Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.9% - Here's What Happened

Key Points

• AMD shares fell 3.9% to $620.68 amid broader pressure on high-growth AI stocks, as rising Treasury yields, higher oil prices and concerns about elevated valuations prompted investor rotation.
• Despite the decline, AMD’s fundamentals remain strong: data-center revenue reportedly surged 107% year over year to $6.7 billion, while its latest quarterly revenue rose 50.1% to $11.54 billion and exceeded analyst expectations.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $585.26 average price target, but AMD’s valuation and recent insider selling—including transactions under pre-arranged trading plans—remain key risks for investors.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) traded down 3.9% during trading on Thursday. The company traded as low as $613.34 and last traded at $620.68. 23,312,932 shares changed hands during mid-day trading, a decline of 28% from the average session volume of 32,601,613 shares. The stock had previously closed at $645.86.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD’s data-center revenue reportedly surged 107% year over year to $6.7 billion, highlighting strong demand for its AI accelerators and server processors. Industry forecasts also point to continued expansion in global AI infrastructure spending. AMD Stock: Drops Despite Record Revenue and Surging AI Data Center Demand
• Positive Sentiment: TSMC reported record quarterly revenue, up 50% year over year and above expectations, providing evidence that demand for AMD and other AI processors remains robust. Nvidia and AMD Fuel a $46.7B TSMC Quarter
• Positive Sentiment: CEO Lisa Su’s discussions with Samsung and SK Hynix could strengthen AMD’s access to memory and foundry capacity as AI-related supply constraints persist. AMD also plans to report third-quarter results on November 3, giving investors a near-term catalyst. AMD CEO Says AMD Continues to Explore Foundry Partnership With Samsung
• Neutral Sentiment: Analyst sentiment remains generally constructive, including a major price-target increase from Citi and a bullish BNP Paribas view. However, AMD’s valuation has risen sharply, leaving little room for execution or earnings disappointments. Citi’s Price Target Boost Lifts AMD Shares
• Negative Sentiment: Rising Treasury yields and oil prices are increasing inflation and interest-rate concerns, pressuring high-growth technology multiples and prompting investors to rotate out of heavily valued AI stocks. Reports also note extensive insider selling, although these transactions may reflect scheduled profit-taking rather than a change in business fundamentals. Why Are Intel and AMD Stocks Plunging?

Wall Street Analysts Forecast Growth

AMD has been the topic of several analyst reports. Roth Capital boosted their price target on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a "buy" rating in a report on Friday, July 24th. Raymond James Financial raised shares of Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and raised their price objective for the stock from $565.00 to $641.00 in a report on Tuesday, August 25th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Advanced Micro Devices in a research report on Monday. Rosenblatt Securities reissued a "buy" rating and issued a $700.00 target price on shares of Advanced Micro Devices in a research note on Tuesday, September 29th. Finally, BMO Capital Markets started coverage on shares of Advanced Micro Devices in a research note on Thursday, August 20th. They set an "outperform" rating and a $550.00 price target for the company. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $585.26.

Advanced Micro Devices Stock Performance

The firm has a fifty day simple moving average of $523.60 and a 200-day simple moving average of $455.44. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The stock has a market cap of $1.01 trillion, a price-to-earnings ratio of 159.56, a P/E/G ratio of 6.73 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the prior year, the company posted $0.48 EPS. The company's revenue was up 50.1% compared to the same quarter last year. Analysts forecast that Advanced Micro Devices, Inc. will post 6.43 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the transaction, the executive vice president owned 160,979 shares in the company, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 25,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total value of $12,669,750.00. Following the completion of the sale, the chief executive officer directly owned 74,211 shares in the company, valued at approximately $37,609,392.69. This represents a 25.20% 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 have sold 213,838 shares of company stock valued at $105,533,836 over the last three months. Insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors have recently bought and sold shares of the business. Artemis Investment Management LLP increased its holdings in shares of Advanced Micro Devices by 18.3% in the third quarter. Artemis Investment Management LLP now owns 213,096 shares of the semiconductor manufacturer's stock valued at $130,364,000 after purchasing an additional 32,954 shares during the last quarter. Aletheian Wealth Advisors LLC lifted its stake in shares of Advanced Micro Devices by 28.6% during the 3rd quarter. Aletheian Wealth Advisors LLC now owns 1,692 shares of the semiconductor manufacturer's stock worth $1,035,000 after buying an additional 376 shares during the last quarter. YHB Investment Advisors Inc. boosted its holdings in shares of Advanced Micro Devices by 97.3% during the 3rd quarter. YHB Investment Advisors Inc. now owns 2,803 shares of the semiconductor manufacturer's stock worth $1,715,000 after buying an additional 1,382 shares during the period. Apella Capital LLC boosted its holdings in shares of Advanced Micro Devices by 15.6% during the 3rd quarter. Apella Capital LLC now owns 9,851 shares of the semiconductor manufacturer's stock worth $6,362,000 after buying an additional 1,327 shares during the period. Finally, Everhart Financial Group Inc. grew its stake in Advanced Micro Devices by 8.9% in the 3rd quarter. Everhart Financial Group Inc. now owns 19,821 shares of the semiconductor manufacturer's stock valued at $12,451,000 after buying an additional 1,612 shares during the last quarter. 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 semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD's product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.

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