Advanced Micro Devices (NASDAQ:AMD) Stock Jumps 5.5% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 5.5% during mid-day trading on Tuesday. The stock traded as high as $563.91 and last traded at $560.26. 20,458,614 shares were traded during trading, a decline of 36% from the average daily volume of 31,781,248 shares. The stock had previously closed at $531.28.

Key Advanced Micro Devices News

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

• Positive Sentiment: Expanded Meta partnership strengthens AMD’s AI growth outlook. AMD plans to invest $1 billion in Meta’s equity offering while supplying gigawatt-scale computing infrastructure and collaborating on Instinct GPUs, EPYC CPUs, networking, software, and future architectures. Meta is already testing AMD Helios systems and is expected to deploy AMD hardware more broadly, potentially supporting multiyear data-center revenue. AMD Stock Outlook: AMD’s Meta Deal Boosts AI Growth Prospects
• Positive Sentiment: Additional enterprise demand supports AMD’s accelerator strategy. HGS selected Rackspace Technology’s private AI infrastructure platform powered by AMD, adding another customer reference for AMD’s Instinct products and ROCm software. AMD also continues to benefit from agreements involving OpenAI, Anthropic, and other hyperscalers. HGS Selects Rackspace Technology for Private AI Infrastructure Powered by AMD
• Positive Sentiment: Analyst support remains favorable. Susquehanna raised its price target to $650 and maintained a positive rating, while Aletheia Capital lifted its target to $800 with a Buy rating. Analysts cite strengthening data-center fundamentals and demand for AMD’s AI accelerators. Susquehanna AMD rating
• Neutral Sentiment: Third-quarter earnings are the next major catalyst. AMD reports results on November 3, with investors focused on data-center growth, Instinct accelerator demand, margins, supply availability, and forward guidance. Strong results may validate the rally, but beating estimates alone may not be sufficient at the current valuation. AMD earnings outlook
• Negative Sentiment: AI spending concerns pressured semiconductor shares. Alphabet’s results raised questions about the enormous cost of building AI infrastructure, while lighter-than-expected capital-spending signals from major technology companies and Samsung’s profit miss reinforced worries about the sustainability of the chip cycle. Why semiconductor stocks fell in premarket trading
• Negative Sentiment: Valuation and costs remain risks. AMD trades at a very high earnings multiple, increasing execution expectations. Reported increases in TSMC wafer and advanced-packaging prices could weigh on margins, while ARK Invest’s continued AMD sales add a negative sentiment signal. TSMC pricing increases

Analysts Set New Price Targets

Several brokerages have recently commented on AMD. Weiss Ratings upgraded shares of Advanced Micro Devices from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Jefferies Financial Group set a $650.00 price target on Advanced Micro Devices in a research report on Wednesday, August 5th. The Goldman Sachs Group raised their price objective on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Rosenblatt Securities restated a “buy” rating and set a $700.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, September 29th. Finally, Truist Financial increased their target price on shares of Advanced Micro Devices from $478.00 to $594.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average price target of $607.57.

Advanced Micro Devices Trading Down 2.7%

The company’s 50-day moving average price is $545.58 and its 200 day moving average price is $405.90. The stock has a market cap of $918.38 billion, a PE ratio of 144.72, a price-to-earnings-growth ratio of 5.30 and a beta of 2.45. 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 announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share 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 analysts’ expectations of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business’s revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the business earned $0.48 earnings per share. On average, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.50 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Forrest Norrod sold 17,262 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total value of $9,333,563.40. Following the sale, the executive vice president directly owned 353,317 shares in the company, valued at approximately $191,038,501.90. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 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 transaction of $7,111,200.00. Following the completion of the transaction, the executive vice president owned 160,979 shares of the company’s stock, 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 ninety days, insiders have sold 231,100 shares of company stock valued at $114,867,400. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Large investors have recently modified their holdings of the company. True Freedom Investing LLC bought a new stake in shares of Advanced Micro Devices during the third quarter worth approximately $1,074,000. Woodmont Investment Counsel LLC increased its stake in Advanced Micro Devices by 88.2% during the 3rd quarter. Woodmont Investment Counsel LLC now owns 2,640 shares of the semiconductor manufacturer’s stock worth $1,615,000 after purchasing an additional 1,237 shares in the last quarter. Dala Group LLC raised its holdings in Advanced Micro Devices by 21.8% during the 3rd quarter. Dala Group LLC now owns 817 shares of the semiconductor manufacturer’s stock worth $500,000 after buying an additional 146 shares during the period. Pinkerton Wealth LLC acquired a new position in Advanced Micro Devices in the 3rd quarter worth $755,000. Finally, Virtue Capital Management LLC grew its holdings in shares of Advanced Micro Devices by 10.6% during the third quarter. Virtue Capital Management LLC now owns 9,179 shares of the semiconductor manufacturer’s stock worth $5,615,000 after buying an additional 880 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

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.