Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 2.1% – What’s Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) traded down 2.1% during mid-day trading on Friday . The company traded as low as $502.61 and last traded at $521.58. 52,015,729 shares changed hands during mid-day trading, an increase of 38% from the average daily volume of 37,818,934 shares. The stock had previously closed at $532.57.

Key Advanced Micro Devices News

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

• Positive Sentiment: Wall Street sentiment remains upbeat, with multiple analysts raising AMD price targets in June, including a street-high call from UBS, as firms increasingly view AMD as a bigger player in AI infrastructure and data center CPUs.
• Positive Sentiment: AMD continues to gain credibility in enterprise AI, including recognition from Gartner as a leading server CPU company, which supports the long-term growth case for its data center business. Article Title
• Positive Sentiment: New business wins are also helping sentiment, including a definitive agreement with Rackspace Technology to deploy AMD-based infrastructure, reinforcing demand for AMD chips in cloud and enterprise workloads. Article Title
• Positive Sentiment: Several recent articles argue AMD still has meaningful upside as investors focus on its CPU and AI data center growth, with some bullish commentary suggesting the market may still be underappreciating its long-term earnings power.
• Neutral Sentiment: One recent piece highlighted both the positives and a caution on AMD, noting the stock’s huge six-month run and suggesting investors should stay aware of valuation risk after such a strong rally.
• Negative Sentiment: The semiconductor group has also been under pressure today, with AI chip names, including AMD, softening as momentum in the sector cools and investors rotate out of the space. Article Title
• Negative Sentiment: Bearish/neutral valuation commentary has also picked up, with some coverage questioning whether AMD’s rapid stock gains have already priced in a lot of future growth, which can weigh on the shares in the short term.

Wall Street Analyst Weigh In

AMD has been the subject of a number of analyst reports. KeyCorp boosted their price target on Advanced Micro Devices from $330.00 to $530.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Raymond James Financial assumed coverage on Advanced Micro Devices in a report on Wednesday, May 6th. They set a “market perform” rating on the stock. Mizuho lifted their price objective on shares of Advanced Micro Devices from $515.00 to $615.00 and gave the company an “outperform” rating in a research note on Monday, June 1st. Susquehanna upped their price objective on shares of Advanced Micro Devices from $375.00 to $450.00 and gave the stock a “positive” rating in a report on Wednesday, May 6th. Finally, Wells Fargo & Company increased their target price on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average target price of $440.41.

Advanced Micro Devices Stock Down 2.1%

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 company has a market capitalization of $850.49 billion, a PE ratio of 171.01, a price-to-earnings-growth ratio of 1.54 and a beta of 2.50. The business’s 50 day simple moving average is $445.21 and its 200 day simple moving average is $296.11.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping 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 business had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. During the same period last year, the firm posted $0.96 earnings per share. The firm’s quarterly revenue was up 37.8% compared to the same quarter last year. As a group, analysts forecast that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Transactions at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the sale, the executive vice president 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Nora Denzel sold 8,626 shares of the firm’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 completion of the sale, the director directly owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This trade represents a 9.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 378,032 shares of company stock worth $161,876,596. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Ballast Advisors LLC purchased a new position in Advanced Micro Devices during the 1st quarter valued at about $110,000. Sapient Capital LLC lifted its position in shares of Advanced Micro Devices by 147.3% in the first quarter. Sapient Capital LLC now owns 5,130 shares of the semiconductor manufacturer’s stock worth $1,044,000 after purchasing an additional 3,056 shares in the last quarter. Vilga Financial Planning LLC purchased a new stake in shares of Advanced Micro Devices in the first quarter worth approximately $200,000. PVG Asset Management Corp boosted its holdings in shares of Advanced Micro Devices by 498.1% during the first quarter. PVG Asset Management Corp now owns 13,769 shares of the semiconductor manufacturer’s stock worth $2,801,000 after purchasing an additional 11,467 shares during the period. Finally, Lombard Odier Asset Management Europe Ltd boosted its holdings in shares of Advanced Micro Devices by 31.4% during the first quarter. Lombard Odier Asset Management Europe Ltd now owns 90,469 shares of the semiconductor manufacturer’s stock worth $18,404,000 after purchasing an additional 21,615 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

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.