Advanced Micro Devices (NASDAQ:AMD) Trading 7.7% Higher – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price rose 7.7% on Tuesday . The stock traded as high as $584.73 and last traded at $580.91. 34,261,521 shares traded hands during trading, a decline of 9% from the average daily volume of 37,716,441 shares. The stock had previously closed at $539.49.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Wells Fargo raised its price target on AMD and kept an Overweight rating, citing stronger server CPU trends and improving visibility into AI-driven demand.
• Positive Sentiment: Cantor Fitzgerald lifted its AMD target to a Street-high $700, adding to the bullish analyst momentum around the stock.
• Positive Sentiment: AMD is benefiting from a broader semiconductor rally, with chip stocks and tech names advancing on a risk-on tone in the market.
• Positive Sentiment: Options activity suggests traders are positioning for further upside, with heavy call buying in AMD ahead of its early-August earnings report.
• Neutral Sentiment: Recent articles continue to frame AMD as a major AI infrastructure beneficiary, including discussion of its CPU role in next-generation data center buildouts.
• Negative Sentiment: Some commentary notes that AMD has run hard over the past year and may be getting extended technically, which could limit upside in the near term.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on AMD. JPMorgan Chase & Co. upped their price target on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Northland Securities reissued a “market perform” rating and set a $260.00 price objective on shares of Advanced Micro Devices in a research note on Monday, April 27th. Oppenheimer downgraded Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a research report on Wednesday, May 6th. Stifel Nicolaus upped their target price on Advanced Micro Devices from $320.00 to $450.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Finally, Evercore reiterated an “outperform” rating and set a $579.00 target price on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $448.78.

Advanced Micro Devices Stock Up 7.7%

The firm has a market cap of $947.23 billion, a price-to-earnings ratio of 190.46, a PEG ratio of 1.54 and a beta of 2.50. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The firm has a fifty day moving average price of $450.43 and a 200-day moving average price of $298.88.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same period in the prior year, the firm posted $0.96 earnings per share. The business’s quarterly revenue was up 37.8% compared to the same quarter last year. As a group, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Activity at Advanced Micro Devices

In other news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the transaction, the chief executive officer directly owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This represents a 4.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the completion of the sale, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This represents a 5.66% 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. Over the last 90 days, insiders have sold 378,032 shares of company stock worth $161,876,596. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently made changes to their positions in the stock. Jefferies Financial Group Inc. raised its stake in shares of Advanced Micro Devices by 6,228.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after purchasing an additional 303,154 shares during the period. Williamson Legacy Group LLC acquired a new stake in Advanced Micro Devices during the 4th quarter valued at $1,118,000. Thoroughbred Financial Services LLC increased its stake in Advanced Micro Devices by 8.8% during the 4th quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock worth $7,030,000 after buying an additional 2,654 shares during the period. Valtinson Bruner Financial Planning LLC purchased a new stake in Advanced Micro Devices during the 4th quarter worth $1,523,000. Finally, Weaver Consulting Group acquired a new position in Advanced Micro Devices in the 4th quarter worth $246,000. 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 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.