Advanced Micro Devices (NASDAQ:AMD) Shares Down 8.1% - Here's What Happened

Key Points

• AMD shares fell 8.1% to $537.92 on Friday from a prior close of $585.30; trading volume was 77% below its average. The article does not identify a specific catalyst for the decline.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $640.11. The company’s latest quarterly results beat estimates, with revenue up 44.7% year over year.
• AMD’s AI opportunity faces execution and policy risks, including elevated inventory, limited experience delivering large-scale AI systems, and potential export restrictions.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price traded down 8.1% during trading on Friday. The stock traded as low as $546.80 and last traded at $537.92. Approximately 7,476,006 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 32,257,818 shares. The stock had previously closed at $585.30.

Trending Headlines about Advanced Micro Devices

Here are a few of the latest headlines about AMD:

• Positive Sentiment: Analysts see a potential opening for AMD as Nvidia faces leadership turmoil and customers consider alternative suppliers. William Blair reiterated its bullish stance, while Bank of America recently raised its price target to $700; AMD’s expanding AI product lineup and strong data-center growth add to the positive case. Article: Nvidia Shares Are Bleeding Red as Jensen Huang Resigns, But Analysts See Huge Runway for Rival AMD’s Stock
• Neutral Sentiment: The Nvidia upheaval has helped direct investor attention toward AMD, but the rotation may be uneven: AMD and other rivals reportedly gave back some gains as Nvidia shares rebounded in premarket trading. Article: AMD, Broadcom stocks fall 2% as Nvidia rebounds
• Negative Sentiment: Risks include AMD’s swelling inventory and limited track record shipping large-scale AI systems, which could make it difficult to convert customer interest into sales. Proposed broader export controls and compliance requirements could also hamper international deployments across the chip industry. Article: AMD’s Path to $700 Just Got Much Easier as Enterprise and Hyperscaler Diversification Tailwinds Rise

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on AMD. TD Cowen restated a "buy" rating on shares of Advanced Micro Devices in a research note on Monday, October 19th. Melius Research set a $650.00 price target on Advanced Micro Devices in a report on Wednesday, November 4th. Wedbush restated an "outperform" rating and issued a $600.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $540.00 price objective on shares of Advanced Micro Devices in a research note on Thursday. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $675.00 target price on shares of Advanced Micro Devices in a report on Wednesday, November 4th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $640.11.

Advanced Micro Devices Stock Performance

The company has a market capitalization of $858.66 billion, a price-to-earnings ratio of 113.81, a price-to-earnings-growth ratio of 5.32 and a beta of 2.49. The firm has a fifty day simple moving average of $552.99 and a 200 day simple moving average of $420.72. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.72 and a quick ratio of 1.93.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.95 by $0.14. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The firm had revenue of $13.38 billion for the quarter, compared to analyst estimates of $13.10 billion. During the same quarter last year, the firm posted $1.20 EPS. The business's revenue was up 44.7% on a year-over-year basis. On average, analysts anticipate that Advanced Micro Devices, Inc. will post 6.93 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Forrest Norrod sold 17,262 shares of the company's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the sale, the executive vice president owned 353,317 shares of the company's stock, valued at approximately $191,038,501.90. This represents a 4.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares of the company's stock, valued at approximately $595,245,602.07. The trade was a 2.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 223,588 shares of company stock valued at $111,208,302. 0.50% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. increased its holdings in shares of Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock worth $87,311,650,000 after buying an additional 4,535,126 shares during the last quarter. State Street Corp increased its stake in Advanced Micro Devices by 2.9% during the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer's stock worth $46,606,266,000 after acquiring an additional 2,149,563 shares during the last quarter. Bank of America Corp DE acquired a new stake in Advanced Micro Devices during the second quarter worth $7,022,226,000. Jennison Associates LLC increased its stake in Advanced Micro Devices by 5.8% during the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer's stock worth $5,793,388,000 after acquiring an additional 545,575 shares during the last quarter. Finally, Wellington Management Group LLP raised its position in Advanced Micro Devices by 33.9% in the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer's stock valued at $5,422,444,000 after purchasing an additional 2,365,419 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

About Advanced Micro Devices

Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors. The company's product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.

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