Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 5.9% – Still a Buy?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 5.9% during mid-day trading on Tuesday . The stock traded as high as $512.36 and last traded at $505.74. Approximately 27,789,808 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 33,927,504 shares. The stock had previously closed at $477.57.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD raised its estimate for the total addressable AI market to approximately $3 trillion by 2030, up from about $2 trillion previously. The larger opportunity supports the company’s long-term growth narrative. AMD stock jumps 6% as AI market opportunity seen at $3T
• Positive Sentiment: Investor enthusiasm is also being supported by AMD’s AI roadmap, including Instinct GPUs, EPYC server processors and Helios rack-scale systems. Recent coverage highlights an AI workstation designed to run models with as many as 300 billion parameters locally, potentially broadening demand beyond cloud data centers. AMD Just Put 300 Billion-Parameter AI Models on a Desktop
• Positive Sentiment: AMD’s latest reported quarter exceeded expectations, with revenue of $11.54 billion and earnings of $1.66 per share; revenue grew 50.1% year over year. Articles also point to the OpenAI GPU relationship and expectations for accelerating data-center demand as potential catalysts. AMD Has Something Nvidia Doesn’t
• Neutral Sentiment: Institutional positioning appears supportive, with several large investors adding AMD shares in the second quarter. However, this reflects past filings rather than a new announcement and may not indicate current trading intentions.
• Negative Sentiment: Some analysts argue AMD’s AI growth and Helios ramp are already reflected in the stock’s valuation. With a high earnings multiple, the shares may be vulnerable if product launches, margins or demand fail to meet elevated expectations. AMD AI TAM And Helios Ramp Already Priced In
• Negative Sentiment: Broadcom is cited as a competitive threat, while other coverage says Broadcom is growing faster at a lower valuation. AMD insiders have also reported selling shares without recorded purchases over the past six months, a potential cautionary signal.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Susquehanna increased their price target on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “positive” rating in a research report on Thursday, July 30th. Roth Capital lifted their price target on Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Evercore restated an “outperform” rating and set a $579.00 price objective on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. Sanford C. Bernstein reissued an “outperform” rating and set a $650.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Finally, Rosenblatt Securities raised their price target on shares of Advanced Micro Devices from $665.00 to $700.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $553.72.

Advanced Micro Devices Stock Performance

The company has a 50 day simple moving average of $497.96 and a 200-day simple moving average of $396.52. The stock has a market capitalization of $825.61 billion, a P/E ratio of 130.01, a price-to-earnings-growth ratio of 4.95 and a beta of 2.48. 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 announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same period in the previous year, the business posted $0.48 earnings per share. Advanced Micro Devices’s revenue for the quarter was up 50.1% on a year-over-year basis. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.44 EPS for the current year.

Insider Activity

In related news, EVP Forrest Norrod sold 17,261 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $459.95, for a total value of $7,939,196.95. Following the completion of the transaction, the executive vice president owned 373,317 shares of the company’s stock, valued at approximately $171,707,154.15. This trade represents a 4.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 Advanced Micro Devices 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 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. 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. Over the last three months, insiders sold 232,577 shares of company stock worth $109,509,170. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors have recently modified their holdings of the stock. Southpoint Capital Advisors LP boosted its position in shares of Advanced Micro Devices by 50.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock valued at $183,087,000 after purchasing an additional 300,000 shares during the period. Jefferies Financial Group Inc. raised its holdings in Advanced Micro Devices by 6,228.8% in the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after acquiring an additional 303,154 shares during the last quarter. Boomfish Wealth Group LLC acquired a new stake in Advanced Micro Devices during the first quarter worth about $1,193,000. Dimensional Fund Advisors LP lifted its stake in shares of Advanced Micro Devices by 6.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock worth $1,045,954,000 after purchasing an additional 291,165 shares in the last quarter. Finally, Williamson Legacy Group LLC acquired a new stake in shares of Advanced Micro Devices during the fourth quarter valued at about $1,118,000. 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 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.