Advanced Micro Devices (NASDAQ:AMD) Shares Up 6.7% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price shot up 6.7% during trading on Wednesday . The company traded as high as $304.25 and last traded at $303.46. 48,756,191 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 37,629,168 shares. The stock had previously closed at $284.49.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Stifel raised its price target to $320, signaling stronger Wall Street conviction that AMD can capture accelerating AI-driven demand; this upgrade is a major catalyst drawing institutional buying. Read More.
• Positive Sentiment: Broad AI-chip rally lifted AMD alongside peers as investors re-embrace the AI infrastructure trade, supporting momentum and sector flows into AMD shares. Read More.
• Positive Sentiment: AMD launched the Ryzen 9 9950X3D2 Dual Edition, a high-end consumer CPU refresh that supports near-term revenue and PR momentum in the PC segment. Product launches help justify bullish estimates for CPU cycles. Read More.
• Positive Sentiment: Analysts and outlets are lifting targets and highlighting record highs (e.g., Blockonomi reporting analyst target increases), reinforcing the narrative of upside tied to AI compute demand. Read More.
• Neutral Sentiment: Institutional inflows and momentum are being cited as drivers of the move, which can amplify short-term gains but may be less durable if fundamentals wobble. Read More.
• Neutral Sentiment: Several bullish deep-dive pieces argue AMD has a structural edge in CPUs/AI, but these are thesis pieces that support longer-term case rather than immediate catalysts. Read More.
• Negative Sentiment: Zacks warns AMD expects roughly a 200 bps sequential gross-margin decline in Q1 as one-time gains fade, China revenue softens and seasonality hits — a clear near-term profit-pressure risk that could temper valuations. Read More.
• Negative Sentiment: Valuation concerns are resurfacing: coverage (e.g., Forbes) questions sustainability of the stretched multiple after the run, which raises the risk of profit-taking if growth stumbles. Read More.
• Negative Sentiment: Comparisons to Nvidia highlight competitive risk — some outlets argue Nvidia is the superior AI infrastructure play and paint AMD as a capable but longer-term challenger, which could cap enthusiasm among some investors. Read More.
• Negative Sentiment: Some advisory pieces caution against chasing the move (downgrades/“don’t chase” commentary), underscoring downside risk if catalysts don’t translate into sustained beats. Read More.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on AMD. DA Davidson upgraded Advanced Micro Devices to a “hold” rating in a report on Friday, February 13th. Evercore restated an “outperform” rating and issued a $358.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, February 24th. UBS Group set a $310.00 price objective on Advanced Micro Devices in a report on Wednesday, February 4th. Rosenblatt Securities restated a “buy” rating and issued a $300.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, February 4th. Finally, KeyCorp restated an “overweight” rating and issued a $330.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $292.14.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.85 and a quick ratio of 2.01. The firm has a fifty day simple moving average of $215.21 and a 200 day simple moving average of $222.95. The company has a market cap of $494.74 billion, a price-to-earnings ratio of 114.51, a P/E/G ratio of 1.00 and a beta of 1.96.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 EPS for the quarter, beating the consensus estimate of $1.32 by $0.21. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The company had revenue of $10.27 billion for the quarter, compared to the consensus estimate of $9.65 billion. During the same quarter last year, the company posted $1.09 earnings per share. The company’s revenue for the quarter was up 34.1% compared to the same quarter last year. On average, sell-side analysts expect that Advanced Micro Devices, Inc. will post 5.75 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 27,109 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $275.00, for a total transaction of $7,454,975.00. Following the transaction, the executive vice president owned 1,267,357 shares in the company, valued at $348,523,175. This trade represents a 2.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $214.36, for a total value of $26,795,000.00. Following the transaction, the chief executive officer owned 3,152,476 shares in the company, valued at approximately $675,764,755.36. This trade represents a 3.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 273,352 shares of company stock worth $59,173,070. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently modified their holdings of AMD. Norges Bank acquired a new stake in shares of Advanced Micro Devices in the fourth quarter worth $4,929,312,000. Jennison Associates LLC grew its stake in shares of Advanced Micro Devices by 181.6% in the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after acquiring an additional 7,035,991 shares during the last quarter. Cardano Risk Management B.V. acquired a new stake in shares of Advanced Micro Devices in the fourth quarter worth $1,000,783,000. Wellington Management Group LLP grew its stake in shares of Advanced Micro Devices by 335.9% in the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock worth $784,330,000 after acquiring an additional 3,735,807 shares during the last quarter. Finally, Franklin Resources Inc. grew its stake in shares of Advanced Micro Devices by 340.1% in the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after acquiring an additional 3,669,054 shares during the last quarter. 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.