Advanced Micro Devices (AMD) shares are sliding more than 3% in Tuesday's premarket session, as investors pull back from high-beta technology stocks. Nasdaq futures are down 1.19%, while S&P 500 futures have shed 0.42%.
The decline comes a day after AMD closed a $4.75 billion senior notes offering. The offering includes $1.25 billion of 4.6% senior notes due 2029, $1.5 billion of 5% notes due 2031, $1 billion of 5.25% notes due 2033 and $1 billion of 5.5% notes due 2036. AMD plans to use the net proceeds for general corporate purposes, which may include debt repayment.
The stock has gained 187.27% over the past 12 months. As a result, AMD may be more vulnerable to profit-taking when investors reduce exposure to growth stocks. Meanwhile, weaker index futures are putting additional pressure on semiconductor stocks. High-beta names can see sharper swings during broader risk-off sessions.
Technical Analysis
AMD remains in a longer-term uptrend despite the recent weakness. The stock is trading 13.3% above its 100-day simple moving average of $431.93. It is also 50.3% above its 200-day SMA of $325.57.
However, the short-term trend has weakened. AMD is about 1% below its 20-day SMA of $494.36 and 4.1% below its 50-day SMA of $510.06. The 20-day SMA is also below the 50-day SMA. That signals weaker short-term momentum despite the broader uptrend.
AMD's relative strength index stands at 51.40. That puts the stock in neutral territory, with neither buyers nor sellers showing extreme momentum. Key resistance sits near $530, while support is around $460.
Analyst Outlook
AMD trades at a price-to-earnings ratio of about 129.1, reflecting a premium valuation. The stock carries a Buy consensus rating with an average price forecast of $591.39.
Argus Research maintained a Buy rating and raised its price forecast to $625 on Aug. 6. Rosenblatt maintained a Buy rating and lifted its forecast to $700 the same day. JPMorgan maintained a Neutral rating and raised its forecast to $550 on Aug. 5.
MarketDash Edge Rankings
AMD scores strongly on several MarketDash Edge measures. Its Momentum score stands at 97.97, while its Quality score is 93.88 and its Growth score is 94.81. However, its Value score is just 4.38.
The combination points to strong momentum, growth and quality but a stretched valuation. That profile can leave the stock more exposed when investors move away from higher-priced growth stocks.
Top ETF Exposure
AMD has an 8.10% weighting in the iShares Semiconductor ETF (SOXX). It also accounts for 7.74% of the CoreValues America First Technology ETF (USMD) and 6.87% of the ARK Autonomous Technology & Robotics ETF (ARKQ).
Because AMD has significant weightings in these funds, ETF inflows and outflows can contribute to buying or selling pressure in the stock.
Price Action
Advanced Micro Devices shares were down 3.01% at $490.78 in Tuesday's premarket trading, according to market data.
