Advanced Micro Devices (NASDAQ:AMD) Trading Down 1.4% – Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares dropped 1.4% during trading on Wednesday . The company traded as low as $210.33 and last traded at $210.86. Approximately 42,918,481 shares were traded during mid-day trading, an increase of 5% from the average daily volume of 40,881,543 shares. The stock had previously closed at $213.84.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Landmark Meta partnership validates AMD’s data‑center roadmap (MI450/Helios/EPYC) and creates a multi‑year revenue stream—boosting long‑term growth expectations. Cracking the Chip Monopoly: Meta Invests in AMD Chips
• Positive Sentiment: Street support and price‑target lifts: multiple firms raised targets or reaffirmed buy/outperform ratings after the Meta announcement, signaling analyst conviction in AMD’s AI/data‑center upside. Analyst price target coverage (Benzinga)
• Positive Sentiment: Bank of America and other analysts see the META deal as strategically accretive—strengthening AMD’s position in hyperscaler AI even if capex cycles rise. Meta-AMD AI deal boosts scale but extends high capex cycle, analysts say
• Neutral Sentiment: Options/ETF vehicles (AMDY) and retail chatter have amplified volatility—income products referencing AMD can magnify short‑term flows but don’t change AMD’s fundamentals. The Eye-Catching Yield on This AMD Options ETF Comes With a Serious Catch
• Neutral Sentiment: Institutional / influencer moves (e.g., ARK buys) and broad AI capex commitments (Meta’s huge 2026 capex plan) support conviction but also raise expectations that are already priced in. Social & institutional reaction summary (QuiverQuant)
• Negative Sentiment: Warrant structure and equity‑linked terms with Meta create dilution risk and “circular commerce” concerns for some investors; a few analysts flagged execution and dilution as meaningful negatives. Meta Deal ‘Wildly Concerning’ For AMD Stock, Says Rick Heitzmann
• Negative Sentiment: Competitive pressure from NVIDIA remains the largest structural risk; NVDA product roadmaps (e.g., Vera Rubin) and entrenched share could limit AMD’s pricing power and margin expansion. Nvidia counters AMD with Vera Rubin AI system (TipRanks)
• Negative Sentiment: Technical / sentiment signals: some traders point to short‑term topping patterns and profit‑taking after the post‑deal rally, which can drive intraday weakness despite constructive fundamentals. AMD Faces Further Downside After Double-Top Signal

Analysts Set New Price Targets

AMD has been the topic of a number of analyst reports. Wall Street Zen raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a research report on Monday, January 26th. Royal Bank Of Canada restated a “sector perform” rating and set a $230.00 target price on shares of Advanced Micro Devices in a research note on Wednesday. Piper Sandler reiterated an “overweight” rating on shares of Advanced Micro Devices in a research report on Wednesday. Truist Financial set a $283.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, February 4th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Advanced Micro Devices from $180.00 to $270.00 and gave the company a “neutral” rating in a research report on Wednesday, November 5th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average target price of $290.53.

Advanced Micro Devices Price Performance

The company has a quick ratio of 2.01, a current ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm’s fifty day moving average price is $219.55 and its 200 day moving average price is $207.81. The stock has a market cap of $343.79 billion, a PE ratio of 79.57, a P/E/G ratio of 0.74 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.21. The company had revenue of $10.27 billion during the quarter, compared to analysts’ expectations of $9.65 billion. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. Advanced Micro Devices’s quarterly revenue was up 34.1% on a year-over-year basis. During the same period last year, the company posted $1.09 earnings per share. As a group, equities analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,450 shares of the firm’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $216.81, for a total transaction of $4,216,954.50. Following the completion of the transaction, the executive vice president owned 289,098 shares in the company, valued at $62,679,337.38. This trade represents a 6.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $214.36, for a total value of $26,795,000.00. Following the completion of the sale, the chief executive officer directly owned 3,152,476 shares in the company, valued at approximately $675,764,755.36. The trade was a 3.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 271,892 shares of company stock valued at $58,476,908. 0.06% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently modified their holdings of AMD. Norges Bank bought a new position in Advanced Micro Devices during the fourth quarter valued at $4,929,312,000. Jennison Associates LLC boosted its stake in shares of Advanced Micro Devices by 181.6% during the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after purchasing an additional 7,035,991 shares during the period. Cardano Risk Management B.V. purchased a new position in shares of Advanced Micro Devices during the 4th quarter worth about $1,000,783,000. Wellington Management Group LLP grew its holdings in Advanced Micro Devices by 335.9% during the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock valued at $784,330,000 after purchasing an additional 3,735,807 shares during the last quarter. Finally, Franklin Resources Inc. raised its position in Advanced Micro Devices by 340.1% in the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after purchasing an additional 3,669,054 shares during the period. Hedge funds and other institutional investors 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.