Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.2% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price shot up 2.2% during trading on Tuesday . The stock traded as high as $513.66 and last traded at $504.20. Approximately 16,832,402 shares were traded during mid-day trading, a decline of 50% from the average session volume of 33,550,699 shares. The stock had previously closed at $493.41.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Piper Sandler maintained an Overweight rating and a $600 price target following discussions with investors ahead of AMD’s third-quarter quiet period. The target implies continued confidence in AI accelerators, server CPUs and market-share gains. Why is AMD stock gaining today?
• Positive Sentiment: AMD and SiFive demonstrated AMD’s ROCm software running on a RISC-V data-center platform. The collaboration could broaden AMD’s software ecosystem and support adoption of its accelerators beyond traditional server architectures. SiFive and AMD Collaborate to Optimize AMD ROCm on RISC-V Datacenter Servers
• Positive Sentiment: Several market commentaries argue that AMD may be closing the AI-chip gap with Nvidia, helped by hyperscaler demand, AI accelerator deployments and future inference workloads. A broader data-center buildout could continue even if spending on frontier-model training moderates. Prediction: AMD Could Be Closing the Gap in the AI Chip Race
• Neutral Sentiment: President Trump’s rejection of calls to slow frontier-AI development helped ease concerns that regulation or safety debates would sharply reduce infrastructure investment. However, the immediate effect on AMD’s actual revenue remains uncertain. Donald Trump Rejects Calls for AI Slowdown
• Negative Sentiment: AMD remains highly valued after a surge of more than 200% over the past year. Its elevated earnings multiple leaves the stock vulnerable if data-center expansion, AI accelerator demand or execution falls short of aggressive expectations.
• Negative Sentiment: Analysts continue to expect Nvidia to remain ahead through 2028, highlighting competitive pressure in AI chips and software. Separately, CEO Lisa Su’s sale of shares under a pre-arranged Rule 10b5-1 plan may weigh on sentiment, even though it does not necessarily signal weaker business prospects. Nvidia Will Still Beat AMD Through 2028

Analyst Upgrades and Downgrades

AMD has been the subject of several research analyst reports. Bank of America boosted their price objective on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. BMO Capital Markets initiated coverage on Advanced Micro Devices in a report on Thursday, August 20th. They issued an “outperform” rating and a $550.00 target price on the stock. The Goldman Sachs Group lifted their price target on Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a research note on Monday, July 6th. JPMorgan Chase & Co. boosted their price target on Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Finally, Wall Street Zen upgraded Advanced Micro Devices from a “hold” rating to a “buy” rating in a research report on Saturday, August 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Advanced Micro Devices currently has an average rating of “Moderate Buy” and a consensus price target of $565.12.

Advanced Micro Devices Trading Up 2.2%

The business has a fifty day simple moving average of $494.57 and a 200-day simple moving average of $407.26. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The firm has a market cap of $823.09 billion, a price-to-earnings ratio of 129.61, a PEG ratio of 5.35 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business’s revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the firm posted $0.48 earnings per share. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Forrest Norrod sold 17,261 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $459.95, for a total transaction of $7,939,196.95. Following the sale, the executive vice president directly owned 373,317 shares in the company, valued at $171,707,154.15. This trade represents a 4.42% decrease in their position. The transaction 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 Jean X. Hu sold 15,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The stock was 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 in the company, valued at $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 196,577 shares of company stock worth $96,850,690 over the last quarter. Insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently modified their holdings of the business. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices during the fourth quarter valued at approximately $27,000. Cornerstone Financial Management LLC bought a new position in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth $30,000. JNBA Financial Advisors increased its stake in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Finally, Graney & King LLC bought a new stake in shares of Advanced Micro Devices during the 1st quarter valued at $31,000. Institutional investors own 71.34% of the company’s stock.

About Advanced Micro Devices

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.