Advanced Micro Devices (NASDAQ:AMD) Shares Up 4% – Here’s Why

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 4% on Friday . The stock traded as high as $481.41 and last traded at $467.51. 34,566,669 shares were traded during mid-day trading, a decline of 12% from the average session volume of 39,169,438 shares. The stock had previously closed at $449.59.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: CEO Lisa Su said AMD expects strong CPU growth over the next five years, helping fuel optimism about long-term demand for its data center chips. AMD Stock Rallies as Lisa Su Expects CPU Growth of ‘35% Each Year’ for the Next 5 Years
• Positive Sentiment: AMD began ramping production of its “Venice” EPYC CPUs on TSMC’s 2nm node, a major manufacturing milestone that supports its AI and server growth story. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD announced more than $10 billion of investment across Taiwan’s AI ecosystem to expand advanced packaging capacity and support future AI deployments, including the Helios rack-scale platform. AMD Announces More Than $10 Billion in Taiwan Ecosystem Investments to Accelerate AI Infrastructure
• Positive Sentiment: Nvidia’s strong AI commentary and broader chip-sector momentum are boosting confidence that AMD will benefit from continued AI infrastructure spending. AMD Stock (AMD) Hits All-Time High as Nvidia Earnings Boost Confidence in the AI Trade
• Neutral Sentiment: Some commentary suggests AMD’s sharp rally has already priced in a lot of good news, so investors may continue debating valuation after the recent run-up. After a Q1 Blowout and a Soaring Share Price, Is AMD Stock Still a Buy?

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Needham & Company LLC upgraded shares of Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. Piper Sandler reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a report on Wednesday, February 25th. BTIG Research raised shares of Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Truist Financial set a $478.00 target price on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Finally, Benchmark lifted their target price on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the stock a “buy” rating 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 given a Hold rating to the stock. According to data from MarketBeat, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and a consensus target price of $410.00.

Advanced Micro Devices Stock Up 4.0%

The company has a market cap of $762.32 billion, a price-to-earnings ratio of 153.28, a price-to-earnings-growth ratio of 1.33 and a beta of 2.40. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The firm’s fifty day moving average price is $292.17 and its 200-day moving average price is $245.31.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) 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 company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same quarter in the previous year, the business earned $0.96 EPS. The firm’s revenue was up 37.8% on a year-over-year basis. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Activity

In other news, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total value of $55,688,750.00. Following the completion of the transaction, the chief executive officer owned 3,021,899 shares of the company’s stock, valued at $1,346,286,223.49. The trade was a 3.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of the business’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the transaction, the executive vice president directly owned 1,236,037 shares of the company’s stock, valued at $432,612,950. This trade represents a 2.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 309,598 shares of company stock valued at $105,644,316 in the last quarter. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in Advanced Micro Devices by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock worth $33,949,256,000 after purchasing an additional 2,525,109 shares during the period. State Street Corp boosted its stake in Advanced Micro Devices by 1.5% in the 4th quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock worth $16,044,712,000 after purchasing an additional 1,094,835 shares during the period. Geode Capital Management LLC boosted its stake in Advanced Micro Devices by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock worth $8,015,897,000 after purchasing an additional 287,525 shares during the period. Norges Bank acquired a new position in Advanced Micro Devices in the 4th quarter worth $4,929,312,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in Advanced Micro Devices by 0.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock worth $4,352,864,000 after purchasing an additional 55,969 shares during the period. 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.