Zacks Research Downgrades Advanced Micro Devices (NASDAQ:AMD) to Hold

Advanced Micro Devices (NASDAQ:AMD) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Wednesday,Zacks.com reports.

A number of other analysts have also recently commented on the stock. Jefferies Financial Group cut shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. Morgan Stanley boosted their target price on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. KeyCorp boosted their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Northland Securities reissued a “market perform” rating and set a $260.00 target price on shares of Advanced Micro Devices in a research note on Monday, April 27th. Finally, Roth Mkm reissued a “buy” rating and set a $500.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and thirteen have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $419.86.

Advanced Micro Devices Stock Down 3.6%

Shares of NASDAQ AMD opened at $523.20 on Wednesday. The firm has a market cap of $853.13 billion, a price-to-earnings ratio of 171.54, a price-to-earnings-growth ratio of 1.60 and a beta of 2.50. The company’s 50-day simple moving average is $353.43 and its 200-day simple moving average is $263.57. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. Advanced Micro Devices has a 52-week low of $114.71 and a 52-week high of $546.44.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion during the quarter, compared to analysts’ expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company’s quarterly revenue was up 37.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.96 earnings per share. Equities analysts predict that Advanced Micro Devices will post 6.2 EPS for the current fiscal year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 31,320 shares of the business’s 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 in the company, valued at $432,612,950. The trade was a 2.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares in the company, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 339,532 shares of company stock worth $119,504,341 over the last ninety days. 0.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently bought and sold shares of the company. Stillwater Private Wealth LLC acquired a new position in Advanced Micro Devices in the 1st quarter valued at about $454,000. Parallel Advisors LLC boosted its holdings in Advanced Micro Devices by 12.9% in the 1st 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 boosted its holdings in Advanced Micro Devices by 1.3% in the 1st quarter. NewEdge Advisors LLC now owns 692,442 shares of the semiconductor manufacturer’s stock valued at $140,863,000 after purchasing an additional 8,789 shares during the last quarter. Dala Group LLC acquired a new position in Advanced Micro Devices in the 1st quarter valued at about $233,000. Finally, Cozad Asset Management Inc. raised its stake in shares of 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 acquiring an additional 80 shares during the period. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Barclays raised its price target on AMD to $665, reinforcing the bullish case that rising CPU demand tied to agentic AI could drive further upside. CPU Demand Rapidly Rising Amid Expanding Agentic AI, Says Barclays, Raises PT On Advanced Micro (AMD) To $665
• Positive Sentiment: Analysts remain constructive on AMD’s AI infrastructure role, with recent reports highlighting strong demand for EPYC and Instinct chips and continued institutional buying support. Why Is Advanced Micro (AMD) Up 28.8% Since Last Earnings Report?
• Positive Sentiment: TSMC reiterated that AI chip demand remains strong and supply will stay tight for years, a favorable backdrop for AMD’s foundry-dependent growth plans. TSMC CEO Warns Chip Supply Won’t Meet AI-Fueled Demand for Years
• Neutral Sentiment: AMD’s recent rally has left the stock extended, and technical commentary notes it is trading near highs with overbought conditions, which can amplify volatility. What Is Going On With AMD Stock On Thursday?
• Negative Sentiment: Broadcom’s disappointing AI guidance dragged down the semiconductor group and triggered short-term selling in AMD shares as investors reassessed the pace of AI demand. Broadcom rout hits Micron, AMD, others: AI demand, memory-chip cycle under focus
• Negative Sentiment: Sentiment was also tempered by reports of insider selling, including director Nora Denzel’s recent share sales near the stock’s highs, which may be viewed as profit-taking after a strong run. Advanced Micro Devices (NASDAQ:AMD) Director Nora Denzel Sells 1,821 Shares

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.