Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 8.1% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 8.1% during trading on Thursday. The company traded as low as $502.60 and last traded at $507.93. Approximately 27,465,379 shares were traded during trading, a decline of 14% from the average daily volume of 31,990,016 shares. The stock had previously closed at $552.72.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD continues to secure long-term AI infrastructure demand. Vultr announced plans to deploy AMD Instinct MI355X GPUs in a new 20-megawatt supercluster in India, while other reports highlighted hyperscaler interest and the company’s strategy to build a broader AI computing stack. Vultr and AMD Expand Global Collaboration with New AI Infrastructure in India
• Positive Sentiment: Susquehanna raised its AMD price target to $620 from $550 and maintained a positive rating. Wedbush also reaffirmed its Outperform rating, reflecting continued confidence in server CPU demand and AI growth. Susquehanna AMD price target update
• Neutral Sentiment: ETFs reportedly purchased approximately $185.9 million of AMD shares on Tuesday, potentially providing technical support, although broader fund flows remain sensitive to the market-wide retreat from AI and semiconductor stocks. ETFs Bought $185.9 Million of AMD
• Negative Sentiment: A supply warning from a semiconductor-equipment company intensified concerns about chip availability and pressured AMD and other data-center chipmakers. Softer PC market conditions added to the selling. Chip Stocks Fall as Supply Warning Deepens AI Selloff
• Negative Sentiment: Nvidia’s push into standalone CPUs and agentic-AI systems creates a new competitive threat in a market historically led by AMD and Intel. Nvidia Enters the CPU Market
• Negative Sentiment: Investors are questioning whether AI capital spending will generate adequate returns. With AMD’s stock priced for substantial future growth, concerns about valuation and profit-taking are amplifying the decline. Reports also noted that AMD insiders have made numerous sales without reported open-market purchases in recent months.

Analyst Ratings Changes

Several analysts recently weighed in on AMD shares. Cantor Fitzgerald restated an “overweight” rating on shares of Advanced Micro Devices in a research note on Monday, October 5th. CLSA reaffirmed an “outperform” rating and set a $710.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, September 9th. Bank of America increased their target price on shares of Advanced Micro Devices from $620.00 to $720.00 and gave the stock a “buy” rating in a research report on Friday, September 25th. UBS Group reiterated an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. Finally, JPMorgan Chase & Co. upped their target price on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $606.76.

Advanced Micro Devices Trading Down 8.1%

The business has a 50 day simple moving average of $541.49 and a 200-day simple moving average of $483.21. The stock has a market capitalization of $829.18 billion, a price-to-earnings ratio of 130.57, a PEG ratio of 5.49 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm’s revenue was up 50.1% compared to the same quarter last year. During the same period last year, the company earned $0.48 earnings per share. As a group, equities analysts expect that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Forrest Norrod sold 17,262 shares of the firm’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the sale, the executive vice president owned 353,317 shares in the company, valued at approximately $191,038,501.90. This trade represents a 4.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 70,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the sale, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at approximately $1,536,696,660.80. The trade was a 2.26% 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. Over the last three months, insiders sold 231,100 shares of company stock valued at $114,867,400. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. MLP3 LLC purchased a new stake in Advanced Micro Devices in the third quarter worth about $202,000. Boomfish Wealth Group LLC lifted its holdings in shares of Advanced Micro Devices by 2.0% during the third quarter. Boomfish Wealth Group LLC now owns 3,627 shares of the semiconductor manufacturer’s stock valued at $2,219,000 after purchasing an additional 71 shares in the last quarter. MBL Wealth LLC lifted its stake in Advanced Micro Devices by 1.7% during the 3rd quarter. MBL Wealth LLC now owns 10,653 shares of the semiconductor manufacturer’s stock valued at $6,517,000 after acquiring an additional 174 shares during the period. Demars Financial Group LLC boosted its holdings in Advanced Micro Devices by 27.9% in the third quarter. Demars Financial Group LLC now owns 664 shares of the semiconductor manufacturer’s stock worth $406,000 after purchasing an additional 145 shares during the last quarter. Finally, Compass Wealth Management LLC bought a new stake in shares of Advanced Micro Devices in the third quarter worth $124,000. 71.34% of the stock is owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.