Advanced Micro Devices (NASDAQ:AMD) Trading Up 4% – Should You Buy?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) shot up 4% during trading on Wednesday . The company traded as high as $546.44 and last traded at $542.52. 28,778,548 shares were traded during mid-day trading, a decline of 25% from the average session volume of 38,604,129 shares. The stock had previously closed at $521.54.

Advanced Micro Devices News Summary

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

• Negative Sentiment: Broadcom’s revenue warning and muted AI-chip guidance sparked a sector-wide pullback, weighing on AMD and other semiconductor names. Chip Stocks Tumble: AMD, Nvidia, Micron Decline Following Broadcom’s Revenue Warning
• Negative Sentiment: AMD was also hit by broader technology weakness as markets rotated out of high-flying AI stocks and risk appetite faded. AMD, Broadcom, Quantinuum, and More Stocks That Explain Today’s Market
• Negative Sentiment: Zacks Research downgraded AMD from strong-buy to hold, adding another modest headwind for sentiment. Zacks downgrade report
• Neutral Sentiment: Despite the pullback, recent commentary still highlights strong underlying demand tied to agentic AI, with Barclays lifting its price target to $665 and analysts noting continued CPU and data-center momentum. CPU Demand Rapidly Rising Amid Expanding Agentic AI, Says Barclays, Raises PT On Advanced Micro (AMD) To $665

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AMD. Wolfe Research began coverage on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. They issued a “peer perform” rating for the company. HSBC downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and increased their price objective for the stock from $335.00 to $340.00 in a research note on Monday, May 4th. BTIG Research raised Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. JPMorgan Chase & Co. upped their target price on Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Finally, Truist Financial set a $478.00 price target on Advanced Micro Devices in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and thirteen have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $419.86.

Advanced Micro Devices Price Performance

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $808.10 billion, a price-to-earnings ratio of 162.44, a P/E/G ratio of 1.60 and a beta of 2.50. The company’s 50 day moving average is $353.43 and its 200-day moving average is $263.57.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data 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 firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter in the prior year, the company earned $0.96 earnings per share. The business’s revenue for the quarter was up 37.8% compared to the same quarter last year. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $350.00, for a total value of $10,962,000.00. Following the transaction, the executive vice president directly owned 1,236,037 shares of the company’s stock, valued at $432,612,950. This represents a 2.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the firm’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the sale, the executive vice president owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 339,532 shares of company stock worth $119,504,341. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Stillwater Private Wealth LLC acquired a new stake in Advanced Micro Devices during the first quarter worth approximately $454,000. Parallel Advisors LLC grew its position in shares of Advanced Micro Devices by 12.9% in the first quarter. Parallel Advisors LLC now owns 39,390 shares of the semiconductor manufacturer’s stock valued at $8,013,000 after purchasing an additional 4,516 shares during the last quarter. NewEdge Advisors LLC increased its stake in shares of Advanced Micro Devices by 1.3% during the first quarter. NewEdge Advisors LLC now owns 692,442 shares of the semiconductor manufacturer’s stock worth $140,863,000 after purchasing an additional 8,789 shares during the period. Dala Group LLC acquired a new stake in Advanced Micro Devices during the 1st quarter worth approximately $233,000. Finally, Cozad Asset Management Inc. boosted its stake in Advanced Micro Devices by 3.5% in the 1st quarter. Cozad Asset Management Inc. now owns 2,369 shares of the semiconductor manufacturer’s stock valued at $482,000 after purchasing an additional 80 shares during the period. Institutional investors and hedge funds own 71.34% of the company’s stock.

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.