in the last three months. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in AMD. Clal Insurance Enterprises Holdings Ltd grew its holdings in shares of Advanced Micro Devices by 12.8% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer's stock worth $43,000 after purchasing an additional 24 shares in the last quarter. Trust Co of the South increased its holdings in Advanced Micro Devices by 1.5% in the 2nd quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer's stock valued at $1,014,000 after buying an additional 25 shares during the period. CLG LLC raised its stake in shares of Advanced Micro Devices by 3.1% in the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer's stock valued at $205,000 after buying an additional 30 shares in the last quarter. Columbia Bank increased its stake in Advanced Micro Devices by 0.7% in the first quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer's stock valued at $1,055,000 after acquiring an additional 34 shares during the period. Finally, Evolution Wealth Management Inc. lifted its stake in Advanced Micro Devices by 11.0% during the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer's stock worth $72,000 after purchasing an additional 35 shares during the period. 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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