Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 4.9% – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares shot up 4.9% during trading on Tuesday . The stock traded as high as $481.50 and last traded at $479.18. Approximately 18,881,404 shares traded hands during trading, a decline of 46% from the average daily volume of 34,916,367 shares. The stock had previously closed at $456.74.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AI demand and strategic partnerships remain strong: Nutanix said bookings tied to cloud and agentic-AI initiatives are growing quickly, highlighting AMD’s effort to pair its chips with software capable of deploying enterprise AI and inference workloads. The relationship could help AMD offer a broader alternative to Nvidia’s ecosystem. Nutanix and AMD partnership
• Positive Sentiment: Product and financial momentum support the long-term case: AMD’s latest quarter included approximately $11.5 billion in revenue, up 50% year over year, with data-center revenue more than doubling to $6.7 billion. The MI455X accelerator and Helios rack system, along with the ROCm 10 software release, are intended to improve AMD’s competitiveness in AI computing. AMD ROCm 10 release
• Positive Sentiment: Analyst sentiment is favorable: A recent upgrade to Strong Buy and multiple bullish price targets reflect expectations that AMD can gain share from Intel and narrow the gap with Nvidia as inference and agentic-AI demand expands. AMD Strong Buy upgrade
• Neutral Sentiment: Nvidia’s results lift the sector but sharpen competitive concerns: Nvidia’s forecast for roughly 70% revenue growth in fiscal 2028 reinforced broad AI infrastructure demand, benefiting semiconductor stocks generally. However, the report also drew investor attention to Nvidia’s dominant position and ongoing competition for AMD. AMD and Nvidia after earnings
• Negative Sentiment: ARK Invest is reallocating away from AMD: Cathie Wood’s ARK reportedly sold about $18.2 million of AMD while investing in Broadcom and other AI-chip companies. The move may reinforce concerns that AMD’s recent rally has become extended relative to competing opportunities. ARK Invest sells AMD
• Negative Sentiment: Insider selling and policy risks add pressure: EVP Forrest Norrod sold 17,261 shares worth approximately $7.9 million under a pre-arranged Rule 10b5-1 plan. Potential semiconductor tariffs, export restrictions and elevated valuation could also weigh on investor confidence. AMD insider sale SEC filing

Wall Street Analyst Weigh In

A number of brokerages have recently commented on AMD. Loop Capital upgraded shares of Advanced Micro Devices to a “strong-buy” rating in a research report on Tuesday, June 16th. Wolfe Research set a $450.00 price target on shares of Advanced Micro Devices and gave the stock an “outperform” rating in a research report on Monday, June 15th. TD Cowen reaffirmed a “buy” rating on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Oppenheimer lowered shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a research note on Wednesday, May 6th. Finally, Susquehanna boosted their target price on Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “positive” rating in a report on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and a consensus price target of $553.72.

Advanced Micro Devices Trading Down 1.3%

The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The business has a 50-day simple moving average of $508.39 and a 200-day simple moving average of $381.97. The company has a market cap of $774.86 billion, a PE ratio of 122.02 and a beta of 2.48.

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, 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 business had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the firm posted $0.48 earnings per share. The company’s revenue was up 50.1% on a year-over-year basis. On average, analysts predict that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Forrest Eugene Norrod sold 17,261 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $459.95, for a total value of $7,939,196.95. Following the completion of the transaction, the executive vice president owned 373,317 shares in the company, valued at approximately $171,707,154.15. The trade was a 4.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 that occurred on 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 sale, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. The trade was a 2.23% 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 228,024 shares of company stock valued at $107,851,304. 0.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Joseph Group Capital Management acquired a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $25,000. Sarver Vrooman Wealth Advisors acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $27,000. Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices during the 4th quarter worth $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices during the 4th quarter worth $30,000. Finally, JNBA Financial Advisors grew its stake in shares of Advanced Micro Devices by 142.9% during the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 30 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

About Advanced Micro Devices

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.