Advanced Micro Devices (NASDAQ:AMD) Shares Up 2.5% – Still a Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded up 2.5% during mid-day trading on Thursday . The stock traded as high as $550.88 and last traded at $532.57. 26,768,615 shares traded hands during trading, a decline of 29% from the average daily volume of 37,708,262 shares. The stock had previously closed at $519.74.

More Advanced Micro Devices News

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

• Positive Sentiment: UBS reportedly raised its AMD price target to $670, reinforcing the view that the company’s data center business could drive substantial upside as server CPU demand rises. Why Is AMD Stock Gaining Thursday?
• Positive Sentiment: Gartner called AMD “the company to beat” for enterprise AI server CPUs, adding to confidence that AMD is gaining share in higher-value AI and data center workloads. Gartner Says AMD Is the ‘Company to Beat for Enterprise AI Server CPUs’
• Positive Sentiment: Analysts continue to frame AMD as a major AI beneficiary, with reports highlighting strong HPC gains, surging data center revenue, and potential long-term growth toward a trillion-dollar market value. AMD’s Supercomputing Gains Fuel AI Data Center Growth: What’s Ahead?
• Neutral Sentiment: Several commentary pieces compare AMD favorably with Nvidia on growth potential, but also note AMD is trading at a much richer valuation than peers, which may limit near-term upside if expectations cool. AMD Is Trading at 97 Times Forward Earnings While Nvidia Trades at 21 Times
• Negative Sentiment: One article argued that Micron’s blowout results did not lift AMD or the broader chip group, underscoring that the rally is becoming more selective and not every AI-linked name is participating. Why Micron earnings aren’t driving Intel, AMD shares higher?

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on AMD shares. Sanford C. Bernstein set a $600.00 target price on shares of Advanced Micro Devices and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Piper Sandler reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a research note on Wednesday, February 25th. Cantor Fitzgerald raised their price objective on shares of Advanced Micro Devices to $500.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Wedbush lifted their target price on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the company an “outperform” rating in a research note on Monday, May 4th. Finally, Weiss Ratings raised Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $440.41.

Advanced Micro Devices Trading Up 2.5%

The company’s 50-day moving average is $434.39 and its 200-day moving average is $292.31. 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 cap of $868.41 billion, a price-to-earnings ratio of 174.61, a P/E/G ratio of 1.53 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating 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 firm had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter last year, the company posted $0.96 EPS. The company’s quarterly revenue was up 37.8% compared to the same quarter last year. On average, research analysts predict that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the completion of the transaction, the executive vice president owned 1,233,687 shares in the company, valued at $661,663,348.71. The trade was a 0.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total value of $10,832,450.64. Following the transaction, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 378,032 shares of company stock valued at $161,876,596 over the last three months. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently made changes to their positions in the company. Brighton Jones LLC boosted its holdings in Advanced Micro Devices by 178.2% in the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after acquiring an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in Advanced Micro Devices by 2.9% during the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock valued at $1,001,000 after purchasing an additional 234 shares during the period. Sivia Capital Partners LLC lifted its position in Advanced Micro Devices by 125.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock valued at $758,000 after purchasing an additional 2,970 shares during the period. United Bank boosted its stake in shares of Advanced Micro Devices by 22.0% in the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after purchasing an additional 2,392 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its stake in shares of Advanced Micro Devices by 361.0% during the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after buying an additional 7,228 shares during the last quarter. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

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.