Advanced Micro Devices (NASDAQ:AMD) Trading Down 7.3% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD) was down 7.3% on Tuesday . The stock traded as low as $507.25 and last traded at $507.29. Approximately 28,099,947 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 38,054,625 shares. The stock had previously closed at $547.26.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD announced a definitive agreement with Rackspace Technology to deploy an initial 30 MW of AMD-based AI compute across Rackspace data centers, a sign that AMD is expanding deeper into enterprise AI infrastructure and could drive more chip demand. Article Title
• Positive Sentiment: AMD’s recent MEXT acquisition is being viewed as a strategic move to address AI memory bottlenecks, reinforcing the company’s AI roadmap and supporting bullish sentiment around future product performance. Article Title
• Positive Sentiment: Analysts remain constructive, with recent buy/overweight ratings and higher price targets highlighting expectations for stronger GPU and CPU sales as AI demand broadens. Article Title
• Neutral Sentiment: ARK Invest trimmed its AMD position, but the move appears portfolio-driven rather than a direct change in AMD’s fundamentals, as Cathie Wood redirected capital toward SpaceX. Article Title
• Neutral Sentiment: Some commentary is turning cautious, with one Seeking Alpha piece warning AMD may be “precariously close to the cliff,” reflecting valuation concerns after a big run. Article Title
• Negative Sentiment: Profit-taking appears to be weighing on AMD after a sharp rally, with traders rotating out of the stock despite ongoing AI optimism. Article Title
• Negative Sentiment: Insider-trading data showing repeated executive sales over the past six months may also be adding pressure to investor sentiment. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on AMD shares. Northland Securities reiterated a “market perform” rating and issued a $260.00 price objective on shares of Advanced Micro Devices in a report on Monday, April 27th. JPMorgan Chase & Co. increased their price objective on Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Piper Sandler reiterated an “overweight” rating on shares of Advanced Micro Devices in a report on Wednesday, February 25th. Jefferies Financial Group cut Advanced Micro Devices from a “buy” rating to a “hold” rating in a report on Wednesday, May 6th. Finally, DA Davidson increased their price objective on Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $428.65.

Advanced Micro Devices Trading Down 7.2%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The company has a market cap of $828.31 billion, a P/E ratio of 166.55, a price-to-earnings-growth ratio of 1.50 and a beta of 2.50. The stock has a 50-day moving average of $393.01 and a two-hundred day moving average of $277.00.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates 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 company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same quarter last year, the company earned $0.96 EPS. The firm’s revenue for the quarter was up 37.8% on a year-over-year basis. On average, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices 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 completion of the sale, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This trade represents a 9.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer directly owned 2,896,899 shares of the company’s stock, valued at approximately $1,334,572,400.31. The trade was a 4.14% 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. Insiders have sold 372,032 shares of company stock worth $158,658,616 over the last quarter. 0.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently modified their holdings of the company. Lombard Odier Asset Management Europe Ltd boosted its stake in shares of Advanced Micro Devices by 31.4% in the 1st quarter. Lombard Odier Asset Management Europe Ltd now owns 90,469 shares of the semiconductor manufacturer’s stock worth $18,404,000 after buying an additional 21,615 shares during the last quarter. Militia Capital Management LLC purchased a new position in shares of Advanced Micro Devices in the 1st quarter worth $2,848,000. E Wealth Partners LLC boosted its stake in shares of Advanced Micro Devices by 1.6% in the 1st quarter. E Wealth Partners LLC now owns 2,591 shares of the semiconductor manufacturer’s stock worth $527,000 after buying an additional 40 shares during the last quarter. FAS Wealth Partners Inc. boosted its stake in shares of Advanced Micro Devices by 10.2% in the 1st quarter. FAS Wealth Partners Inc. now owns 1,982 shares of the semiconductor manufacturer’s stock worth $403,000 after buying an additional 184 shares during the last quarter. Finally, Rathbones Group PLC boosted its stake in shares of Advanced Micro Devices by 3.1% in the 1st quarter. Rathbones Group PLC now owns 20,955 shares of the semiconductor manufacturer’s stock worth $4,263,000 after buying an additional 634 shares during the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

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.