Advanced Micro Devices (NASDAQ:AMD) Shares Up 2.7% – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shot up 2.7% during mid-day trading on Monday . The stock traded as high as $562.99 and last traded at $551.63. Approximately 25,219,908 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 37,951,813 shares. The stock had previously closed at $537.37.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD is benefiting from a broader chip rally and expanded FSR GPU support, which has been cited as a catalyst for the stock’s move higher. AMD Stock Up on Expanded FSR GPU Support
• Positive Sentiment: Market commentary remains constructive, with one analyst saying AMD still holds a strong edge in chipmaking and can compete well in AI even as Nvidia leads the space. Gibbens: AMD Holds Its Own Against NVDA, SPCX & Other IPOs Benefit GS
• Positive Sentiment: AMD continues to attract upbeat long-term coverage, with brokerage sentiment described as “Moderate Buy,” reinforcing investor confidence in the AI and semiconductor growth story. Advanced Micro Devices, Inc. Receives Average Recommendation of Moderate Buy from Brokerages
• Neutral Sentiment: AMD’s stock has already more than doubled this year, so some investors may be debating whether the current valuation leaves room for upside. Should You Buy AMD Stock Now or Wait for a Dip?
• Negative Sentiment: David Tepper’s Appaloosa Management reportedly cut its AMD stake by about 32%, a sign that at least one prominent investor is becoming less bullish. David Tepper Trimmed Nvidia and AMD, but Doubled Down on This AI Stock
• Negative Sentiment: Reports of more than $60 million in insider selling since the start of June could weigh on sentiment, even if it does not necessarily change the company’s fundamentals. Sell alert? AMD insiders dumped $60 million worth of stock since June started

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Wedbush raised their target price on Advanced Micro Devices from $290.00 to $400.00 and gave the stock an “outperform” rating in a research report on Monday, May 4th. Susquehanna upped their price target on Advanced Micro Devices from $375.00 to $450.00 and gave the company a “positive” rating in a research report on Wednesday, May 6th. Roth Mkm reissued a “buy” rating and issued a $500.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Finally, Erste Group Bank raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Thursday, April 2nd. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $430.68.

Advanced Micro Devices Stock Up 2.7%

The stock has a market cap of $899.49 billion, a price-to-earnings ratio of 180.86, a PEG ratio of 1.58 and a beta of 2.50. The stock has a 50 day simple moving average of $417.16 and a 200 day simple moving average of $285.68. 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 issued its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. The firm 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 business’s revenue was up 37.8% on a year-over-year basis. During the same period last year, the company earned $0.96 earnings per share. As a group, analysts expect that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at $140,000,947.80. This represents a 5.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the sale, the executive vice president directly owned 1,233,687 shares in the company, valued at approximately $661,663,348.71. This trade represents a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 378,032 shares of company stock worth $161,876,596. 0.50% of the stock is owned by insiders.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently bought and sold shares of AMD. Vanguard Group Inc. boosted its holdings in Advanced Micro Devices by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock valued at $33,949,256,000 after acquiring an additional 2,525,109 shares in the last quarter. State Street Corp raised its holdings in 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 worth $16,044,712,000 after purchasing an additional 1,094,835 shares in the last quarter. Geode Capital Management LLC lifted its position 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 worth $8,015,897,000 after purchasing an additional 287,525 shares during the period. Norges Bank purchased a new stake in shares of Advanced Micro Devices in the 4th quarter worth about $4,929,312,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of Advanced Micro Devices by 0.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock valued at $4,352,864,000 after purchasing an additional 55,969 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

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.