Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report)’s stock price fell 17.3% during mid-day trading on Thursday. The company traded as low as $402.10 and last traded at $404.40. 69,839,769 shares were traded during mid-day trading, an increase of 119% from the average daily volume of 31,918,953 shares. The stock had previously closed at $488.78.
Advanced Micro Devices News Roundup
Here are the key news stories impacting Advanced Micro Devices this week:
- Positive Sentiment: AMD reported record third-quarter revenue of about $13.4 billion, up 45% year over year, with earnings per share above estimates and data-center revenue nearly doubling. Management forecast roughly $17 billion in fourth-quarter revenue and expects revenue to grow more than 80% next year, supported by AI demand. Is AMD Stock a Buy as AI Revenue Soars?
- Positive Sentiment: CEO Lisa Su pushed back against concerns about AI spending, calling the market’s view short-sighted and reaffirming expectations for sustained demand for computing and data-center capacity. AMD CEO Lisa Su Calls This Market Moment ‘Short-Sighted’ on AI Spending
- Positive Sentiment: Some analysts raised their targets after the results: HSBC lifted its target to $540 while keeping a Hold rating, and DZ Bank raised its target to $620. These revisions signal confidence in AMD’s growth potential, though they do not eliminate execution risks. HSBC raises AMD target to $540 but flags a troubling risk
- Negative Sentiment: The immediate pressure is largely tied to a sector-wide AI and chip sell-off following the Democratic midterm wins. Investors are concerned about potential policy constraints on AI and data-center expansion, outweighing AMD’s strong earnings in the near term. Why AMD Stock Is Down Today
- Negative Sentiment: AMD’s sharp run-up has left its valuation demanding, making investors less forgiving if growth or returns fall short. Coverage also highlights the need to convert AI wins into profitable growth and concerns about data-center investment and infrastructure hurdles. Is Advanced Micro Devices (AMD) Fully Priced After Record AI Growth?
Analysts Set New Price Targets
AMD has been the subject of several recent research reports. TD Cowen reiterated a “buy” rating on shares of Advanced Micro Devices in a report on Monday, October 19th. Piper Sandler raised their price target on Advanced Micro Devices from $600.00 to $650.00 and gave the stock an “overweight” rating in a report on Wednesday. Wedbush reissued an “outperform” rating and set a $600.00 price target on shares of Advanced Micro Devices in a report on Wednesday. Wolfe Research reissued an “outperform” rating and issued a $650.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday. Finally, Union Gaming Research reissued a “positive” rating on shares of Advanced Micro Devices in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $633.17.
Read Our Latest Analysis on Advanced Micro Devices
Advanced Micro Devices Price Performance
The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The company’s 50-day simple moving average is $548.90 and its 200 day simple moving average is $413.03. The company has a market capitalization of $660.17 billion, a P/E ratio of 87.91, a P/E/G ratio of 4.97 and a beta of 2.49.
Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, beating analysts’ consensus estimates of $1.95 by $0.14. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.34%. The company had revenue of $13.38 billion for the quarter, compared to analyst estimates of $13.10 billion. During the same quarter last year, the firm posted $1.20 earnings per share. The company’s quarterly revenue was up 44.7% compared to the same quarter last year. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.
Insider Activity
In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares of the company’s stock, valued at $76,316,924.32. This represents a 8.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the transaction, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. This trade represents a 11.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 231,100 shares of company stock valued at $114,867,400. 0.50% of the stock is owned by company insiders.
Institutional Trading of Advanced Micro Devices
A number of hedge funds have recently modified their holdings of AMD. BlackRock Inc. lifted its stake in Advanced Micro Devices by 3.1% in the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after buying an additional 4,535,126 shares in the last quarter. State Street Corp lifted its stake in 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 acquiring an additional 2,149,563 shares during the last quarter. 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 boosted its position in Advanced Micro Devices by 5.8% during the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after purchasing an additional 545,575 shares during the period. Finally, Wellington Management Group LLP grew its position in shares of 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 valued at $5,422,444,000 after purchasing an additional 2,365,419 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.
About Advanced Micro Devices
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.
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