Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 17.3% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price dropped 17.3% on Wednesday . The company traded as low as $199.15 and last traded at $200.19. Approximately 106,113,928 shares traded hands during trading, an increase of 156% from the average daily volume of 41,520,555 shares. The stock had previously closed at $242.11.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD reported a record Q4: revenue of ~$10.3B (+34% YoY), strong data‑center growth and record non‑GAAP EPS of $1.53 — the headline beat supports the long‑term AI/CPU thesis. AMD Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Analysts remain constructive in the wake of results — multiple firms reaffirmed buys and raised price targets, leaving sizable upside in many models, which can underpin a rebound if execution continues. Analyst Reactions & Price Target Moves
• Positive Sentiment: Product pipeline catalysts — MI450 AI accelerator and Helios rack‑scale solutions (launch/ramp expected later this year) give investors a multi‑quarter revenue runway to materially accelerate AI server sales. MI450 AI Accelerator to Power AMD’s 2026 Returns
• Neutral Sentiment: CEO Lisa Su emphasized accelerating AI demand and defended the outlook — helpful for conviction on the medium term, but it didn’t immediately calm traders focused on next‑quarter cadence. Lisa Su on AI demand and guidance
• Neutral Sentiment: Q4 strength included a one‑time component: ~ $390M of MI308 sales to China and a release of prior reserves — this boosts Q4 comparables but raises questions about repeatability. Earnings press release (China/MI308 detail)
• Negative Sentiment: Disappointing near‑term tone: management’s Q1 revenue range and explicit cap (~$100M) on China MI308 sales led investors to reprice near‑term growth expectations and sparked the selloff. That guidance gap, not the beat, was the main driver of weakness. Bloomberg Tech: AMD Forecast Fails to Impress Investors
• Negative Sentiment: Broader market forces — an AI‑sector rotation and new automation tools (Anthropic reports) fueled risk‑off in tech, worsening AMD’s move on top of company‑specific concerns. Bloomberg: tech selloff context
• Negative Sentiment: Other near‑term pressures: reports of planned GPU price increases and spillover into memory/supply chains have knocked peers (e.g., Micron) and add uncertainty to gross‑margin and volume assumptions. GPU price hike reports

Analyst Upgrades and Downgrades

Several research firms recently weighed in on AMD. Truist Financial set a $283.00 price objective on Advanced Micro Devices in a research report on Wednesday. Robert W. Baird set a $300.00 price target on Advanced Micro Devices in a report on Wednesday, November 5th. Roth Mkm restated a “buy” rating on shares of Advanced Micro Devices in a research note on Wednesday. DZ Bank upgraded shares of Advanced Micro Devices from a “hold” rating to a “buy” rating and set a $250.00 target price for the company in a research note on Wednesday, October 8th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Advanced Micro Devices in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $286.50.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.31 and a quick ratio of 1.68. The firm has a market cap of $325.92 billion, a P/E ratio of 99.10, a PEG ratio of 1.03 and a beta of 1.94. The stock’s 50 day moving average is $222.82 and its two-hundred day moving average is $203.97.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share for the quarter, beating analysts’ consensus estimates of $1.32 by $0.21. Advanced Micro Devices had a return on equity of 8.04% and a net margin of 10.32%.The company had revenue of $10.27 billion for the quarter, compared to the consensus estimate of $9.65 billion. During the same period in the previous year, the business earned $1.09 earnings per share. The company’s quarterly revenue was up 34.1% on a year-over-year basis. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Insider Buying and Selling

In related news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $215.14, for a total transaction of $26,892,500.00. Following the completion of the transaction, the chief executive officer directly owned 3,277,476 shares of the company’s stock, valued at $705,116,186.64. This trade represents a 3.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Mark D. Papermaster sold 17,108 shares of the business’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $240.12, for a total transaction of $4,107,972.96. Following the completion of the transaction, the executive vice president owned 1,714,505 shares in the company, valued at approximately $411,686,940.60. This trade represents a 0.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 164,000 shares of company stock valued at $36,034,173 in the last ninety days. Insiders own 0.06% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Joseph Group Capital Management acquired a new position in shares of Advanced Micro Devices during the fourth quarter worth approximately $25,000. ORG Wealth Partners LLC raised its position in Advanced Micro Devices by 39.7% in the 3rd quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 46 shares during the last quarter. Koesten Hirschmann & Crabtree INC. lifted its holdings in Advanced Micro Devices by 61.0% during the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 61 shares in the last quarter. Pinney & Scofield Inc. lifted its holdings in Advanced Micro Devices by 81.0% during the 2nd quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer’s stock worth $27,000 after buying an additional 85 shares in the last quarter. Finally, Avion Wealth boosted 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 valued at $30,000 after buying an additional 72 shares during the last quarter. Institutional investors and hedge funds own 71.34% of the company’s stock.

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.