Advanced Micro Devices (NASDAQ:AMD) Shares Gap Down – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares gapped down before the market opened on Wednesday . The stock had previously closed at $518.58, but opened at $484.50. Advanced Micro Devices shares last traded at $494.00, with a volume of 14,178,635 shares.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD agreed to acquire Taalas, a startup developing specialized AI inference chips that hardwire models into silicon. AMD plans to integrate Taalas’ technology with its Instinct GPUs, potentially improving inference speed and efficiency and strengthening its position against Nvidia. AMD deepens AI inference bet with Taalas deal
• Positive Sentiment: GF Fund Management disclosed an addition of approximately 289,041 AMD shares, estimated at $167.9 million, increasing its position by about 88%. Although the filing reflects holdings as of June 30, the disclosure provides a supportive institutional ownership signal. GF Fund Management new holdings
• Positive Sentiment: Analyst sentiment remains broadly favorable. Rosenblatt raised its target to $700 with a Buy rating, while Wedbush and Cantor Fitzgerald maintained bullish ratings with targets of $600 and $700, respectively. JPMorgan also raised its target sharply to $550, though it retained a Neutral rating. AMD analyst price-target updates
• Positive Sentiment: AMD’s latest quarter showed revenue of $11.54 billion, up 50% year over year, with data-center revenue more than doubling to approximately $6.7 billion. Management expects data-center revenue to accelerate later this year and more than double again in 2027 as its Helios AI platform ramps. AMD Q2 earnings and data-center growth

Analyst Upgrades and Downgrades

Several research firms have commented on AMD. Seaport Research Partners raised shares of Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 target price on the stock in a report on Wednesday, May 6th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $540.00 price target on shares of Advanced Micro Devices in a report on Wednesday. JPMorgan Chase & Co. increased their price target on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a research report on Wednesday. Sanford C. Bernstein reissued an “outperform” rating and issued a $650.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday. Finally, KeyCorp set a $650.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $546.87.

Advanced Micro Devices Trading Down 0.6%

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.96 and a current ratio of 2.61. The firm has a market cap of $793.41 billion, a price-to-earnings ratio of 125.55 and a beta of 2.48. The business has a fifty day simple moving average of $515.22 and a 200-day simple moving average of $358.23.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business’s revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the firm posted $0.48 earnings per share. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

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, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the transaction, the chief executive officer directly owned 2,896,899 shares in the company, valued at approximately $1,334,572,400.31. This represents a 4.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the transaction, the director directly owned 87,173 shares of the company’s stock, valued at $45,504,306. The trade was a 9.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 285,934 shares of company stock valued at $130,353,006 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Joseph Group Capital Management bought a new position in shares of Advanced Micro Devices during the fourth quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $27,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $27,000. Basepoint Wealth LLC bought a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $30,000. Finally, Graney & King LLC acquired a new stake in shares of Advanced Micro Devices during the first quarter worth $31,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.