Advanced Micro Devices (NASDAQ:AMD) Trading Up 5.1% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was up 5.1% on Monday . The company traded as high as $494.97 and last traded at $490.33. Approximately 24,897,965 shares traded hands during mid-day trading, a decline of 35% from the average daily volume of 38,472,457 shares. The stock had previously closed at $466.38.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD continues to benefit from strong AI infrastructure demand, with reports pointing to surging data center revenue, growing EPYC and Instinct adoption, and potential upside from agentic AI workloads. Article Title
• Positive Sentiment: Wall Street remains broadly bullish on AMD, with recent price-target hikes suggesting investors still see meaningful upside despite the stock’s sharp rally this year. Article Title
• Neutral Sentiment: Several articles framed AMD’s recent pullback as part of a sector-wide rotation and valuation reset, rather than a company-specific deterioration. Article Title
• Negative Sentiment: AMD was hit by a wider chip-sector selloff, with reports citing weakness in semiconductor names and renewed caution around AI stock valuations. Article Title
• Negative Sentiment: Sentiment also softened after AMD invested $350 million in TensorWave, which some investors view as a circular-financing style AI deal similar to Nvidia’s CoreWeave structure. Article Title
• Negative Sentiment: On top of the sector weakness, articles flagged concerns about sustainability of the AI boom and rising insider selling, both of which may be weighing on investor confidence. Article Title

Analyst Ratings Changes

A number of equities analysts recently weighed in on AMD shares. Raymond James Financial started coverage on shares of Advanced Micro Devices in a report on Wednesday, May 6th. They issued a “market perform” rating on the stock. JPMorgan Chase & Co. boosted their price target on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Zacks Research downgraded shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Bank of America boosted their price target on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “buy” rating in a report on Wednesday, May 13th. Finally, Jefferies Financial Group cut Advanced Micro Devices from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and thirteen have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $419.86.

Advanced Micro Devices Stock Performance

The company’s fifty day moving average is $369.56 and its 200 day moving average is $268.77. The company has a market capitalization of $737.68 billion, a P/E ratio of 148.33, a P/E/G ratio of 1.44 and a beta of 2.50. 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 released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same period last year, the firm earned $0.96 EPS. Advanced Micro Devices’s revenue for the quarter was up 37.8% on a year-over-year basis. As a group, equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Activity

In other news, EVP Mark D. Papermaster sold 31,320 shares of the company’s stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the sale, the executive vice president directly owned 1,236,037 shares in the company, valued at $432,612,950. This represents a 2.47% decrease in their ownership of the stock. The sale was disclosed in a 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 Paul Darren Grasby sold 24,376 shares of the company’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the sale, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 332,032 shares of company stock valued at $117,967,816. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently bought and sold shares of the stock. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $25,000. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $27,000. Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices during the 1st quarter valued at $31,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

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.