Advanced Micro Devices (NASDAQ:AMD) Trading Up 7.8% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 7.8% during mid-day trading on Tuesday . The company traded as high as $506.96 and last traded at $503.89. Approximately 37,954,995 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 39,159,109 shares. The stock had previously closed at $467.51.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Rocket One was accepted into the AMD AI Developer Program, giving the company access to AMD cloud tools, credits, and technical resources that could help expand demand for AMD’s AI ecosystem. Rocket One Accepted into AMD AI Developer Program to Advance Simulation of Next-Generation Nanomagnetic AI Accelerator Architecture for AI, Defense and Space Applications
• Positive Sentiment: Several articles argue AMD still has room to run after its post-earnings surge, citing strong data center growth, rising EPYC and Instinct adoption, and the company’s expanding AI opportunity. AMD’s Data Center Growth Rides on EPYC Demand: More Upside Ahead?
• Positive Sentiment: Analyst sentiment remains constructive, with recent upgrades and higher price targets suggesting Wall Street sees a much larger market opportunity for AMD’s CPU and AI businesses. Why Wall Street Sees A Much Bigger Market Opportunity For AMD
• Positive Sentiment: AMD’s AI narrative is also being reinforced by bullish opinion pieces saying the stock’s rally may still be unfinished, keeping momentum traders engaged. AMD Stock Is On A Once-In-50-Year Run — And It Looks Like Unfinished Business
• Neutral Sentiment: Cathie Wood and ARK Invest sold more than $16 million of AMD shares, which may create some near-term headline pressure but does not change the company’s operating outlook. Cathie Wood Just Sold $16 Million of AMD Stock. Why Did ARK Invest Sell the Chip Giant?
• Neutral Sentiment: Coverage noting Nvidia’s relative underperformance versus the broader chip sector is helping frame AMD as a beneficiary of shifting AI hardware demand, though the impact is indirect. Nvidia Stock Is Now a Chip Laggard

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on AMD shares. Sanford C. Bernstein raised shares of Advanced Micro Devices from a “market perform” rating to an “outperform” rating and raised their price objective for the stock from $265.00 to $525.00 in a report on Wednesday, May 6th. Susquehanna raised their price objective on shares of Advanced Micro Devices from $375.00 to $450.00 and gave the stock a “positive” rating in a report on Wednesday, May 6th. DA Davidson raised their price objective on shares of Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Evercore reissued an “outperform” rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Finally, Rosenblatt Securities lifted their price target on shares of Advanced Micro Devices from $300.00 to $490.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and an average price target of $410.00.

Advanced Micro Devices Price Performance

The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The firm has a market cap of $844.80 billion, a PE ratio of 169.87, a P/E/G ratio of 1.46 and a beta of 2.40. The firm’s fifty day simple moving average is $321.45 and its two-hundred day simple moving average is $253.87.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results 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 business had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the previous year, the firm earned $0.96 earnings per share. The company’s revenue for the quarter was up 37.8% on a year-over-year basis. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Activity at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the business’s stock in a transaction 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 transaction, the executive vice president owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer directly owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This trade represents a 3.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 329,085 shares of company stock worth $114,051,007 over the last ninety days. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds have recently modified their holdings of the stock. Joseph Group Capital Management purchased a new position in shares of Advanced Micro Devices in the fourth quarter worth $25,000. Koesten Hirschmann & Crabtree INC. lifted its holdings 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 buying an additional 61 shares in the last quarter. Sarver Vrooman Wealth Advisors purchased a new position in shares of Advanced Micro Devices in the fourth quarter worth $27,000. Cornerstone Financial Management LLC bought a new stake in Advanced Micro Devices in the fourth quarter worth $27,000. Finally, Basepoint Wealth LLC bought a new stake in Advanced Micro Devices in the fourth quarter worth $30,000. Hedge funds and other institutional investors 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.