Advanced Micro Devices (NASDAQ:AMD) Shares Up 1.8% – Still a Buy?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 1.8% during mid-day trading on Wednesday . The stock traded as high as $491.69 and last traded at $482.93. Approximately 18,185,361 shares traded hands during trading, a decline of 49% from the average daily volume of 35,824,480 shares. The stock had previously closed at $474.32.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD announced a collaboration with the University of Oxford’s BOLD initiative, supporting research and development involving advanced computing and AI. The agreement adds to the company’s technology ecosystem and helped improve investor sentiment. AMD Stock Jumps Over 2% on a New MOU With the University of Oxford’s BOLD
• Positive Sentiment: Recent commentary points to growing AI infrastructure demand as a catalyst for AMD. Super Micro Computer’s results and outlook appear to have reinforced expectations for continued accelerator demand, while AMD’s data-center revenue recently more than doubled and management raised guidance. Why Is AMD Stock Up Today?
• Positive Sentiment: AMD’s partnership with Core Scientific, involving more than 500 megawatts of U.S. data-center capacity beginning in 2027 and potential expansion to 2.5 gigawatts, strengthens the company’s long-term AI infrastructure narrative. Core Scientific Rises on AMD Tie-Up
• Positive Sentiment: Bessemer Group reportedly added approximately 1.14 million AMD shares, a sizable increase in its latest quarterly portfolio disclosure. The move may be viewed as institutional confidence in AMD’s AI growth prospects, although 13F data is backward-looking and estimates may contain errors. Bessemer Group AMD Holdings Update
• Neutral Sentiment: Optiver completely exited an estimated 326,280-share AMD position, while Amundi and ProShare Advisors also reduced their holdings. These sales contrast with Bessemer’s buying and signal mixed institutional positioning. Optiver Holdings Update
• Negative Sentiment: At roughly 63 times forward earnings, AMD trades at a substantial premium to Nvidia, according to one analysis. Critics argue that AMD’s smaller scale, slower growth, and already-strong share performance leave limited room for execution disappointments. AMD Trades at 63x Forward Earnings

Wall Street Analyst Weigh In

AMD has been the subject of several recent research reports. Needham & Company LLC upgraded shares of Advanced Micro Devices to a “buy” rating in a research note on Wednesday, May 6th. KeyCorp set a $650.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. BTIG Research raised shares of Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $540.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Finally, Wedbush reissued an “outperform” rating and issued a $600.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $546.87.

Advanced Micro Devices Trading Up 1.8%

The company has a market cap of $788.37 billion, a price-to-earnings ratio of 124.15 and a beta of 2.48. 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 fifty day moving average price is $512.81 and its 200-day moving average price is $363.26.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate 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 business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the prior year, the firm earned $0.48 earnings per share. The company’s quarterly revenue was up 50.1% on a year-over-year basis. On average, equities analysts expect that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

Insider Activity

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the sale, the executive vice president owned 324,527 shares of the company’s stock, valued at approximately $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company’s stock, valued at approximately $1,334,572,400.31. This represents a 4.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 160,934 shares of company stock worth $74,664,256 in the last quarter. Company insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AMD. Joseph Group Capital Management acquired a new position in Advanced Micro Devices during the 4th quarter valued at about $25,000. Sarver Vrooman Wealth Advisors acquired a new stake in shares of Advanced Micro Devices in the 4th quarter worth approximately $27,000. Cornerstone Financial Management LLC bought a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Basepoint Wealth LLC bought a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Finally, Graney & King LLC acquired a new position in shares of Advanced Micro Devices during the first quarter valued at approximately $31,000. Institutional investors and hedge funds 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.