Advanced Micro Devices (NASDAQ:AMD) Trading Up 4.6% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was up 4.6% on Thursday . The stock traded as high as $527.20 and last traded at $518.09. Approximately 31,198,929 shares changed hands during mid-day trading, a decline of 20% from the average daily volume of 38,970,707 shares. The stock had previously closed at $495.54.

Key Advanced Micro Devices News

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

• Positive Sentiment: Multiple articles highlighted AMD’s expanding AI and data center opportunity, including bullish takes that the company could be a major winner in the next AI cycle and that Wall Street sees a much larger market opportunity ahead. AMD Could Be the Biggest Winner in the Next AI Battle
• Positive Sentiment: Analyst commentary remained constructive overall, with reports pointing to continued upside potential from AMD’s rapid data center expansion and AI infrastructure demand. Prediction: AMD’s Rapid Data Center Expansion Fuels Bullish Target
• Neutral Sentiment: AMD CEO Lisa Su’s China trip and MIT commencement speech kept the company in the news, but the coverage was mostly about leadership presence and AI messaging rather than a direct business catalyst. In China, AMD CEO Lisa Su is understated while Nvidia’s Huang is more razzmatazz
• Neutral Sentiment: Rocket One’s acceptance into AMD’s AI Developer Program added another ecosystem-related headline, but the near-term financial impact appears limited. Rocket One Accepted into AMD AI Developer Program
• Negative Sentiment: Several pieces urged caution after AMD’s sharp run-up, including a Seeking Alpha downgrade calling the top and an article noting that there may be less room for mistakes at current levels. AMD: Ring, Ring – The Top Is Calling (Downgrade)
• Negative Sentiment: ARK Invest’s Cathie Wood trimmed her AMD stake, adding to investor concerns that some funds may be taking profits after the stock’s strong rally. Ark Investment’s Cathie Wood Just Trimmed Her AMD Stake

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on AMD shares. Weiss Ratings raised Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, May 6th. Roth Mkm reissued a “buy” rating and issued a $500.00 target price on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Truist Financial set a $478.00 target price on Advanced Micro Devices in a report on Wednesday, May 6th. Bank of America boosted their target price on Advanced Micro Devices from $450.00 to $500.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Finally, HSBC downgraded Advanced Micro Devices from a “buy” rating to a “hold” rating and boosted their target price for the company from $335.00 to $340.00 in a report on Monday, May 4th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, Advanced Micro Devices currently has an average rating of “Moderate Buy” and a consensus price target of $410.00.

Advanced Micro Devices Price Performance

The stock has a market cap of $841.43 billion, a price-to-earnings ratio of 169.19, a PEG ratio of 1.52 and a beta of 2.40. The company has a 50-day moving average of $327.78 and a 200-day moving average of $255.70. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter in the previous year, the firm posted $0.96 EPS. The firm’s quarterly revenue was up 37.8% on a year-over-year basis. As a group, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total value of $55,688,750.00. Following 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 transaction was disclosed in a legal filing with the SEC, 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 company’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $350.00, for a total value of $10,962,000.00. Following the completion of the sale, the executive vice president owned 1,236,037 shares in the company, valued at approximately $432,612,950. This 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. In the last 90 days, insiders have sold 329,085 shares of company stock worth $114,051,007. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC lifted its stake in Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after buying an additional 29,438 shares in the last quarter. Revolve Wealth Partners LLC lifted its stake in Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock valued at $1,001,000 after buying an additional 234 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in Advanced Micro Devices by 125.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock valued at $758,000 after buying an additional 2,970 shares in the last quarter. United Bank lifted its stake in Advanced Micro Devices by 22.0% in the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after buying an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. lifted its stake in Advanced Micro Devices by 361.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock valued at $1,310,000 after buying an additional 7,228 shares in the last quarter. 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.