Advanced Micro Devices (NASDAQ:AMD) Trading Down 10.9% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 10.9% during mid-day trading on Friday . The stock traded as low as $463.95 and last traded at $466.38. Approximately 46,318,234 shares were traded during mid-day trading, an increase of 20% from the average daily volume of 38,590,426 shares. The stock had previously closed at $523.20.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Analysts remain constructive on AMD’s long-term AI growth story, with recent firm price targets well above current levels, including bullish calls from Barclays, TD Cowen, and Mizuho. CPU Demand Rapidly Rising Amid Expanding Agentic AI, Says Barclays, Raises PT On Advanced Micro (AMD) To $665
• Positive Sentiment: AMD’s latest quarterly results were strong, with revenue up 37.8% year over year and earnings topping expectations, reinforcing the company’s fundamental growth momentum. Advanced Micro Devices Price Performance
• Positive Sentiment: Some market commentary continues to highlight AMD as a major beneficiary of AI infrastructure spending, especially as demand for CPUs and AI servers expands. Forget GPUs: AMD, NVDA, INTC, ARM Are Chasing AI’s Next Big Prize — The $120B CPU Market
• Neutral Sentiment: AMD remains one of the most watched semiconductor names, so heightened investor attention may be amplifying volatility around the stock. Advanced Micro Devices, Inc. (AMD) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Comments from TSMC suggesting AI chip supply will stay tight for years support the broader chip demand backdrop, but also underscore that the sector is still operating under capacity constraints. TSMC CEO Warns Chip Supply Won’t Meet AI-Fueled Demand for Years
• Negative Sentiment: AMD is being dragged down by the broader chip rout after Broadcom’s earnings and AI guidance failed to meet elevated expectations, prompting a reassessment of the AI trade. Intel, AMD stocks slide again in aftermath of Broadcom’s weak outlook
• Negative Sentiment: Several reports say AMD has fallen alongside other major semiconductor names as investors lock in profits after a strong run in AI-related stocks. AMD, Broadcom, Quantinuum, and More Stocks That Explain Today’s Market
• Negative Sentiment: AMD’s recent surge has also left some investors worried about valuation, with commentary suggesting the stock may have gotten ahead of near-term fundamentals. Advanced Micro Devices (AMD) Stock Surges on Analyst Upgrades — But Valuation Concerns Linger

Wall Street Analyst Weigh In

AMD has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their price objective on Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Wells Fargo & Company boosted their price target on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Sanford C. Bernstein upgraded shares of Advanced Micro Devices from a “market perform” rating to an “outperform” rating and boosted their price target for the stock from $265.00 to $525.00 in a research note on Wednesday, May 6th. Rosenblatt Securities boosted their price target on shares of Advanced Micro Devices from $300.00 to $490.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Wedbush lifted their price objective on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the company an “outperform” rating in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $419.86.

Advanced Micro Devices Stock Down 10.9%

The business’s 50 day moving average is $358.36 and its 200-day moving average is $264.99. 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 company has a market cap of $760.48 billion, a PE ratio of 152.91, a P/E/G ratio of 1.37 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the previous year, the firm earned $0.96 earnings per share. The firm’s quarterly revenue was up 37.8% on a year-over-year basis. As a group, analysts predict that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the transaction, the executive vice president directly owned 105,222 shares in the company, valued at $46,759,604.58. This represents a 18.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This represents a 3.97% decrease in their ownership of the stock. 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 339,532 shares of company stock valued at $119,504,341 over the last ninety days. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds have recently added to or reduced their stakes in AMD. Norges Bank acquired a new stake in shares of Advanced Micro Devices during the fourth quarter worth about $4,929,312,000. Jennison Associates LLC increased its position in shares of Advanced Micro Devices by 181.6% during the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after purchasing an additional 7,035,991 shares in the last quarter. Cardano Risk Management B.V. purchased a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $1,000,783,000. Wellington Management Group LLP lifted its stake in Advanced Micro Devices by 335.9% in the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock valued at $784,330,000 after buying an additional 3,735,807 shares during the last quarter. Finally, Franklin Resources Inc. lifted its stake in Advanced Micro Devices by 340.1% in the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $1,016,796,000 after buying an additional 3,669,054 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.