Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.2% – Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was down 1.2% on Friday . The company traded as low as $476.06 and last traded at $483.36. 26,426,925 shares changed hands during trading, a decline of 27% from the average session volume of 36,159,789 shares. The stock had previously closed at $489.28.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD agreed to acquire Toronto-based AI-inference chip startup Taalas for an undisclosed amount. Taalas develops specialized silicon designed to reduce computing and memory bottlenecks, and AMD plans to integrate the technology with its Instinct GPUs. The deal could improve AMD’s inference performance and strengthen its challenge to Nvidia in a rapidly expanding market. AMD deepens AI inference bet with Taalas deal as chip race heats up
• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, and adjusted earnings of $1.66 per share, exceeding consensus estimates. Data Center revenue more than doubled, while management raised its outlook, reinforcing the long-term AI growth case. AMD tops Q2 earnings estimates and provides strong outlook
• Positive Sentiment: Several analysts remain constructive: Rosenblatt raised its price target to $700 with a buy rating, while JPMorgan lifted its target to $550 but retained a neutral rating. Recent institutional filings also showed sizable increases in AMD holdings by PNC Financial and GF Fund Management. AMD analyst price-target changes
• Neutral Sentiment: Investors continue to debate whether AMD can become a major Nvidia alternative. Optimistic views point to data-center demand, AI deployments and supply leverage, but the stock’s high valuation means additional upside likely requires sustained execution and accelerating growth. This Could Be One of the Best Opportunities to Buy AMD Stock in Months
• Negative Sentiment: AMD’s results and guidance, although strong, did not clear an exceptionally high AI-growth bar. Investors wanted stronger evidence of accelerating AI revenue, higher margins and a faster path to closing Nvidia’s competitive lead. Why AMD’s solid quarterly earnings failed to impress investors
• Negative Sentiment: Near-term concerns include slowing growth in AMD’s client and gaming businesses and intensifying Nvidia competition. SpaceX’s selection of Nvidia rather than AMD for an AI-chip partnership further underscored concerns about Nvidia’s customer and ecosystem advantages. AMD stock falls after record quarter as SpaceX picks Nvidia
• Negative Sentiment: At roughly 124 times earnings, AMD leaves little room for disappointment. The combination of lofty expectations, post-earnings profit-taking and increased short interest contributed to the weaker investor reaction despite the earnings beat. AMD short volume hits a two-week high

Analysts Set New Price Targets

AMD has been the subject of several recent analyst reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of Advanced Micro Devices in a research note on Monday, August 3rd. HSBC lowered shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and upped their target price for the stock from $335.00 to $340.00 in a research report on Monday, May 4th. Wells Fargo & Company increased their target price on shares of Advanced Micro Devices from $615.00 to $700.00 and gave the company an “overweight” rating in a report on Wednesday. Mizuho lifted their price target on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the company an “outperform” rating in a research report on Monday, July 27th. Finally, Wedbush reissued an “outperform” rating and set a $600.00 price target on shares of Advanced Micro Devices in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $546.87.

Advanced Micro Devices Stock Down 1.2%

The firm’s fifty day simple moving average is $514.56 and its 200-day simple moving average is $359.10. The company has a market cap of $789.07 billion, a PE ratio of 124.26 and a beta of 2.48. The company has a quick ratio of 1.96, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping 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 business had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same period last year, the company posted $0.48 EPS. The company’s revenue was up 50.1% on a year-over-year basis. As a group, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Nora Denzel sold 8,626 shares of the company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the sale, the director directly owned 87,173 shares in the company, valued at $45,504,306. This represents a 9.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the sale, the executive vice president directly owned 324,527 shares in the company, valued at approximately $140,000,947.80. The trade was a 5.66% 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 sold 285,934 shares of company stock worth $130,353,006. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Norges Bank acquired a new position in shares of Advanced Micro Devices during the 4th quarter valued at about $4,929,312,000. Jennison Associates LLC boosted its position in shares of Advanced Micro Devices by 181.6% in the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after acquiring an additional 7,035,991 shares during the last quarter. Cardano Risk Management B.V. purchased a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $1,000,783,000. BlackRock Inc. grew its holdings in Advanced Micro Devices by 3.1% in the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. Finally, Wellington Management Group LLP increased its position in Advanced Micro Devices by 335.9% during the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock worth $784,330,000 after purchasing an additional 3,735,807 shares during the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

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.