Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.7% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD) dropped 1.7% during mid-day trading on Wednesday . The stock traded as low as $486.66 and last traded at $495.54. Approximately 27,239,117 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 39,045,230 shares. The stock had previously closed at $503.89.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD’s data center business is still the main growth engine, with Q1 data center revenue up 57% to $5.78 billion as EPYC CPUs and Instinct AI accelerators gain traction. That supports the case for more upside if AI spending keeps expanding. Article Title
• Positive Sentiment: New AI infrastructure wins are reinforcing AMD’s growth story, including OneQode’s rollout of AMD Instinct MI355X GPUs and plans to use AMD’s Helios rack-scale platform. Article Title
• Positive Sentiment: Several market commentaries argue AMD remains a major beneficiary of the AI build-out, with analysts and investors pointing to further upside potential and continued strength in the chip cycle. Article Title
• Neutral Sentiment: AMD remains widely viewed favorably by Wall Street, with recent analyst coverage showing a “Moderate Buy” consensus and multiple bullish price targets, including a fresh $579 target from Evercore ISI. Article Title
• Negative Sentiment: Competition is intensifying, as Nvidia is moving toward the standalone server CPU market, which could pressure AMD’s long-term share in data center chips. Article Title
• Negative Sentiment: Some investors are cautioning that AMD’s stock has run far ahead of fundamentals after a huge rally, making valuation a key risk even if AI demand stays strong. Article Title

Wall Street Analyst Weigh In

AMD has been the topic of several research reports. JPMorgan Chase & Co. raised their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Roth Mkm restated a “buy” rating and set a $500.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. Citigroup raised their price objective on shares of Advanced Micro Devices from $358.00 to $460.00 and gave the company a “neutral” rating in a research report on Monday, May 18th. Benchmark raised their price objective on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Finally, KeyCorp raised their price objective on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, Advanced Micro Devices presently has a consensus rating of “Moderate Buy” and an average price target of $410.00.

Advanced Micro Devices Stock Performance

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The company’s fifty day moving average is $309.03 and its 200 day moving average is $250.05. The company has a market cap of $808.03 billion, a P/E ratio of 162.47, a price-to-earnings-growth ratio of 1.37 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter last year, the firm earned $0.96 EPS. The firm’s quarterly revenue was up 37.8% compared to the same quarter last year. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction on 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 transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the transaction, the executive vice president directly owned 1,236,037 shares in the company, valued at approximately $432,612,950. This represents a 2.47% 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 sold a total of 329,085 shares of company stock worth $114,051,007 in the last quarter. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of large investors have recently added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd grew its holdings in Advanced Micro Devices by 12.8% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock worth $43,000 after acquiring an additional 24 shares during the last quarter. CLG LLC grew its holdings in Advanced Micro Devices by 3.1% in the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock worth $205,000 after acquiring an additional 30 shares during the last quarter. Columbia Bank grew its holdings in Advanced Micro Devices by 0.7% in the 1st quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock worth $1,055,000 after acquiring an additional 34 shares during the last quarter. Evolution Wealth Management Inc. grew its holdings in Advanced Micro Devices by 11.0% in the 1st quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock worth $72,000 after acquiring an additional 35 shares during the last quarter. Finally, Focused Wealth Management Inc grew its holdings in Advanced Micro Devices by 2.7% in the 1st quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock worth $291,000 after acquiring an additional 37 shares during the last quarter. 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.