Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 1% Following Earnings Beat

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares shot up 1% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $514.61 and last traded at $488.78. Approximately 50,413,852 shares were traded during mid-day trading, an increase of 59% from the average session volume of 31,793,707 shares. The stock had previously closed at $483.90.

The semiconductor manufacturer reported $2.09 earnings per share for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The company had revenue of $13.38 billion during the quarter, compared to analyst estimates of $13.10 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 44.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.20 EPS.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD beat third-quarter expectations, reporting $2.09 in adjusted earnings per share and $13.38 billion in revenue. Data Center revenue surged 97% year over year, led by AI GPU and EPYC server CPU demand. Reuters report on AMD results
• Positive Sentiment: Management forecast about $17 billion in fourth-quarter revenue and signaled more than 80% revenue growth in 2027, with its AI Data Center business expected to more than double. The outlook supports expectations that AI demand can sustain rapid growth. AMD outlook and earnings call highlights
• Positive Sentiment: Several analysts raised price targets after the results, citing AI demand and server CPU opportunities. Piper Sandler lifted its target to $650, while JPMorgan raised its target to $575 but maintained a neutral rating. Analyst views on AMD’s 2027 outlook
• Negative Sentiment: Investors are also focused on weaker cash generation despite record sales: free cash flow reportedly fell to about 4% of revenue, while inventory and spending tied to AI growth may weigh on near-term cash conversion. Analysis of AMD’s free cash flow
• Negative Sentiment: Execution risks remain: AMD faces high-bandwidth memory supply constraints and competition from Intel in server CPUs and Broadcom’s custom AI chips. Some investors also worry that political shifts could slow AI infrastructure spending. Analysis of AMD’s competitive threats

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on AMD shares. William Blair reiterated a “market perform” rating on shares of Advanced Micro Devices in a report on Wednesday. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Advanced Micro Devices in a report on Wednesday. Citigroup lifted their price target on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the stock a “buy” rating in a research note on Tuesday, October 6th. Mizuho lowered their price objective on shares of Advanced Micro Devices from $705.00 to $610.00 and set an “outperform” rating on the stock in a research report on Wednesday. Finally, Wells Fargo & Company cut their target price on shares of Advanced Micro Devices from $700.00 to $650.00 and set an “overweight” rating for the company in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices has an average rating of “Moderate Buy” and a consensus target price of $619.30.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the completion of the transaction, the senior vice president directly owned 26,623 shares in the company, valued at $13,010,393.87. This represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through 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 company’s stock in a transaction 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 completion of the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at $76,316,924.32. This represents a 8.52% 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 a total of 231,100 shares of company stock valued at $114,867,400 in the last three months. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds have recently made changes to their positions in the business. AEGON ASSET MANAGEMENT UK Plc boosted its stake in Advanced Micro Devices by 36.4% in the third quarter. AEGON ASSET MANAGEMENT UK Plc now owns 193,341 shares of the semiconductor manufacturer’s stock valued at $118,278,000 after acquiring an additional 51,619 shares during the last quarter. Gryphon Financial Partners LLC raised its position in shares of Advanced Micro Devices by 1.3% during the 3rd quarter. Gryphon Financial Partners LLC now owns 7,940 shares of the semiconductor manufacturer’s stock valued at $4,858,000 after acquiring an additional 101 shares during the last quarter. Fairscale Capital LLC raised its position in shares of Advanced Micro Devices by 6.6% during the 3rd quarter. Fairscale Capital LLC now owns 581 shares of the semiconductor manufacturer’s stock valued at $355,000 after acquiring an additional 36 shares during the last quarter. Vestor Capital LLC bought a new stake in shares of Advanced Micro Devices during the 3rd quarter valued at $120,730,000. Finally, Kestra Investment Management LLC lifted its stake in shares of Advanced Micro Devices by 76.7% in the 3rd quarter. Kestra Investment Management LLC now owns 8,191 shares of the semiconductor manufacturer’s stock valued at $5,011,000 after purchasing an additional 3,555 shares during the period. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock 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 company has a market cap of $797.92 billion, a price-to-earnings ratio of 125.65, a P/E/G ratio of 4.79 and a beta of 2.49. The stock has a 50 day moving average price of $548.70 and a two-hundred day moving average price of $411.73.

About Advanced Micro Devices

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

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