Advanced Micro Devices (NASDAQ:AMD) Trading 1.5% Higher – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded up 1.5% during trading on Wednesday . The stock traded as high as $561.47 and last traded at $552.33. Approximately 24,477,857 shares were traded during mid-day trading, a decline of 33% from the average daily volume of 36,487,680 shares. The stock had previously closed at $544.43.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD announced a strategic partnership with Anthropic to deploy up to 2 gigawatts of its next-generation Instinct MI450 GPUs, with the first deployment expected in the first half of 2027, implying tens of billions of dollars in potential chip demand. AMD and Anthropic Sign Major Chips-and-Investment Deal
• Positive Sentiment: AMD said it plans to invest up to $5 billion in Anthropic, which investors are interpreting as a strong signal of confidence in AMD’s AI roadmap and a way to deepen a high-profile customer relationship. AMD to invest up to $5 billion in Anthropic as part of computing power deal
• Positive Sentiment: Wells Fargo and other analysts turned more constructive on AMD’s revenue outlook after the Anthropic deal, citing added confidence that AI-related chip demand can support future growth. AMD Stock Rises as Wells Fargo Gains ‘Further Confidence’ in Revenue after Anthropic Deal
• Positive Sentiment: Recent commentary also pointed to AMD’s expanding Microsoft Azure and broader AI infrastructure partnerships as evidence that the company is gaining share in the AI compute market. Microsoft’s AI Bet Could Rewrite AMD’s Growth Story
• Neutral Sentiment: AMD remains highly valued, so even with strong AI momentum, investors may continue to see volatility ahead of its Aug. 4 earnings report and the July 23 Advancing AI event.
• Neutral Sentiment: Some articles frame AMD’s rally as part of a broader semiconductor rebound and anticipation around upcoming product and customer announcements rather than a single fundamental update.
• Negative Sentiment: Several market commentary pieces caution that AMD’s valuation leaves limited room for execution mistakes, which could pressure the stock if upcoming updates fail to meet elevated expectations.

Wall Street Analyst Weigh In

A number of research firms recently commented on AMD. Citigroup raised Advanced Micro Devices from a “market perform” rating to a “buy” rating in a report on Wednesday. Morgan Stanley increased their price objective on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Zacks Research cut shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Evercore restated an “outperform” rating and set a $579.00 target price on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. Finally, DA Davidson raised their target price on shares of Advanced Micro Devices from $375.00 to $425.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $468.65.

Advanced Micro Devices Trading Up 1.5%

The company has a 50-day moving average of $506.71 and a 200 day moving average of $334.80. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company has a market cap of $900.63 billion, a PE ratio of 181.09, a price-to-earnings-growth ratio of 1.46 and a beta of 2.47.

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 business 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% compared to the same quarter last year. During the same period in the prior year, the business posted $0.96 earnings per share. Analysts predict that Advanced Micro Devices, Inc. will post 6.25 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the firm’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 completion of the sale, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the transaction, the director directly owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. This represents a 9.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 341,630 shares of company stock worth $152,147,456 in the last ninety days. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Joseph Group Capital Management purchased a new position in Advanced Micro Devices during the 4th quarter valued at $25,000. Sarver Vrooman Wealth Advisors bought a new stake in Advanced Micro Devices during the 4th quarter valued at $27,000. Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices in the fourth quarter valued at about $27,000. Basepoint Wealth LLC purchased a new stake in Advanced Micro Devices in the fourth quarter worth about $30,000. Finally, Graney & King LLC bought a new position in Advanced Micro Devices during the 1st quarter worth about $31,000. Institutional investors 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.