Advanced Micro Devices (NASDAQ:AMD) Stock Price Breaks Above 50 Day Moving Average – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares crossed above its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $543.70 and traded as high as $563.91. Advanced Micro Devices shares last traded at $560.26, with a volume of 20,511,074 shares.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD expanded its partnership with Meta Platforms, including a planned $1 billion investment in Meta and multi-generation co-design of Instinct GPUs, EPYC processors and Helios rack-scale systems. The agreement covers Meta’s gigawatt-scale AI infrastructure and could support significant future chip demand. AMD Meta partnership article
• Positive Sentiment: Meta’s deployment of AMD hardware for AI models, along with reported agreements involving OpenAI and Anthropic, reinforces AMD’s position as a major alternative to Nvidia in the data-center accelerator market. AMD AI partnership article
• Positive Sentiment: Analysts expect AMD’s upcoming third-quarter results and outlook to benefit from continued demand for EPYC server CPUs and Instinct AI accelerators. Susquehanna also raised its price target to $650 and maintained a positive rating. AMD earnings preview
• Neutral Sentiment: AMD is scheduled to report earnings on November 3. After a powerful year-to-date rally, investors will likely focus less on a quarterly beat and more on 2027 data-center revenue expectations, supply availability, margins and forward guidance. AMD valuation and earnings article
• Negative Sentiment: Jefferies warned that AMD’s demanding valuation and potential supply constraints could limit near-term upside, even if the company beats estimates and raises guidance. Taiwan Semiconductor’s higher wafer and advanced-packaging prices also create a potential margin risk for AMD. Jefferies AMD outlook
• Negative Sentiment: Semiconductor stocks came under pressure after Alphabet’s results highlighted the enormous expense of AI infrastructure, while lighter-than-expected spending signals from major technology companies raised concerns about the sustainability and returns of the AI investment cycle. AI infrastructure market reaction
• Negative Sentiment: AMD’s valuation leaves little room for disappointment after its substantial rally, and ARK Invest’s continued reduction of its AMD position adds a modest negative sentiment signal.

Analysts Set New Price Targets

AMD has been the subject of a number of recent analyst reports. Roth Capital increased their target price on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research report on Friday, July 24th. KeyCorp set a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. DA Davidson upped their price objective on shares of Advanced Micro Devices from $425.00 to $550.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Mizuho increased their price objective on shares of Advanced Micro Devices from $580.00 to $705.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 6th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Advanced Micro Devices in a research report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $607.57.

Advanced Micro Devices Trading Down 2.1%

The firm has a fifty day simple moving average of $547.58 and a 200-day simple moving average of $407.71. The firm has a market cap of $924.66 billion, a P/E ratio of 121.52, a price-to-earnings-growth ratio of 5.94 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The company’s quarterly revenue was up 50.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.48 earnings per share. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 28,811 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the transaction, the executive vice president owned 160,979 shares in the company, valued at $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. In the last three months, insiders have sold 231,100 shares of company stock worth $114,867,400. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors have recently bought and sold shares of the stock. First Citizens Financial Corp raised its stake in shares of Advanced Micro Devices by 3.4% in the 3rd quarter. First Citizens Financial Corp now owns 490 shares of the semiconductor manufacturer’s stock valued at $300,000 after purchasing an additional 16 shares during the period. Fearless Solutions LLC dba Best Invest boosted its position in shares of Advanced Micro Devices by 1.5% during the third quarter. Fearless Solutions LLC dba Best Invest now owns 1,174 shares of the semiconductor manufacturer’s stock worth $718,000 after buying an additional 17 shares during the period. Private Client Services LLC boosted its position in shares of Advanced Micro Devices by 1.7% during the third quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock worth $660,000 after buying an additional 18 shares during the period. Essential Investment Partners LLC boosted its position in shares of Advanced Micro Devices by 40.0% during the third quarter. Essential Investment Partners LLC now owns 63 shares of the semiconductor manufacturer’s stock worth $39,000 after buying an additional 18 shares during the period. Finally, CKW Financial Group grew its holdings in shares of Advanced Micro Devices by 1.3% during the third quarter. CKW Financial Group now owns 1,450 shares of the semiconductor manufacturer’s stock worth $893,000 after buying an additional 18 shares in the last quarter. 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 high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.