Advanced Micro Devices (NASDAQ:AMD) Shares Down 6.1% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price dropped 6.1% during mid-day trading on Friday . The company traded as low as $234.55 and last traded at $236.73. 39,471,101 shares changed hands during trading, an increase of 4% from the average daily volume of 37,950,848 shares. The stock had previously closed at $252.18.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Wells Fargo reiterated an “overweight” rating and publicly pushed back on reports of MI‑series delays, issuing a $345 price target — a clear buy‑on‑weakness signal that supports upside if delay fears fade. Wells Fargo refutes delay claims
• Positive Sentiment: High‑profile endorsement: Jim Cramer lauded AMD’s execution and CEO performance, which can help sentiment and attract momentum buyers. Cramer praises AMD CEO
• Positive Sentiment: Analyst support: Susquehanna and other firms continue to highlight strengthening AI/data‑center momentum and have reiterated Buy ratings with elevated targets (e.g., $300), bolstering medium‑term upside expectations. Susquehanna reiterates Buy
• Neutral Sentiment: Microsoft signaled it will continue buying AI chips from vendors like AMD even as it rolls out its own silicon, which reduces a structural risk but is not an immediate revenue catalyst. Microsoft comment on AI chips
• Neutral Sentiment: Options flow and large trades show active positioning around earnings and product launches — useful for short‑term volatility but not definitive on direction. Options activity on AMD
• Neutral Sentiment: Broader market lists (e.g., “5 Stocks to Buy in February”) include AMD as a momentum candidate, reflecting positive thematic support but not immediate price drivers. MarketBeat buy list
• Negative Sentiment: Conflicting reports (SemiAnalysis cited by multiple outlets) suggest potential delays to AMD’s MI‑series AI accelerators; such timing uncertainty is the primary near‑term catalyst for the share pullback. Reports of AI chip delays
• Negative Sentiment: Valuation concerns: several analysts/commentators argue AMD’s rally already prices in large AI/data‑center wins and the stock looks expensive relative to near‑term deliverables, prompting profit‑taking. Valuation critique
• Negative Sentiment: Broad market weakness and sector rotation amplified the decline today — not unique to AMD but important for short‑term downside pressure. Market sell-off context

Analysts Set New Price Targets

A number of research analysts recently issued reports on AMD shares. Citigroup reiterated a “neutral” rating on shares of Advanced Micro Devices in a research report on Thursday, January 15th. UBS Group lifted their price target on shares of Advanced Micro Devices from $300.00 to $330.00 and gave the company a “buy” rating in a research note on Monday. Evercore ISI upped their price objective on shares of Advanced Micro Devices from $270.00 to $283.00 and gave the company an “outperform” rating in a report on Wednesday, November 12th. The Goldman Sachs Group lifted their price target on shares of Advanced Micro Devices from $150.00 to $210.00 and gave the company a “neutral” rating in a research report on Wednesday, October 8th. Finally, China Renaissance began coverage on Advanced Micro Devices in a report on Tuesday, January 13th. They issued a “buy” rating and a $291.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $281.06.

Advanced Micro Devices Price Performance

The company has a current ratio of 2.31, a quick ratio of 1.68 and a debt-to-equity ratio of 0.04. The stock has a market cap of $385.41 billion, a PE ratio of 117.19, a PEG ratio of 1.05 and a beta of 1.95. The business has a 50-day moving average price of $220.82 and a 200 day moving average price of $201.51.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, November 4th. The semiconductor manufacturer reported $1.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.03. The business had revenue of $9.25 billion for the quarter, compared to analysts’ expectations of $8.76 billion. Advanced Micro Devices had a return on equity of 8.04% and a net margin of 10.32%.The firm’s quarterly revenue was up 35.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.92 EPS. As a group, research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $215.14, for a total transaction of $26,892,500.00. Following the sale, the chief executive officer directly owned 3,277,476 shares in the company, valued at approximately $705,116,186.64. The trade was a 3.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Forrest Eugene Norrod sold 19,450 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $229.37, for a total transaction of $4,461,246.50. Following the completion of the transaction, the executive vice president owned 300,348 shares of the company’s stock, valued at $68,890,820.76. This trade represents a 6.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 164,000 shares of company stock worth $36,034,173. 0.06% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at about $25,000. ORG Wealth Partners LLC increased its stake in Advanced Micro Devices by 39.7% in the third quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 46 shares during the last quarter. Koesten Hirschmann & Crabtree INC. raised its holdings in shares of Advanced Micro Devices by 61.0% during the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 61 shares in the last quarter. Pinney & Scofield Inc. raised its stake in shares of Advanced Micro Devices by 81.0% during the second quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer’s stock worth $27,000 after acquiring an additional 85 shares in the last quarter. Finally, Avion Wealth raised its position in Advanced Micro Devices by 49.3% in the 2nd quarter. Avion Wealth now owns 218 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 72 shares during the period. 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.