Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.2% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was up 2.2% during trading on Tuesday . The company traded as high as $513.66 and last traded at $504.20. Approximately 16,832,402 shares traded hands during trading, a decline of 50% from the average daily volume of 33,550,699 shares. The stock had previously closed at $493.41.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Piper Sandler maintained an Overweight rating and a $600 price target following discussions with investors ahead of AMD’s third-quarter quiet period. The target implies continued confidence in AI accelerators, server CPUs and market-share gains. Why is AMD stock gaining today?
• Positive Sentiment: AMD and SiFive demonstrated AMD’s ROCm software running on a RISC-V data-center platform. The collaboration could broaden AMD’s software ecosystem and support adoption of its accelerators beyond traditional server architectures. SiFive and AMD Collaborate to Optimize AMD ROCm on RISC-V Datacenter Servers
• Positive Sentiment: Several market commentaries argue that AMD may be closing the AI-chip gap with Nvidia, helped by hyperscaler demand, AI accelerator deployments and future inference workloads. A broader data-center buildout could continue even if spending on frontier-model training moderates. Prediction: AMD Could Be Closing the Gap in the AI Chip Race
• Neutral Sentiment: President Trump’s rejection of calls to slow frontier-AI development helped ease concerns that regulation or safety debates would sharply reduce infrastructure investment. However, the immediate effect on AMD’s actual revenue remains uncertain. Donald Trump Rejects Calls for AI Slowdown
• Negative Sentiment: AMD remains highly valued after a surge of more than 200% over the past year. Its elevated earnings multiple leaves the stock vulnerable if data-center expansion, AI accelerator demand or execution falls short of aggressive expectations.
• Negative Sentiment: Analysts continue to expect Nvidia to remain ahead through 2028, highlighting competitive pressure in AI chips and software. Separately, CEO Lisa Su’s sale of shares under a pre-arranged Rule 10b5-1 plan may weigh on sentiment, even though it does not necessarily signal weaker business prospects. Nvidia Will Still Beat AMD Through 2028

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on AMD. Rosenblatt Securities upped their price objective on Advanced Micro Devices from $665.00 to $700.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Jefferies Financial Group set a $650.00 target price on Advanced Micro Devices in a research note on Wednesday, August 5th. Wells Fargo & Company boosted their price target on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. UBS Group restated an “overweight” rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Finally, Citigroup upgraded Advanced Micro Devices from a “market perform” rating to a “buy” rating in a research note on Wednesday, July 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $565.12.

Advanced Micro Devices Price Performance

The firm has a market cap of $823.09 billion, a P/E ratio of 129.61, a P/E/G ratio of 5.35 and a beta of 2.48. The firm’s fifty day simple moving average is $494.57 and its 200 day simple moving average is $407.26. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business’s revenue was up 50.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.48 earnings per share. As a group, analysts forecast that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares of the company’s stock, valued at $76,316,924.32. The trade was a 8.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total value of $12,669,750.00. Following the sale, the chief executive officer directly owned 74,211 shares in the company, valued at $37,609,392.69. This trade represents a 25.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 196,577 shares of company stock worth $96,850,690. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently bought and sold shares of AMD. BlackRock Inc. lifted its stake in shares of Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Advanced Micro Devices by 0.8% during 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 purchasing an additional 287,525 shares during the last quarter. Bank of America Corp DE purchased a new stake in Advanced Micro Devices during the 2nd quarter valued at $7,022,226,000. Jennison Associates LLC raised its holdings in Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock valued at $5,793,388,000 after buying an additional 545,575 shares during the period. Finally, Wellington Management Group LLP lifted its position in Advanced Micro Devices by 33.9% in the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after buying an additional 2,365,419 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.