Advanced Micro Devices (NASDAQ:AMD) Sets New 1-Year High – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares reached a new 52-week high during mid-day trading on Monday . The company traded as high as $604.25 and last traded at $608.7330, with a volume of 8365269 shares trading hands. The stock had previously closed at $559.82.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AI infrastructure demand is driving the rally. Investors are responding to AMD’s expanding use in data centers, regulated AI workloads, inference applications and AI-agent deployments. Meta’s Muse has reinforced expectations that AI growth will require both GPUs and high-performance CPUs, benefiting AMD’s Instinct accelerators and EPYC processors. AMD Stock Just Sent a Huge AI Signal
• Positive Sentiment: Major customer commitments support the growth outlook. Reports cite an agreement for up to six gigawatts of AMD computing capacity with OpenAI and an Oracle order for 50,000 MI450 accelerators. Management has also indicated that data-center sales could double by 2027. AMD Chips Away at NVIDIA’s AI Throne
• Positive Sentiment: Recent financial results and pricing power are encouraging. Quarterly revenue increased 50.1% year over year to $11.54 billion, while EPS of $1.66 exceeded estimates. Data-center revenue reportedly grew 107%, and a planned price increase on select chips could help offset higher manufacturing costs and support margins. AMD also benefits from a low debt burden and strong liquidity.
• Positive Sentiment: Reports of GDDR7 memory adoption for Radeon GPUs, strong demand for AMD-powered cloud capacity and continued institutional interest—including a Q2 purchase by Gabelli’s Global Growth Fund—provide additional support. Gabelli Global Growth Fund Added AMD

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on AMD shares. Cantor Fitzgerald reiterated an “overweight” rating and set a $700.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Benchmark increased their price objective on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. raised their price objective on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Loop Capital upgraded shares of Advanced Micro Devices to a “strong-buy” rating in a research report on Tuesday, June 16th. Finally, Piper Sandler started coverage on shares of Advanced Micro Devices in a research note on Tuesday, September 15th. They issued an “overweight” rating and a $600.00 target price on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Advanced Micro Devices currently has an average rating of “Moderate Buy” and an average target price of $565.12.

Advanced Micro Devices Stock Performance

The company has a market capitalization of $1.02 trillion, a P/E ratio of 160.35, a PEG ratio of 6.38 and a beta of 2.48. The stock has a fifty day simple moving average of $497.38 and a 200-day simple moving average of $422.43. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm’s revenue for the quarter was up 50.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.48 EPS. Equities analysts forecast that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 70,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the sale, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at approximately $1,536,696,660.80. The trade was a 2.26% 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. Over the last 90 days, insiders sold 213,838 shares of company stock valued at $105,533,836. 0.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors have recently bought and sold shares of the business. Norges Bank acquired a new position in Advanced Micro Devices in the fourth quarter valued at approximately $4,929,312,000. Bank of America Corp DE acquired a new stake in Advanced Micro Devices during the 2nd quarter worth $7,022,226,000. Cardano Risk Management B.V. acquired a new stake in Advanced Micro Devices during the 4th quarter worth $1,000,783,000. BlackRock Inc. raised its position in shares of Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after acquiring an additional 4,535,126 shares during the last quarter. Finally, Franklin Resources Inc. raised its position in shares of Advanced Micro Devices by 340.1% during the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $1,016,796,000 after acquiring an additional 3,669,054 shares during the last quarter. 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.