Advanced Micro Devices (NASDAQ:AMD) Shares Down 3.6% After Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded down 3.6% during mid-day trading on Thursday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $499.87 and last traded at $523.20. 28,917,141 shares changed hands during trading, a decline of 25% from the average session volume of 38,518,813 shares. The stock had previously closed at $542.52.

A number of other analysts have also recently issued reports on AMD. BTIG Research upgraded shares of Advanced Micro Devices to a “buy” rating in a research note on Wednesday, May 6th. Susquehanna boosted their price target on Advanced Micro Devices from $375.00 to $450.00 and gave the company a “positive” rating in a research report on Wednesday, May 6th. Barclays increased their price objective on Advanced Micro Devices from $500.00 to $665.00 and gave the stock an “overweight” rating in a research report on Monday. Weiss Ratings raised Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, May 6th. Finally, Bank of America upped their price target on Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average price target of $419.86.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 31,320 shares of the firm’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the transaction, the executive vice president directly owned 1,236,037 shares of the company’s stock, valued at $432,612,950. This trade represents a 2.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the sale, the director directly owned 87,173 shares in the company, valued at approximately $45,504,306. The trade was a 9.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 339,532 shares of company stock valued at $119,504,341 in the last quarter. 0.50% of the stock is owned by corporate insiders.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Analysts remain constructive on AMD’s long-term AI growth story, with recent firm price targets well above current levels, including bullish calls from Barclays, TD Cowen, and Mizuho. CPU Demand Rapidly Rising Amid Expanding Agentic AI, Says Barclays, Raises PT On Advanced Micro (AMD) To $665
• Positive Sentiment: AMD’s latest quarterly results were strong, with revenue up 37.8% year over year and earnings topping expectations, reinforcing the company’s fundamental growth momentum. Advanced Micro Devices Price Performance
• Positive Sentiment: Some market commentary continues to highlight AMD as a major beneficiary of AI infrastructure spending, especially as demand for CPUs and AI servers expands. Forget GPUs: AMD, NVDA, INTC, ARM Are Chasing AI’s Next Big Prize — The $120B CPU Market
• Neutral Sentiment: AMD remains one of the most watched semiconductor names, so heightened investor attention may be amplifying volatility around the stock. Advanced Micro Devices, Inc. (AMD) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Comments from TSMC suggesting AI chip supply will stay tight for years support the broader chip demand backdrop, but also underscore that the sector is still operating under capacity constraints. TSMC CEO Warns Chip Supply Won’t Meet AI-Fueled Demand for Years
• Negative Sentiment: AMD is being dragged down by the broader chip rout after Broadcom’s earnings and AI guidance failed to meet elevated expectations, prompting a reassessment of the AI trade. Intel, AMD stocks slide again in aftermath of Broadcom’s weak outlook
• Negative Sentiment: Several reports say AMD has fallen alongside other major semiconductor names as investors lock in profits after a strong run in AI-related stocks. AMD, Broadcom, Quantinuum, and More Stocks That Explain Today’s Market
• Negative Sentiment: AMD’s recent surge has also left some investors worried about valuation, with commentary suggesting the stock may have gotten ahead of near-term fundamentals. Advanced Micro Devices (AMD) Stock Surges on Analyst Upgrades — But Valuation Concerns Linger

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently bought and sold shares of the company. Joseph Group Capital Management purchased a new position in shares of Advanced Micro Devices during the 4th quarter worth about $25,000. Koesten Hirschmann & Crabtree INC. increased its position in Advanced Micro Devices by 61.0% during the third quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors acquired a new position in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Cornerstone Financial Management LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Finally, Basepoint Wealth LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth approximately $30,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Stock Performance

The stock’s fifty day simple moving average is $358.36 and its two-hundred day simple moving average is $264.99. The company has a market cap of $760.48 billion, a price-to-earnings ratio of 152.91, a price-to-earnings-growth ratio of 1.54 and a beta of 2.50. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same period last year, the company posted $0.96 EPS. The business’s quarterly revenue was up 37.8% on a year-over-year basis. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

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.