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

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was 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.

Key Stories Impacting Advanced Micro Devices

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.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on AMD shares. Wolfe Research set a $450.00 price objective on Advanced Micro Devices and gave the stock an “outperform” rating in a research note on Monday. Truist Financial set a $478.00 price objective on Advanced Micro Devices in a research note on Wednesday, May 6th. Morgan Stanley lifted their target price on Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Erste Group Bank raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a research report on Thursday, April 2nd. Finally, Bank of America lifted their target price on Advanced Micro Devices from $500.00 to $560.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. One investment 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 stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $430.68.

Advanced Micro Devices Trading Up 1.0%

The firm has a market capitalization of $835.65 billion, a price-to-earnings ratio of 168.03, a P/E/G ratio of 1.60 and a beta of 2.50. The business has a 50-day moving average of $398.80 and a two-hundred day moving average of $279.06. 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 (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. The company had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company’s quarterly revenue was up 37.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.96 earnings per share. Research analysts predict that Advanced Micro Devices, Inc. will post 6.2 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred 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 sale, the chief executive officer directly owned 2,896,899 shares of the company’s stock, valued at approximately $1,334,572,400.31. The trade was a 4.14% decrease in their ownership of the stock. The transaction 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, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, June 2nd. The shares were 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 in the company, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 378,032 shares of company stock valued at $161,876,596. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its position in Advanced Micro Devices by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock worth $33,949,256,000 after purchasing an additional 2,525,109 shares during the last quarter. State Street Corp grew its holdings in shares of Advanced Micro Devices by 1.5% in the 4th quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock valued at $16,044,712,000 after buying an additional 1,094,835 shares during the period. Geode Capital Management LLC grew its holdings in shares of Advanced Micro Devices by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock valued at $8,015,897,000 after buying an additional 287,525 shares during the period. Norges Bank acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at $4,929,312,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in Advanced Micro Devices by 0.3% in the 4th 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. 71.34% of the stock is owned by institutional investors and hedge funds.

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.