Advanced Micro Devices (NASDAQ:AMD) Shares Gap Down – Should You Sell?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) gapped down prior to trading on Friday. The stock had previously closed at $566.42, but opened at $508.53. Advanced Micro Devices shares last traded at $516.4950, with a volume of 5,980,354 shares.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s data-center business remains the central bullish driver. Revenue reportedly doubled, while its Helios rack-scale AI systems are shipping ahead of schedule. Management is expected to discuss further acceleration in data-center demand at the upcoming earnings release. AMD Is Chasing Nvidia in AI, but Investors Could Win Either Way
• Positive Sentiment: AMD’s expanded partnership with Meta Platforms includes a $1 billion equity investment, multi-generation chip co-design and potential deployment of up to 6 gigawatts of AMD AI infrastructure. The agreement strengthens AMD’s credibility as an alternative to Nvidia in hyperscale AI. Advanced Micro Devices’ Meta Platforms Partnership Goes Beyond a $1 Billion Investment
• Positive Sentiment: Analyst coverage remains supportive, with Susquehanna forecasting substantial appreciation and another report noting that Wall Street still sees additional upside despite the recent weakness. Susquehanna Forecasts Strong Price Appreciation for AMD
• Neutral Sentiment: Cathie Wood’s ARK Invest trimmed AMD, but the transaction is small relative to the company’s fundamentals and is receiving more attention than it likely deserves. Investors are focused instead on earnings, margins and the forward data-center outlook. Cathie Wood’s Latest AMD Move Means Absolutely Nothing
• Negative Sentiment: Intel’s roughly 25% selloff after weak fourth-quarter guidance and margin pressure triggered broad semiconductor selling. Its weak PC forecast and difficulty supplying AI-server chips have prompted investors to question whether AMD faces similar demand or production risks. AMD’s Stock Slides After Intel Earnings Reveal Two Big Issues
• Negative Sentiment: AMD’s valuation leaves limited room for disappointment after a massive year-to-date rally. Analysts say an earnings beat alone may not be sufficient; investors will likely demand stronger guidance, improving supply and evidence that 2027 data-center expectations are achievable. AMD Earnings Preview: The Bull Case Is Largely Priced In

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Benchmark raised their target price on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a report on Wednesday, July 22nd. Roth Capital boosted their price objective on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Royal Bank Of Canada restated a “sector perform” rating and issued a $540.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Susquehanna increased their price target on shares of Advanced Micro Devices from $620.00 to $650.00 and gave the stock a “positive” rating in a research report on Wednesday. Finally, KeyCorp set a $650.00 price objective on Advanced Micro Devices in a report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $607.57.

Advanced Micro Devices Stock Performance

The stock’s 50-day moving average price is $547.58 and its 200 day moving average price is $407.71. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market cap of $833.62 billion, a P/E ratio of 131.22, a price-to-earnings-growth ratio of 5.94 and a beta of 2.45.

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

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of Advanced Micro Devices stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total value of $1,462,649.17. Following the transaction, the senior vice president owned 26,623 shares in the company, valued at $13,010,393.87. The trade was a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the completion of the sale, the chief executive officer owned 74,211 shares in the company, valued at $37,609,392.69. This represents a 25.20% decrease in their position. 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 ninety days, insiders have sold 231,100 shares of company stock worth $114,867,400. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. lifted its stake in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after acquiring an additional 4,535,126 shares in the last quarter. State Street Corp raised its stake in shares of Advanced Micro Devices by 2.9% in the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after buying an additional 2,149,563 shares during the period. Bank of America Corp DE bought a new position in Advanced Micro Devices during the second quarter worth about $7,022,226,000. Jennison Associates LLC raised its holdings in Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock valued at $5,793,388,000 after acquiring an additional 545,575 shares during the period. Finally, Wellington Management Group LLP boosted its stake in Advanced Micro Devices by 33.9% in the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after purchasing an additional 2,365,419 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 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.