Wall Street Zen Downgrades Advanced Micro Devices (NASDAQ:AMD) to Hold

Advanced Micro Devices (NASDAQ:AMD) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research firms also recently commented on AMD. Wells Fargo & Company boosted their price objective on Advanced Micro Devices from $615.00 to $700.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Robert W. Baird set a $1,250.00 price target on shares of Advanced Micro Devices in a research report on Friday, July 24th. Wolfe Research set a $450.00 price target on shares of Advanced Micro Devices and gave the company an “outperform” rating in a research note on Monday, June 15th. Rosenblatt Securities upped their price objective on shares of Advanced Micro Devices from $665.00 to $700.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $540.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $567.62.

Advanced Micro Devices Price Performance

AMD stock opened at $630.59 on Friday. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The company’s 50-day moving average is $504.35 and its 200-day moving average is $431.45. The stock has a market capitalization of $1.03 trillion, a PE ratio of 162.11, a price-to-earnings-growth ratio of 6.54 and a beta of 2.48. Advanced Micro Devices has a 1 year low of $157.05 and a 1 year high of $639.00.

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

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,261 shares of Advanced Micro Devices stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $503.05, for a total transaction of $8,683,146.05. Following the transaction, the executive vice president directly owned 363,317 shares of the company’s stock, valued at $182,766,616.85. The trade was a 4.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the sale, the executive vice president owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 213,838 shares of company stock valued at $105,533,836 in the last three months. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. JNBA Financial Advisors boosted its stake in shares of Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after buying an additional 30 shares during the last quarter. Bullseye Investment Management LLC purchased a new stake in shares of Advanced Micro Devices during the second quarter valued at approximately $44,000. Luminist Capital LLC bought a new stake in Advanced Micro Devices during the second quarter worth $46,000. BOK Financial Private Wealth Inc. bought a new stake in Advanced Micro Devices during the second quarter worth $53,000. Finally, Toews Corp ADV purchased a new position in Advanced Micro Devices in the second quarter worth $66,000. 71.34% of the stock is owned by institutional investors.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Bank of America raised its price target from $620 to $720 and maintained a Buy rating. The firm believes AMD’s server CPU total addressable market could nearly triple to $211 billion by 2030 as AI agents increase demand for computing infrastructure. BofA raises AMD target to $720
• Positive Sentiment: Perplexity collaboration supports AMD’s PC AI strategy. New tools are designed to make Perplexity’s AI capabilities easier to run locally on Ryzen-powered PCs, reinforcing the potential for edge AI and personal-agent workloads to drive CPU demand. AMD Stock Rises After Introducing New AI Tools from Perplexity
• Positive Sentiment: AI momentum remains the primary catalyst. Analysts and market commentators point to AMD’s EPYC server CPUs, AI accelerators, Helios rack systems, and potential edge-computing demand as avenues for the company to participate in the broader AI infrastructure cycle. Some forecasts reach $750 per share.
• Positive Sentiment: Technical and industry momentum is attracting buyers. AMD broke above key resistance, while rising demand for AI chips and optimism surrounding CPU makers helped lift semiconductor stocks broadly.
• Neutral Sentiment: AMD’s $1 trillion valuation is both a milestone and a test. The company’s roughly 189% year-to-date advance reflects strong investor enthusiasm, but the milestone means future AI deployments, revenue growth, and margins must meet very high expectations.
• Negative Sentiment: Valuation concerns could limit further upside. Commentary highlights AMD’s high forward earnings multiple and argues that Nvidia remains larger, more profitable, and further ahead in shipping full AI systems. Elevated Treasury yields could also pressure richly valued technology stocks.

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.