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 Tuesday . The stock had previously closed at $552.05, but opened at $515.91. Advanced Micro Devices shares last traded at $513.8520, with a volume of 4,789,482 shares.

More Advanced Micro Devices News

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

• Positive Sentiment: Wall Street analysts remain constructive on AMD, with Goldman Sachs and Wells Fargo recently raising price targets on expectations for strong server CPU demand, pricing power, and continued AI-related growth. AMD, Nvidia, Micron, Oracle, Dell, Intel, and More Stocks That Explain Today’s Market
• Positive Sentiment: AMD also gained a new AI-use-case catalyst after Turing said it is adopting AMD GPUs for part of its self-driving AI training, which expands AMD beyond data centers and gaming into autonomous vehicles. AMD Gains AI Customer as $600 Million Self-Driving Startup Adopts Its GPUs
• Neutral Sentiment: Recent articles also highlighted AMD’s rapid share-price gains and its approach toward a possible $1 trillion valuation, but these pieces were mostly commentary on momentum rather than new fundamental news. AMD Is 11% Away From Joining the $1 Trillion Club. Could It Get There This Year?
• Negative Sentiment: The main drag today is a broader chip-stock selloff, with AMD falling alongside peers like Nvidia and Intel as investors worry the AI rally is stalling and trading sentiment in semiconductors turns risk-off. Intel and Applied Materials Dive 10%, AMD Craters 8% as Samsung Earnings Trigger Chip Selloff
• Negative Sentiment: Cathie Wood’s ARK Invest sold about $8 million of AMD shares, adding to some near-term caution even as analyst sentiment remains upbeat. AMD Stock: Cathie Wood Sells $8M in AMD Despite Growing Analyst Optimism

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on AMD. Wells Fargo & Company raised their target price on Advanced Micro Devices from $505.00 to $615.00 and gave the company an “overweight” rating in a report on Tuesday, June 30th. DA Davidson upped their price target on Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. KeyCorp raised their price objective on Advanced Micro Devices from $330.00 to $530.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Zacks Research downgraded shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Finally, Northland Securities reiterated a “market perform” rating and issued a $260.00 target price on shares of Advanced Micro Devices in a research note on Monday, April 27th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $453.92.

Advanced Micro Devices Stock Down 6.7%

The stock has a fifty day moving average of $470.75 and a 200 day moving average of $308.01. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The firm has a market capitalization of $839.47 billion, a P/E ratio of 168.62, a price-to-earnings-growth ratio of 1.53 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) 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 firm had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the prior year, the company earned $0.96 EPS. The business’s revenue for the quarter was up 37.8% on a year-over-year basis. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 24,376 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the business’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the completion of the transaction, the executive vice president owned 324,527 shares in the company, valued at approximately $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 374,739 shares of company stock valued at $161,135,671 in the last 90 days. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Large investors have recently added to or reduced their stakes in the company. Joseph Group Capital Management bought a new position in Advanced Micro Devices during the fourth quarter worth about $25,000. Sarver Vrooman Wealth Advisors bought a new position in Advanced Micro Devices in the 4th quarter worth about $27,000. Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices during the fourth quarter valued at about $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth about $30,000. Finally, Graney & King LLC bought a new position in shares of Advanced Micro Devices in the first quarter valued at approximately $31,000. Hedge funds and other institutional investors own 71.34% of the company’s stock.

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.