Advanced Micro Devices (NASDAQ:AMD) Shares Climb 13.3% – Still a Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price rose 13.3% during mid-day trading on Monday. The company traded as high as $515.18 and last traded at $508.58. Approximately 50,752,665 shares traded hands during mid-day trading, an increase of 58% from the average session volume of 32,132,826 shares. The stock had previously closed at $449.04.

Key Stories Impacting Advanced Micro Devices

These are some of the AMD stories that stood out recently:

• Positive Sentiment: Google’s selection of AMD’s 5th-generation EPYC processors for its TPU 8tx system, together with the launch of AMD’s EPYC Venice CPUs, strengthens the company’s position in data-center and AI infrastructure. AMD news and Google EPYC selection EPYC Venice launch
• Positive Sentiment: CoreWeave’s better-than-expected results and improved outlook revived optimism about AI spending, helping lift semiconductor shares. AMD also got support from reports of growing CPU sales. Why AMD stock rose
• Neutral Sentiment: The broader semiconductor rebound is also a significant factor: chip stocks recovered after a sharp sector selloff, so some of AMD’s strength may reflect improving market sentiment rather than company-specific developments. Semiconductor sector rebound

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. JPMorgan Chase & Co. raised their price target on shares of Advanced Micro Devices from $550.00 to $575.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 4th. Union Gaming Research reaffirmed a “positive” rating on shares of Advanced Micro Devices in a report on Wednesday, November 4th. KeyCorp restated an “overweight” rating and set a $725.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. DA Davidson upped their price target on shares of Advanced Micro Devices from $550.00 to $600.00 and gave the stock a “buy” rating in a research note on Wednesday, November 4th. Finally, Citigroup lifted their price target on Advanced Micro Devices from $575.00 to $800.00 and gave the stock a “buy” rating in a research note on Tuesday, October 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $642.47.

Advanced Micro Devices Price Performance

The stock’s fifty day simple moving average is $548.56 and its 200-day simple moving average is $417.58. The company has a market capitalization of $906.80 billion, a P/E ratio of 120.20, a PEG ratio of 4.90 and a beta of 2.49. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.72 and a quick ratio of 1.93.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, beating the consensus estimate of $1.95 by $0.14. The firm had revenue of $13.38 billion during the quarter, compared to analysts’ expectations of $13.10 billion. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. The business’s quarterly revenue was up 44.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.20 EPS. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Lisa T. Su sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total value of $12,669,750.00. Following the completion of the sale, the chief executive officer owned 74,211 shares of the company’s stock, valued at $37,609,392.69. This trade represents a 25.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at 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 business’s stock in a transaction dated 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 directly owned 160,979 shares of the company’s stock, valued at $76,316,924.32. This represents a 8.52% 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. Insiders have sold 230,957 shares of company stock worth $114,799,511 in the last quarter. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several large investors have recently modified their holdings of the business. Patron Partners LLC increased its position in shares of Advanced Micro Devices by 28.2% during the 3rd quarter. Patron Partners LLC now owns 2,400 shares of the semiconductor manufacturer’s stock worth $1,468,000 after purchasing an additional 528 shares during the last quarter. Red Oak Financial Group LLC bought a new position in Advanced Micro Devices in the 3rd quarter valued at about $218,000. Mayflower Financial Advisors LLC raised its holdings in shares of Advanced Micro Devices by 0.8% during the 3rd quarter. Mayflower Financial Advisors LLC now owns 5,421 shares of the semiconductor manufacturer’s stock worth $3,316,000 after buying an additional 45 shares in the last quarter. Advisors Asset Management Inc. acquired a new stake in Advanced Micro Devices in the third quarter valued at approximately $43,306,000. Finally, Edmond DE Rothschild Holding S.A. increased its stake in shares of Advanced Micro Devices by 12.7% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 41,012 shares of the semiconductor manufacturer’s stock valued at $25,090,000 after buying an additional 4,610 shares during the period. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors. The company’s product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.