Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.7% – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 2.7% on Friday . The company traded as high as $559.91 and last traded at $559.82. 31,239,254 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 33,441,074 shares. The stock had previously closed at $545.09.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD shares rose more than 6% in the latest session as the post-FOMC market rebound revived interest in AI and semiconductor stocks. The move suggests investors are viewing AMD as a leading alternative to NVIDIA in AI accelerators, with capital rotating into a broader group of chipmakers. 2 Stocks Breaking Out Post-FOMC With One Thing in Common
• Positive Sentiment: Management continues to signal that AI adoption is in its early stages, with demand shifting toward inference and system-level solutions. AMD’s AI stack plans and ROCm support for SiFive’s RISC-V data-center servers could expand its software and hardware ecosystem. AMD Says AI Adoption Is Still Early
• Positive Sentiment: Reports that AMD may raise GPU and CPU prices by roughly 10%—partly reflecting higher infrastructure and manufacturing costs—have increased expectations for stronger pricing power and potentially better margins. Nebius’s planned cloud price increases further suggest that AI-computing demand remains strong. AMD Stock Soars on Reports of GPU and CPU Price Increases
• Positive Sentiment: AMD is reportedly among the companies that have secured most of next year’s high-bandwidth memory supply, helping support future AI accelerator shipments amid a constrained HBM market. A desktop AI supercomputer launched with AMD Ryzen AI Max processors also provides additional evidence of product adoption beyond data centers. The HBM Bottleneck
• Neutral Sentiment: Analysts and technical commentators remain constructive, citing projected earnings growth and breakout momentum. However, AMD trades at a demanding valuation near the upper end of recent price targets, leaving less room for disappointment and making execution of its AI product ramp critical. XLK, Oracle and AMD Forecast
• Negative Sentiment: Executive Vice President Forrest Norrod sold 17,261 shares for approximately $8.7 million under a pre-arranged Rule 10b5-1 plan. Broader data also shows substantial AMD insider selling and no reported insider purchases in the past six months, a potential sentiment concern even though the transactions may be scheduled. SEC Form 4 Filing
• Negative Sentiment: Huawei’s launch of more than 10 AI chip products highlights increasing competitive pressure, while higher TSMC and AI infrastructure costs could limit the benefit of any price increases if AMD cannot pass them fully to customers. Huawei Takes Aim at NVIDIA and AMD

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Benchmark boosted their target price on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the stock a “buy” rating in a research report on Wednesday, July 22nd. Weiss Ratings restated a “hold (c+)” rating on shares of Advanced Micro Devices in a research note on Monday, August 3rd. KeyCorp set a $650.00 price target on Advanced Micro Devices in a research report on Wednesday, August 5th. Rosenblatt Securities increased their price objective on Advanced Micro Devices from $665.00 to $700.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Finally, Melius Research set a $660.00 target price on shares of Advanced Micro Devices in a research report on Friday, July 24th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $565.12.

Advanced Micro Devices Stock Up 2.7%

The company has a market capitalization of $913.89 billion, a price-to-earnings ratio of 143.91, a P/E/G ratio of 5.31 and a beta of 2.48. The business has a fifty day simple moving average of $494.21 and a two-hundred day simple moving average of $413.93. 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 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 return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same period last year, the business earned $0.48 earnings per share. The business’s revenue was up 50.1% on a year-over-year basis. Equities analysts expect that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Forrest Norrod sold 17,261 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $503.05, for a total value of $8,683,146.05. Following the completion of the sale, the executive vice president directly owned 363,317 shares in the company, valued at approximately $182,766,616.85. This trade represents a 4.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% 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. Insiders sold 213,838 shares of company stock worth $105,533,836 over the last 90 days. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Large investors have recently modified their holdings of the stock. IKE Capital LLC acquired a new position in Advanced Micro Devices during the 2nd quarter worth $473,000. Anchor Investment Management LLC increased its stake in shares of Advanced Micro Devices by 6.7% in the 2nd quarter. Anchor Investment Management LLC now owns 8,563 shares of the semiconductor manufacturer’s stock valued at $4,974,000 after buying an additional 539 shares during the period. Revere Asset Management Inc bought a new stake in shares of Advanced Micro Devices during the second quarter worth $369,000. Bullseye Investment Management LLC bought a new stake in shares of Advanced Micro Devices during the second quarter worth $44,000. Finally, Smith Chas P & Associates PA Cpas bought a new position in Advanced Micro Devices in the second quarter valued at about $277,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.