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

Posted by George Bondi on Oct 24th, 2026

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report) traded down 8.1% on Thursday. The stock traded as low as $502.60 and last traded at $507.93. Approximately 27,465,379 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 31,990,016 shares. The stock had previously closed at $552.72.

Key Stories Impacting Advanced Micro Devices

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

Positive Sentiment: Analyst support is helping sentiment. AMD received an analyst upgrade, while Erste Group raised its FY2027 earnings estimate to $15.05 per share from $14.80. The company’s long-term earnings outlook is being supported by expectations for continued AI accelerator demand. AMD Stock Jumps Following Analyst Upgrade
Positive Sentiment: AI growth remains the core bullish argument. Articles point to AMD’s hyperscaler contracts, data-center expansion and expected product cycles as potential drivers of substantial future revenue growth. AMD recently reported 50.1% year-over-year revenue growth, and analysts continue to debate whether its AI opportunity is being underestimated. AMD’s Potential May Be Underestimated
Neutral Sentiment: Today’s strength follows a broad technology rebound. AMD and Intel recovered after a sharp semiconductor sell-off, while AMD also contributed to gains in the Invesco QQQ Trust. This suggests some of the buying reflects sector rotation and short-term dip buying rather than a change in AMD’s fundamentals. Why AMD and Intel Stocks Are Gaining
Negative Sentiment: Valuation and execution risks remain significant. AMD has already risen sharply this year, and its high earnings multiple leaves little room for disappointment. Investors are focused on whether upcoming earnings and new AI products can validate the expectations embedded in the stock. AMD Stock Price Prediction
Negative Sentiment: Competitive and macroeconomic pressures could limit upside. Nvidia is expanding into CPU systems traditionally dominated by AMD and Intel, while higher oil prices, interest rates and questions about AI infrastructure spending are weighing on the broader semiconductor trade. Nvidia Enters the CPU Market

Analyst Upgrades and Downgrades

AMD has been the topic of a number of research analyst reports. Weiss Ratings upgraded Advanced Micro Devices from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. The Goldman Sachs Group boosted their price objective on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Wedbush restated an “outperform” rating and set a $600.00 target price on shares of Advanced Micro Devices in a research report on Tuesday. Truist Financial raised their price target on Advanced Micro Devices from $478.00 to $594.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. Three investment 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 assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $606.76.

Check Out Our Latest Research Report on AMD

Advanced Micro Devices Stock Up 1.7%

The firm has a market capitalization of $843.65 billion, a P/E ratio of 132.85, a PEG ratio of 5.21 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. The firm’s 50 day moving average is $541.54 and its two-hundred day moving average is $483.45.

Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) 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 company had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter last year, the company posted $0.48 EPS. Advanced Micro Devices’s quarterly revenue was up 50.1% compared to the same quarter last year. Research analysts predict that Advanced Micro Devices, Inc. will post 6.50 EPS for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Mark Papermaster sold 28,811 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares of the company’s stock, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,262 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total value of $9,333,563.40. Following the completion of the transaction, the executive vice president directly owned 353,317 shares in the company, valued at approximately $191,038,501.90. This trade represents a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 231,100 shares of company stock valued at $114,867,400 over the last ninety days. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently bought and sold shares of AMD. Bank of America Corp DE bought a new stake in shares of Advanced Micro Devices in the second quarter worth about $7,022,226,000. BlackRock Inc. raised its holdings in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares in the last quarter. Jupiter Topco LLC purchased a new position in shares of Advanced Micro Devices during the second quarter valued at about $2,084,651,000. Wellington Management Group LLP lifted its holdings in Advanced Micro Devices by 33.9% in the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after buying an additional 2,365,419 shares during the period. Finally, State Street Corp lifted its stake in shares of Advanced Micro Devices by 2.9% in the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after purchasing an additional 2,149,563 shares during the period. 71.34% of the stock is owned by institutional investors.

About Advanced Micro Devices

(Get Free Report)

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.