Advanced Micro Devices (NASDAQ:AMD) Shares Up 1.9% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 1.9% during mid-day trading on Tuesday. The company traded as high as $606.20 and last traded at $605.53. Approximately 17,640,212 shares traded hands during trading, a decline of 45% from the average daily volume of 32,342,287 shares. The stock had previously closed at $594.24.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD’s Helion rack-scale architecture for agentic AI, developed with an open and modular design, could strengthen its position in data-center infrastructure and help narrow Nvidia’s AI inference advantage through software improvements. What Does Advanced Micro Devices AMD Helion Mean For Its AI Ambitions?
• Positive Sentiment: Analysts and industry commentary continue to point to strong AI accelerator, data-center processor and agentic-AI demand as long-term growth drivers for AMD. AMD is also viewed by some analysts as a potential beneficiary of expanding AI compute requirements. 3 AI Infrastructure Stocks to Buy Right Now and Hold for 10 Years
• Neutral Sentiment: AMD’s credit support for Fermi’s 222-megawatt Texas power lease may expand its exposure to AI data-center infrastructure, but Fermi still faces liquidity concerns and a pending TensorWave lease decision. AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle
• Negative Sentiment: Rising Treasury yields and borrowing costs are pressuring high-growth technology valuations. Investors are also worried that debt and financing-market stress could slow spending on massive AI data centers, prompting a broad semiconductor sell-off that has affected AMD, Nvidia, Intel and Micron despite strong underlying AI demand. Rate Pressure vs. AI Demand: Rising Treasury Yields Trigger Nvidia AMD Slump
• Negative Sentiment: After a substantial year-to-date rally, AMD’s premium valuation leaves the stock vulnerable to profit-taking and concerns about execution, supply constraints, competition and whether AI customers can generate adequate returns. Reports of extensive insider selling add another cautionary signal. Advanced Micro Devices Stock Surges 183% YTD: Time to Hold or Exit?

Analyst Ratings Changes

Several equities research analysts have issued reports on AMD shares. Cantor Fitzgerald reiterated an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. Piper Sandler began coverage on shares of Advanced Micro Devices in a research report on Tuesday, September 15th. They set an “overweight” rating and a $600.00 price target on the stock. Robert W. Baird set a $1,250.00 target price on shares of Advanced Micro Devices in a research report on Friday, July 24th. Mizuho boosted their target price on Advanced Micro Devices from $580.00 to $705.00 and gave the company an “outperform” rating in a research note on Tuesday, October 6th. Finally, Melius Research set a $660.00 price target on Advanced Micro Devices in a research note on Friday, July 24th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $603.51.

Advanced Micro Devices Price Performance

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The stock has a 50 day simple moving average of $534.65 and a 200-day simple moving average of $469.28. The firm has a market cap of $918.37 billion, a PE ratio of 144.79, a price-to-earnings-growth ratio of 6.26 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results 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 company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the prior year, the firm earned $0.48 earnings per share. Advanced Micro Devices’s revenue was up 50.1% on a year-over-year basis. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.45 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Mark Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 business’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $506.80, for a total value of $35,476,000.00. Following the sale, the chief executive officer owned 3,032,156 shares in the company, 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. In the last quarter, insiders sold 213,838 shares of company stock worth $105,533,836. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently modified their holdings of AMD. Triasima Portfolio Management inc. bought a new position in Advanced Micro Devices in the 3rd quarter valued at $3,073,000. Brindle & Bay Financial Advisors LLC raised its position in shares of Advanced Micro Devices by 27.8% during the third quarter. Brindle & Bay Financial Advisors LLC now owns 1,086 shares of the semiconductor manufacturer’s stock worth $664,000 after purchasing an additional 236 shares during the period. RDA Financial Network raised its holdings in Advanced Micro Devices by 121.7% during the 3rd quarter. RDA Financial Network now owns 2,033 shares of the semiconductor manufacturer’s stock worth $1,244,000 after buying an additional 1,116 shares during the period. Ninety One UK Ltd lifted its stake in Advanced Micro Devices by 834.2% in the third quarter. Ninety One UK Ltd now owns 4,045 shares of the semiconductor manufacturer’s stock valued at $2,475,000 after buying an additional 3,612 shares in the last quarter. Finally, Charles Schwab Trust Co bought a new stake in Advanced Micro Devices in the 3rd quarter valued at $367,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.