Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.3% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 3.3% during trading on Friday . The company traded as low as $518.00 and last traded at $521.95. Approximately 27,047,303 shares traded hands during trading, a decline of 26% from the average daily volume of 36,331,711 shares. The stock had previously closed at $539.69.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD and Cerebras announced a technical partnership to combine Helios and Wafer-Scale Engine technology, aiming for faster, more efficient AI inference and up to 5x higher tokens per second per watt. AMD and Cerebras Announce Industry-Leading Ultra-Low-Latency and High Throughput AI Inference Solution
• Positive Sentiment: Wedbush raised its price target to $600, and several other firms also boosted targets after AMD’s Advancing AI 2026 event, signaling stronger Wall Street confidence in AMD’s AI data center growth. AMD price target boosted on strengthening AI outlook
• Positive Sentiment: Other commentary highlighted AMD’s new Helios AI rack system, expanded OpenAI and Anthropic-related demand, and multiple bullish analyst notes, all of which support the view that AMD is gaining share in AI infrastructure. AMD plans to invest to up $5 billion into Anthropic as it seeks to cut into Nvidia’s dominance
• Neutral Sentiment: Short-interest data showed no meaningful change in practice, with reported short interest listed as zero shares, so this item does not appear to be a real trading catalyst.
• Neutral Sentiment: The broader semiconductor sector pulled back on valuation and profit-taking concerns, which may be weighing on AMD even as company-specific AI news remains constructive. Semiconductor Crossroads: Healthy Consolidation or Deeper Repricing?
• Negative Sentiment: AMD also appeared in reports about an AI-chip selloff and weaker risk appetite, suggesting some investors are taking profits after the stock’s strong run. AI Memory Stocks Lead Chip Selloff

Analysts Set New Price Targets

A number of brokerages recently issued reports on AMD. Weiss Ratings raised Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, May 6th. Evercore reiterated an “outperform” rating and set a $579.00 target price on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. TD Cowen upped their price target on shares of Advanced Micro Devices from $600.00 to $675.00 and gave the stock a “buy” rating in a report on Monday, July 13th. Wells Fargo & Company raised their price target on shares of Advanced Micro Devices from $505.00 to $615.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 30th. Finally, Needham & Company LLC upgraded shares of Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices has an average rating of “Moderate Buy” and an average price target of $522.43.

Advanced Micro Devices Stock Performance

The stock has a market cap of $851.09 billion, a PE ratio of 171.13, a price-to-earnings-growth ratio of 1.51 and a beta of 2.47. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The firm has a 50 day moving average price of $512.60 and a 200 day moving average price of $340.69.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating the consensus estimate 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 period in the previous year, the company posted $0.96 earnings per share. The firm’s quarterly revenue was up 37.8% on a year-over-year basis. As a group, research analysts forecast that Advanced Micro Devices, Inc. will post 6.27 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 24,376 shares of the business’s 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 completion of the transaction, the executive vice president owned 105,222 shares of the company’s stock, valued at $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Nora Denzel sold 8,626 shares of the company’s 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 sale, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This represents a 9.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 310,310 shares of company stock worth $141,185,456. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors have recently added to or reduced their stakes in the stock. Jefferies Financial Group Inc. grew its holdings in shares of Advanced Micro Devices by 6,228.8% in the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after purchasing an additional 303,154 shares during the period. Boomfish Wealth Group LLC purchased a new position in Advanced Micro Devices during the first quarter worth about $1,193,000. Dimensional Fund Advisors LP boosted its holdings in Advanced Micro Devices by 6.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock valued at $1,045,954,000 after purchasing an additional 291,165 shares during the last quarter. Williamson Legacy Group LLC acquired a new position in Advanced Micro Devices in the 4th quarter valued at about $1,118,000. Finally, Thoroughbred Financial Services LLC grew its stake in shares of Advanced Micro Devices by 8.8% in the 4th quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock valued at $7,030,000 after buying an additional 2,654 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.