Advanced Micro Devices (NASDAQ:AMD) Sets New 52-Week High – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares hit a new 52-week high during trading on Friday . The stock traded as high as $481.41 and last traded at $465.3440, with a volume of 4723892 shares traded. The stock had previously closed at $449.59.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD said it will invest over $10 billion in Taiwan to expand partnerships and advanced packaging capacity for AI infrastructure, which could support future growth and supply availability. Reuters: AMD says it will invest over $10 billion across Taiwan’s AI ecosystem
• Positive Sentiment: AMD began ramping production of its “Venice” EPYC CPUs on TSMC’s 2nm technology, a milestone that suggests it is advancing its AI and data-center roadmap ahead of rivals. GlobeNewswire: AMD Announces Production Ramp of Next-Generation AMD EPYC Processor Venice on TSMC 2nm Process Technology
• Positive Sentiment: Management said AI customers need more compute capacity, and Lisa Su stated AMD is asking partners to ramp production because demand remains strong, which signals potential revenue momentum. Reuters: AMD asking partners to ramp up production, CEO says
• Positive Sentiment: Recent earnings also supported the rally: AMD beat Q1 expectations with revenue of $10.25 billion, while data-center revenue rose sharply year over year, reinforcing optimism around the AI trade. TipRanks: AMD Stock Hits All-Time High as Nvidia Earnings Boost Confidence in the AI Trade

Wall Street Analyst Weigh In

Several research analysts have recently commented on AMD shares. Wedbush raised their target price on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the stock an “outperform” rating in a report on Monday, May 4th. Wall Street Zen raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Monday, January 26th. Citigroup lifted their price objective on shares of Advanced Micro Devices from $358.00 to $460.00 and gave the company a “neutral” rating in a research note on Monday. Royal Bank Of Canada lifted their price objective on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the company a “sector perform” rating in a research note on Wednesday, May 6th. Finally, BTIG Research raised shares of Advanced Micro Devices to a “buy” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $410.00.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The stock has a market cap of $772.11 billion, a price-to-earnings ratio of 154.98, a price-to-earnings-growth ratio of 1.33 and a beta of 2.40. The business’s 50-day simple moving average is $292.17 and its two-hundred day simple moving average is $245.31.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter last year, the business posted $0.96 earnings per share. The company’s quarterly revenue was up 37.8% on a year-over-year basis. Research analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the sale, the executive vice president owned 105,222 shares in the company, valued at $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the sale, the chief executive officer owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This represents a 3.97% decrease in their position. 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 309,598 shares of company stock worth $105,644,316 over the last quarter. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Hedge funds have recently added to or reduced their stakes in the stock. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $25,000. Koesten Hirschmann & Crabtree INC. grew its stake in shares of Advanced Micro Devices by 61.0% in the third quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $27,000. Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $27,000. Finally, Basepoint Wealth LLC bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $30,000. 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.