Advanced Micro Devices (NASDAQ:AMD) Trading 1.3% Higher – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price rose 1.3% on Tuesday . The company traded as high as $624.52 and last traded at $623.77. Approximately 27,895,899 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 33,479,590 shares. The stock had previously closed at $615.52.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AI infrastructure demand is the primary catalyst. AMD’s market capitalization recently surpassed $1 trillion after major commitments from OpenAI, reportedly involving up to six gigawatts of AMD computing capacity, and Oracle, which ordered 50,000 next-generation Instinct MI450 accelerators. These deals support expectations for continued data-center growth. AMD Chips Away at NVIDIA’s AI Throne
• Positive Sentiment: Strong operating momentum supports the rerating. AMD’s latest quarter showed revenue of $11.54 billion, up 50.1% year over year, while data-center revenue increased 107% to $6.7 billion and adjusted EPS exceeded estimates. Management’s goal of potentially doubling data-center sales by 2027 has strengthened the long-term growth narrative. AMD: Welcome to the $1 Trillion Club
• Positive Sentiment: AI agents are broadening the opportunity beyond GPUs. Meta’s Muse has focused investor attention on the CPU capacity needed to coordinate agentic-AI workloads, benefiting AMD’s EPYC server processors alongside its Instinct accelerators. Reports of GDDR7 adoption in Radeon GPUs and a planned price increase on select high-performance chips also point to product demand and potential pricing power. Meta’s Muse Highlights AI Infrastructure
• Neutral Sentiment: Broader market conditions have helped semiconductor stocks. Falling oil prices and Treasury yields, a record Nasdaq, and renewed enthusiasm for technology shares have provided a favorable backdrop for AMD and other chipmakers.
• Negative Sentiment: Investors are taking profits after the historic advance. AMD has risen roughly 185% in 2026, and technical commentary describes the shares as overbought. The $1 trillion milestone may also encourage short-term selling, while options-driven buying or a “gamma squeeze” may not persist. AMD at $1 Trillion
• Negative Sentiment: Valuation and competitive risks remain substantial. AMD trades at a very high earnings multiple, with some analysts preferring NVIDIA or semiconductor ETFs. Supply constraints, execution risk on large AI deployments, and reported insider selling—including sales by CEO Lisa Su—could weigh on the stock if growth expectations moderate.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on AMD shares. Benchmark boosted their price objective on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Citigroup raised Advanced Micro Devices from a “market perform” rating to a “buy” rating in a research note on Wednesday, July 22nd. Truist Financial lifted their price objective on Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Susquehanna boosted their target price on Advanced Micro Devices from $450.00 to $500.00 and gave the company a “positive” rating in a research note on Thursday, July 30th. Finally, Stifel Nicolaus lifted their price target on Advanced Micro Devices from $450.00 to $635.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Stock Up 1.3%

The company’s 50-day simple moving average is $495.87 and its two-hundred day simple moving average is $419.46. The firm has a market capitalization of $1.02 trillion, a P/E ratio of 160.35, a P/E/G ratio of 5.81 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.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the firm posted $0.48 EPS. The company’s revenue for the quarter was up 50.1% compared to the same quarter last year. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Grasby sold 15,000 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the transaction, the executive vice president owned 117,687 shares of the company’s stock, valued at approximately $60,598,213.17. This represents a 11.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the sale, the executive vice president owned 160,979 shares of the company’s stock, valued at $76,316,924.32. The trade was a 8.52% 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. Over the last three months, insiders have sold 213,838 shares of company stock valued at $105,533,836. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of AMD. JNBA Financial Advisors increased its holdings in Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after acquiring an additional 30 shares during the last quarter. Bullseye Investment Management LLC bought a new position in shares of Advanced Micro Devices during the 2nd quarter valued at approximately $44,000. Luminist Capital LLC purchased a new position in shares of Advanced Micro Devices in the second quarter valued at $46,000. BOK Financial Private Wealth Inc. bought a new stake in Advanced Micro Devices in the second quarter worth $53,000. Finally, Toews Corp ADV bought a new position in Advanced Micro Devices during the second quarter valued at $66,000. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.