Advanced Micro Devices (NASDAQ:AMD) Trading Down 3% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares dropped 3% on Tuesday . The stock traded as low as $437.23 and last traded at $475.51. Approximately 37,365,453 shares traded hands during trading, a decline of 3% from the average daily volume of 38,462,297 shares. The stock had previously closed at $490.33.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Bank of America raised its price target on AMD to $560 from $500 and reiterated a buy rating, calling AMD a “top CPU pick” and citing strong potential from agentic AI demand and server-CPU growth. AMD Stock Rises as BofA Lifts Price Target, Calls it ‘Top CPU Pick’
• Positive Sentiment: Reports that AMD’s next-generation Zen 6 CPUs could reach 6.5 GHz added to enthusiasm around its product roadmap and competitive position in client and server chips. AMD Stock Soars as Leaks Point to 6.5 GHz Zen 6 CPU Speeds
• Positive Sentiment: Multiple notes highlighted AMD as a beneficiary of accelerating AI infrastructure spending, especially from rising agentic AI workloads that should lift demand for CPUs and accelerators. Rising Agentic AI Workloads Expected to Boost Demand for CPUs, BofA Says
• Neutral Sentiment: Several analyst updates remained constructive, with Erste Group lifting FY2026 and FY2027 earnings estimates for AMD, reinforcing expectations for continued profit growth. Analyst earnings estimate update
• Negative Sentiment: Some coverage warned that AMD’s rapid run-up has pushed valuations high, with one report arguing the stock may be a “dangerous buy” above $475 and that investors are becoming more selective on AI names. Up 129% Year-to-Date: 1 Flashing Red Light That Makes AMD Stock a Dangerous Buy Above $475
• Negative Sentiment: AMD was also mentioned in broader semiconductor weakness and retail selling of AI winners, which can add near-term pressure even when the long-term story remains intact. Retail Is Cashing Out Of Micron, AMD, AI Stocks Ahead Of SpaceX IPO

Wall Street Analyst Weigh In

AMD has been the subject of several research reports. Stifel Nicolaus boosted their price objective on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Susquehanna boosted their target price on shares of Advanced Micro Devices from $375.00 to $450.00 and gave the company a “positive” rating in a research report on Wednesday, May 6th. Citigroup boosted their target price on shares of Advanced Micro Devices from $358.00 to $460.00 and gave the company a “neutral” rating in a research report on Monday, May 18th. Oppenheimer lowered shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a research report on Wednesday, May 6th. Finally, KeyCorp boosted their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $421.49.

Advanced Micro Devices Trading Up 8.0%

The firm has a market capitalization of $796.47 billion, a P/E ratio of 160.15, a price-to-earnings-growth ratio of 1.40 and a beta of 2.50. The stock’s 50-day simple moving average is $374.69 and its two-hundred day simple moving average is $270.50. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly 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. The business 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 company’s revenue was up 37.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.96 earnings per share. Equities research analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total value of $55,688,750.00. Following the completion of the transaction, the chief executive officer directly owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This represents a 3.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 247,032 shares of company stock valued at $101,072,366. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. FAS Wealth Partners Inc. boosted its position in shares of Advanced Micro Devices by 10.2% during the first quarter. FAS Wealth Partners Inc. now owns 1,982 shares of the semiconductor manufacturer’s stock worth $403,000 after acquiring an additional 184 shares during the last quarter. Rathbones Group PLC boosted its position in shares of Advanced Micro Devices by 3.1% during the first quarter. Rathbones Group PLC now owns 20,955 shares of the semiconductor manufacturer’s stock worth $4,263,000 after acquiring an additional 634 shares during the last quarter. Pine Valley Investments Ltd Liability Co boosted its position in shares of Advanced Micro Devices by 6.0% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 7,453 shares of the semiconductor manufacturer’s stock worth $1,516,000 after acquiring an additional 419 shares during the last quarter. Farmers National Bank boosted its position in shares of Advanced Micro Devices by 14.7% during the first quarter. Farmers National Bank now owns 2,310 shares of the semiconductor manufacturer’s stock worth $470,000 after acquiring an additional 296 shares during the last quarter. Finally, Stillwater Private Wealth LLC bought a new position in shares of Advanced Micro Devices during the first quarter worth $454,000. Institutional investors 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.