Advanced Micro Devices (NASDAQ:AMD) Trading Up 1% – Still a Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 1% during trading on Wednesday . The company traded as high as $532.50 and last traded at $512.48. Approximately 26,878,874 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 38,014,523 shares. The stock had previously closed at $507.29.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Citi upgraded AMD to Buy and raised its price target to $575, citing major upside from potential GPU sales at Meta and strong growth in the agentic AI server CPU market.
• Positive Sentiment: Bernstein raised price targets across chip stocks, including AMD, on what it calls a “CPU renaissance,” which supports the view that demand for server CPUs is improving.
• Positive Sentiment: AMD and Rackspace signed a definitive agreement to deploy 30 MW of AMD-based AI compute across Rackspace’s global data centers, expanding AMD’s footprint in enterprise AI infrastructure.
• Positive Sentiment: AMD also announced a partnership with OQC and JPMorganChase to launch a quantum-AI research platform in London, adding another high-profile AI collaboration.
• Positive Sentiment: Several commentary pieces highlighted AMD’s strong year-to-date run, new chip launches expected later this year, and growing customer deployments, which kept sentiment constructive around the stock.
• Neutral Sentiment: Reports that TSMC capacity is tightening and some buyers are looking at Samsung foundry alternatives may help the broader chip supply chain, but the near-term impact on AMD is less direct.
• Neutral Sentiment: Jim Cramer said he likes AMD and called it “fantastic,” but he still preferred NVIDIA, making this more of a sentiment note than a clear new fundamental catalyst.
• Negative Sentiment: Some articles warned that AMD’s rally may be becoming crowded after a sharp run-up, and one noted Ark Invest continued trimming its position, which could temper enthusiasm at the margin.

Analyst Ratings Changes

A number of research analysts recently commented on AMD shares. Benchmark increased their price target on Advanced Micro Devices from $325.00 to $485.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Needham & Company LLC raised Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Wells Fargo & Company increased their target price on Advanced Micro Devices from $345.00 to $505.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. KeyCorp increased their target price on Advanced Micro Devices from $330.00 to $530.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Finally, Morgan Stanley increased their target price on Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Advanced Micro Devices has an average rating of “Moderate Buy” and a consensus target price of $430.68.

Advanced Micro Devices Trading Up 1.0%

The company has a market capitalization of $835.65 billion, a price-to-earnings ratio of 168.03, a PEG ratio of 1.60 and a beta of 2.50. The firm has a 50-day moving average price of $398.80 and a 200-day moving average price of $279.06. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (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 company had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same period last year, the firm earned $0.96 EPS. The firm’s revenue for the quarter was up 37.8% on a year-over-year basis. As a group, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the completion of the sale, the chief executive officer directly owned 2,896,899 shares of the company’s stock, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the sale, the director directly owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This represents a 9.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 378,032 shares of company stock worth $161,876,596. 0.50% of the stock is owned by insiders.

Institutional Trading of Advanced Micro Devices

A number of institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Advanced Micro Devices by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock valued at $33,949,256,000 after purchasing an additional 2,525,109 shares during the last quarter. State Street Corp increased its stake in shares of Advanced Micro Devices by 1.5% in the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock worth $16,044,712,000 after purchasing an additional 1,094,835 shares during the period. Geode Capital Management LLC increased its stake in shares of Advanced Micro Devices by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock worth $8,015,897,000 after purchasing an additional 287,525 shares during the period. Norges Bank bought a new position in shares of Advanced Micro Devices in the fourth quarter worth about $4,929,312,000. Finally, Price T Rowe Associates Inc. MD increased its stake in shares of Advanced Micro Devices by 0.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock worth $4,352,864,000 after purchasing an additional 55,969 shares during the period. Institutional investors and hedge funds own 71.34% of the company’s stock.

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.