Advanced Micro Devices (NASDAQ:AMD) Cut to Hold at Zacks Research

Advanced Micro Devices (NASDAQ:AMD) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, Zacks reports.

Several other research analysts have also recently weighed in on the stock. Sanford C. Bernstein reiterated an “outperform” rating and issued a $650.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. HSBC cut shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and upped their target price for the company from $335.00 to $340.00 in a report on Monday, May 4th. Wolfe Research set a $450.00 target price on shares of Advanced Micro Devices and gave the stock an “outperform” rating in a report on Monday, June 15th. Wedbush restated an “outperform” rating and set a $600.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Stifel Nicolaus lifted their price target on Advanced Micro Devices from $450.00 to $635.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $553.72.

Advanced Micro Devices Price Performance

Shares of NASDAQ:AMD opened at $457.06 on Tuesday. The firm has a market capitalization of $746.14 billion, a PE ratio of 117.50, a PEG ratio of 4.76 and a beta of 2.48. 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 business’s 50 day moving average is $501.61 and its 200-day moving average is $390.93. Advanced Micro Devices has a 1-year low of $149.22 and a 1-year high of $584.73.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the prior year, the firm earned $0.48 earnings per share. The company’s quarterly revenue was up 50.1% compared to the same quarter last year. Sell-side analysts predict that Advanced Micro Devices will post 6.44 earnings per share for the current year.

Insider Activity

In other news, EVP Mark D. Papermaster sold 28,811 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the transaction, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 15,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $480.94, for a total value of $7,214,100.00. Following the completion of the transaction, the chief executive officer owned 3,102,156 shares of the company’s stock, valued at $1,491,950,906.64. This represents a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 232,577 shares of company stock valued at $109,509,170. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC increased its position in shares of Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after buying an additional 29,438 shares during the period. Revolve Wealth Partners LLC raised its position in shares of 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 worth $1,001,000 after acquiring an additional 234 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in shares of 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 purchasing an additional 2,970 shares during the period. United Bank grew its stake in Advanced Micro Devices by 22.0% during the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock worth $1,881,000 after purchasing an additional 2,392 shares during the period. Finally, Schnieders Capital Management LLC. increased its holdings in Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after purchasing an additional 7,228 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD’s AI infrastructure collaboration with Cisco and Saudi Arabia’s HUMAIN is gaining traction: MI355X-based systems are reportedly live and serving customers, with plans for an additional 250 megawatts beginning in 2027 and as much as 1 gigawatt by 2030. The buildout could create a significant long-term data-center revenue opportunity. AMD Saudi Arabia AI infrastructure
• Positive Sentiment: Several bullish commentaries argue that AMD could benefit from the next phase of AI spending, particularly inference workloads and server CPUs. One forecast sees the company potentially reaching a $2 trillion valuation by 2030, while analysts cited elsewhere see additional upside from current levels. AMD $2 trillion forecast
• Positive Sentiment: Tiger Global reportedly opened an AMD position while reducing its Alphabet stake, suggesting some institutional investors are rotating toward AI-chip exposure. Tiger Global AMD position
• Neutral Sentiment: AMD remains above a widely watched support level near $450, but technical coverage says higher U.S. interest rates are weighing on high-growth technology stocks and limiting near-term momentum. AMD technical levels and rates
• Negative Sentiment: J.P. Morgan reportedly views AMD as facing execution challenges relative to Nvidia. Nvidia’s investment in MediaTek and continued efforts to defend its AI-chip ecosystem also reinforce concerns that AMD must execute effectively to gain share. J.P. Morgan Nvidia versus AMD
• Negative Sentiment: Investors are also taking profits after AMD’s substantial 2026 advance. Commentary highlights valuation pressure, with the stock trading at a very high earnings multiple, while ARK Invest has continued reducing its AMD position. ARK Invest reduces AMD shares

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.