Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 4.6% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price rose 4.6% during trading on Thursday . The stock traded as high as $527.20 and last traded at $518.09. Approximately 31,198,929 shares were traded during mid-day trading, a decline of 20% from the average daily volume of 38,970,707 shares. The stock had previously closed at $495.54.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Wall Street commentary says AMD has a much larger market opportunity ahead, helped by Citi’s higher price target and a new CPU market model that expands the company’s addressable market. Why Wall Street Sees A Much Bigger Market Opportunity For AMD
• Positive Sentiment: Multiple upbeat articles say AMD’s AI story is still improving, with analysts arguing the company remains a key beneficiary of AI spending and that the rally may have more room to run. AMD: Winning The AI Race Without Beating Nvidia (Upgrade)
• Positive Sentiment: AMD’s data center momentum remains a major bullish catalyst, with recent coverage highlighting strong EPYC demand and rapid growth in the Instinct AI accelerator business. AMD’s Data Center Growth Rides on EPYC Demand: More Upside Ahead?
• Positive Sentiment: New partnerships and ecosystem development continue to support the stock, including Rocket One joining the AMD AI Developer Program and OneQode deploying AMD Instinct GPUs for global AI infrastructure. Rocket One Accepted into AMD AI Developer Program to Advance Simulation of Next-Generation Nanomagnetic AI Accelerator Architecture for AI, Defense and Space Applications
• Neutral Sentiment: Cathie Wood and ARK Invest sold more than $16 million of AMD shares, which may raise some short-term investor caution, but the sale does not change AMD’s broader AI growth narrative. Cathie Wood Just Sold $16 Million of AMD Stock. Why Did ARK Invest Sell the Chip Giant?
• Neutral Sentiment: Recent coverage notes AMD is near all-time highs, but also warns that expectations are elevated and the stock may be vulnerable if execution slips. What’s Going On With AMD Stock Thursday?
• Negative Sentiment: One cautionary note says Nvidia’s plan to enter the standalone server CPU market could intensify competition for AMD in a key growth area. AMD Stock Slips as Nvidia Makes Plans to Enter the Standalone Server CPU Market

Analyst Upgrades and Downgrades

AMD has been the topic of several recent research reports. Bank of America upped their price target on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Erste Group Bank raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Thursday, April 2nd. Benchmark upped their price target on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. UBS Group set a $310.00 price target on shares of Advanced Micro Devices in a report on Wednesday, February 4th. Finally, Truist Financial set a $478.00 price target on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $410.00.

Advanced Micro Devices Stock Performance

The firm’s 50 day moving average price is $315.01 and its 200-day moving average price is $251.86. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The firm has a market capitalization of $844.80 billion, a PE ratio of 169.87, a price-to-earnings-growth ratio of 1.48 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same period in the prior year, the company posted $0.96 EPS. The company’s revenue for the quarter was up 37.8% on a year-over-year basis. On average, research analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Activity

In other news, EVP Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the sale, the executive vice president directly owned 105,222 shares of the company’s stock, valued at $46,759,604.58. This represents a 18.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the sale, the executive vice president directly owned 1,236,037 shares in the company, valued at approximately $432,612,950. The trade was a 2.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 329,085 shares of company stock valued at $114,051,007. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Impax Asset Management Group plc boosted its stake in Advanced Micro Devices by 326.5% during the 3rd quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer’s stock valued at $8,424,000 after acquiring an additional 39,861 shares during the last quarter. Jefferies Financial Group Inc. boosted its stake in Advanced Micro Devices by 6,228.8% during the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after acquiring an additional 303,154 shares during the last quarter. Williamson Legacy Group LLC bought a new position in Advanced Micro Devices during the 4th quarter valued at $1,118,000. Zweig DiMenna Associates LLC boosted its stake in Advanced Micro Devices by 127.6% during the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer’s stock valued at $11,746,000 after acquiring an additional 40,708 shares during the last quarter. Finally, Thoroughbred Financial Services LLC boosted its stake in Advanced Micro Devices by 8.8% during the 4th quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock valued at $7,030,000 after acquiring an additional 2,654 shares during the last quarter. Institutional investors and hedge funds 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.