Advanced Micro Devices (NASDAQ:AMD) Shares Up 3.2% on Analyst Upgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price shot up 3.2% during trading on Wednesday after Susquehanna raised their price target on the stock from $620.00 to $650.00. Susquehanna currently has a positive rating on the stock. Advanced Micro Devices traded as high as $579.18 and last traded at $578.44. 18,355,544 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 31,698,275 shares. The stock had previously closed at $560.26.

Other analysts have also issued reports about the company. Sanford C. Bernstein restated an “outperform” rating and issued a $650.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Truist Financial increased their price target on Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Wells Fargo & Company lifted their price objective on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. KeyCorp set a $650.00 price objective on Advanced Micro Devices in a research note on Wednesday, August 5th. Finally, Stifel Nicolaus boosted their price objective on Advanced Micro Devices from $635.00 to $700.00 and gave the company a “buy” rating in a research note on Monday, October 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices currently has an average rating of “Moderate Buy” and an average price target of $607.57.

Insider Buying and Selling

In related news, EVP Forrest Norrod sold 17,262 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the transaction, the executive vice president owned 353,317 shares of the company’s stock, valued at approximately $191,038,501.90. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the transaction, the executive vice president directly owned 1,261,461 shares of the company’s stock, valued at approximately $595,245,602.07. This 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 231,100 shares of company stock valued at $114,867,400 in the last three months. Insiders own 0.50% of the company’s stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Expanded Meta partnership strengthens AI demand visibility. AMD will invest $1 billion in Meta’s equity offering while supplying EPYC processors, Instinct GPUs and Helios rack-scale systems. Initial Helios systems are being tested at Meta, and the companies are targeting infrastructure deployments at gigawatt scale. Meta reportedly has agreements covering as much as 6 gigawatts of AMD GPU capacity. AMD and Meta Advance Strategic Partnership
• Positive Sentiment: Analysts raised price targets ahead of earnings. Susquehanna increased its target to $650 from $620 and maintained a positive rating, while Aletheia Capital raised its target to $800 from $700 with a Buy rating. Analysts cited improving data-center fundamentals, server CPU demand and expanding adoption of AMD’s AI accelerators. Susquehanna Adjusts AMD Price Target
• Positive Sentiment: Sector momentum added support. AMD participated in a broader chip-stock advance after strong results from memory-chip maker SK Hynix, reinforcing expectations that AI infrastructure spending remains robust. Wall Street is forecasting continued revenue and profit growth in AMD’s third-quarter results. Chip Stocks Lead Sector Higher
• Neutral Sentiment: November 3 earnings are the next major catalyst. Investors will focus on data-center and AI revenue, gross margins, supply constraints and management’s outlook. Options markets imply a potentially sizable post-earnings move.
• Negative Sentiment: Valuation and supply-chain risks remain significant. Commentary highlighted AMD’s elevated valuation and argued that its stock may have advanced faster than fundamentals. Potential increases in TSMC’s advanced-packaging and wafer prices could pressure AMD’s margins. In addition, ARK Invest and AMD insiders have continued selling shares, while some investors have questioned whether chip suppliers investing in Meta creates circular-financing risk. TSMC Pricing Power and AI Supply Chain

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. DecisionPoint Financial LLC boosted its stake in Advanced Micro Devices by 79.2% during the third quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. purchased a new stake in shares of Advanced Micro Devices in the 3rd quarter valued at about $29,000. JNBA Financial Advisors raised its holdings in shares of Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after acquiring an additional 30 shares in the last quarter. Graney & King LLC purchased a new stake in shares of Advanced Micro Devices in the 1st quarter valued at about $31,000. Finally, Main Street Group LTD bought a new stake in shares of Advanced Micro Devices during the 1st quarter valued at about $33,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Trading Up 3.2%

The stock has a market cap of $944.29 billion, a P/E ratio of 148.70, a P/E/G ratio of 5.30 and a beta of 2.45. 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 stock has a 50-day moving average price of $543.70 and a 200-day moving average price of $404.03.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion during 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%. Advanced Micro Devices’s revenue was up 50.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.48 earnings per share. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.50 EPS for the current year.

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.