Advanced Micro Devices (NASDAQ:AMD) Trading Down 5.8% - Here's What Happened

Key Points

• AMD shares fell 5.8% on Tuesday, trading as low as $506.81 and closing below the prior session after a lighter-than-average volume day. The move was part of a broader chip-sector selloff tied to profit-taking and weaker risk appetite.
• Despite the drop, recent coverage remains upbeat on AMD’s AI growth outlook, including stronger data-center CPU demand, rising EPYC adoption, and the strategic value of its MEXT acquisition. Several articles suggest these developments could improve AMD’s long-term positioning.
• Wall Street sentiment is still constructive, with more than 40 analysts reportedly rating AMD a buy and a consensus target price well above the current share price. The company also posted strong quarterly results, beating EPS and revenue estimates with revenue up 37.8% year over year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price traded down 5.8% on Tuesday . The stock traded as low as $506.81 and last traded at $519.85. Approximately 29,294,034 shares changed hands during trading, a decline of 23% from the average session volume of 37,889,266 shares. The stock had previously closed at $551.63.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD’s acquisition of MEXT is being viewed as a strategic boost to its AI and memory-software efforts, which could strengthen its long-term growth story and support higher valuation multiples. With Its MEXT Acquisition, Advanced Micro Devices Stock Could Rally to Higher Highs
• Positive Sentiment: Several articles highlighted AMD’s expanding AI position, including stronger data-center CPU demand and rising EPYC adoption, reinforcing optimism about the company’s long-term AI revenue opportunity. Why AMD's AI Position Is Expanding
• Positive Sentiment: Wall Street sentiment remains constructive, with more than 40 analysts reportedly rating AMD a buy and recent price targets clustered well above current levels. Over 40 Analysts Rate AMD a Buy, Here’s Why We Agree
• Positive Sentiment: Reatan’s global launch of an AI mini PC powered by AMD Ryzen AI 9 HX 470 adds another product win for AMD’s consumer AI chip lineup. Next-Gen AI Powerhouse: Reatan Announces Global Launch of Reatan X8 Mini PC Powered by AMD Ryzen AI 9 HX 470 Processor
• Neutral Sentiment: Analysts and market commentators continue debating whether AMD’s sharp rally has run ahead of fundamentals, suggesting the stock may remain volatile even as AI demand stays strong. Massive News: AMD AI Growth Sparks $120B Market Ambition
• Negative Sentiment: AMD is being dragged lower by a broad chip selloff, with semiconductor peers also under pressure amid profit-taking and weaker risk appetite. Nvidia, AMD, and Micron Slide as Global AI Stock Sell-Off Hits Chip Sector
• Negative Sentiment: Reports also flagged insider selling over the past few months, which may add to investor caution even though it does not appear to be the main driver of today’s decline. Sell alert? AMD insiders dumped $60 million worth of stock since June started

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Susquehanna raised their price target on Advanced Micro Devices from $375.00 to $450.00 and gave the company a "positive" rating in a report on Wednesday, May 6th. BTIG Research raised shares of Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Raymond James Financial started coverage on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. They issued a "market perform" rating for the company. Morgan Stanley boosted their price target on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Finally, Truist Financial set a $478.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $430.68.

Advanced Micro Devices Trading Down 5.8%

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 firm's 50-day simple moving average is $423.46 and its 200 day simple moving average is $288.05. The stock has a market capitalization of $847.67 billion, a P/E ratio of 170.44, a PEG ratio of 1.58 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.08. The company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business's revenue for the quarter was up 37.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.96 EPS. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 EPS for the current fiscal year.

Insider Activity

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Mark D. Papermaster sold 6,000 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value 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. This represents a 0.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 378,032 shares of company stock valued at $161,876,596 in the last ninety days. 0.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of AMD. Brighton Jones LLC increased its position in shares of Advanced Micro Devices by 178.2% in the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after acquiring an additional 29,438 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock worth $1,001,000 after purchasing an additional 234 shares during the period. Sivia Capital Partners LLC grew its position in Advanced Micro Devices by 125.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock worth $758,000 after purchasing an additional 2,970 shares in the last quarter. United Bank grew its position in Advanced Micro Devices by 22.0% during the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock worth $1,881,000 after purchasing an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. raised its stake in Advanced Micro Devices by 361.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock valued at $1,310,000 after purchasing an additional 7,228 shares during the period. 71.34% of the stock is owned by hedge funds and other institutional investors.

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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