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

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

Key Advanced Micro Devices News

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

• Positive Sentiment: AI infrastructure demand remains strong. TSMC reported record quarterly revenue, while Samsung also posted exceptionally strong results tied to AI memory demand—supportive read-throughs for AMD’s data-center and accelerator businesses. TSMC quarterly results
• Positive Sentiment: AMD is reportedly exploring a foundry and memory partnership with Samsung, potentially improving access to critical manufacturing and high-bandwidth memory as AI chip supply remains constrained. AMD Samsung partnership
• Positive Sentiment: The partnership with Core Scientific highlights potential demand for AMD-powered AI data centers, while analysts and bullish commentators continue to see upside from CPUs, accelerators and inference chips. Core Scientific and AMD partnership
• Neutral Sentiment: AMD scheduled its third-quarter earnings release for November 3. The report will be an important test of whether accelerating AI demand can justify the stock’s elevated valuation. AMD earnings date
• Negative Sentiment: Valuation concerns are dominating sentiment. AMD was cited as trading near 125 times free cash flow, far above Broadcom’s roughly 46 times, leaving little room for execution missteps or slower growth. AMD versus Broadcom valuation
• Negative Sentiment: A broader market selloff, rising Treasury yields and higher oil prices pressured richly valued technology shares. ARK Invest also sold approximately $14 million of AMD stock, adding a modest negative sentiment signal. ARK Invest AMD sale

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Benchmark boosted their price objective on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a research note on Wednesday, July 22nd. Wall Street Zen upgraded Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Sunday, October 4th. Morgan Stanley boosted their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 5th. Wells Fargo & Company raised their price target on shares of Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. Finally, Barclays downgraded Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research note on Friday, June 12th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $585.26.

Advanced Micro Devices Trading Down 2.0%

The stock has a market capitalization of $992.71 billion, a PE ratio of 156.32, a P/E/G ratio of 6.39 and a beta of 2.45. The firm has a 50 day moving average price of $528.95 and a 200 day moving average price of $459.44. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. Advanced Micro Devices’s quarterly revenue was up 50.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.48 earnings per share. Equities analysts expect that Advanced Micro Devices, Inc. will post 6.48 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,261 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $503.05, for a total value of $8,683,146.05. Following the completion of the sale, the executive vice president directly owned 363,317 shares of the company’s stock, valued at approximately $182,766,616.85. This represents a 4.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the transaction, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. The trade was a 2.23% 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. Over the last 90 days, insiders have sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently made changes to their positions in the stock. First Citizens Financial Corp boosted its holdings in shares of Advanced Micro Devices by 3.4% during the 3rd quarter. First Citizens Financial Corp now owns 490 shares of the semiconductor manufacturer’s stock valued at $300,000 after acquiring an additional 16 shares during the last quarter. Private Client Services LLC lifted its position in Advanced Micro Devices by 1.7% during the third quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock valued at $660,000 after purchasing an additional 18 shares during the period. Box Hill Private Wealth LLC lifted its position in Advanced Micro Devices by 2.5% during the third quarter. Box Hill Private Wealth LLC now owns 794 shares of the semiconductor manufacturer’s stock valued at $486,000 after purchasing an additional 19 shares during the period. Bullock Wealth Management Group boosted its holdings in Advanced Micro Devices by 0.6% in the third quarter. Bullock Wealth Management Group now owns 3,321 shares of the semiconductor manufacturer’s stock worth $2,045,000 after purchasing an additional 20 shares during the last quarter. Finally, Baring Financial LLC grew its position in Advanced Micro Devices by 4.5% in the 3rd quarter. Baring Financial LLC now owns 491 shares of the semiconductor manufacturer’s stock worth $300,000 after purchasing an additional 21 shares during the period. 71.34% of the stock is owned by hedge funds and other institutional investors.

About Advanced Micro Devices

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.