Advanced Micro Devices, Inc. (NASDAQ:AMD) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate AMD a “Moderate Buy”: Of 45 firms covering the stock, 31 recommend buying, 3 strongly recommend buying, 10 rate it a hold and 1 rates it a sell. The average 12-month price target is $546.87, with recent targets as high as $700.
• AMD reported strong quarterly performance: Revenue rose 50.1% year over year to a record $11.54 billion, while adjusted EPS of $1.66 exceeded estimates. Data Center revenue more than doubled, and management raised its outlook, supporting the company’s AI growth strategy.
• High expectations remain a key risk: AMD trades at roughly 124 times earnings, leaving limited room for disappointing AI growth, margins or execution amid Nvidia’s competitive lead. CEO Lisa Su and other insiders have also sold shares under pre-arranged trading plans.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) has been given a consensus rating of "Moderate Buy" by the forty-five research firms that are presently covering the company, Marketbeat reports. One analyst has rated the stock with a sell rating, ten have issued a hold rating, thirty-one have given a buy rating and three have issued a strong buy rating on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $546.8684.

Several research analysts recently weighed in on the company. Rosenblatt Securities upped their price target on Advanced Micro Devices from $665.00 to $700.00 and gave the company a "buy" rating in a research report on Thursday. The Goldman Sachs Group lifted their price objective on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the company a "buy" rating in a research note on Monday, July 6th. BTIG Research upgraded Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Advanced Micro Devices in a research report on Monday, August 3rd. Finally, Benchmark raised their price target on Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD agreed to acquire Toronto-based AI-inference chip startup Taalas for an undisclosed amount. Taalas develops specialized silicon designed to reduce computing and memory bottlenecks, and AMD plans to integrate the technology with its Instinct GPUs. The deal could improve AMD’s inference performance and strengthen its challenge to Nvidia in a rapidly expanding market. AMD deepens AI inference bet with Taalas deal as chip race heats up
• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, and adjusted earnings of $1.66 per share, exceeding consensus estimates. Data Center revenue more than doubled, while management raised its outlook, reinforcing the long-term AI growth case. AMD tops Q2 earnings estimates and provides strong outlook
• Positive Sentiment: Several analysts remain constructive: Rosenblatt raised its price target to $700 with a buy rating, while JPMorgan lifted its target to $550 but retained a neutral rating. Recent institutional filings also showed sizable increases in AMD holdings by PNC Financial and GF Fund Management. AMD analyst price-target changes
• Neutral Sentiment: Investors continue to debate whether AMD can become a major Nvidia alternative. Optimistic views point to data-center demand, AI deployments and supply leverage, but the stock’s high valuation means additional upside likely requires sustained execution and accelerating growth. This Could Be One of the Best Opportunities to Buy AMD Stock in Months
• Negative Sentiment: AMD’s results and guidance, although strong, did not clear an exceptionally high AI-growth bar. Investors wanted stronger evidence of accelerating AI revenue, higher margins and a faster path to closing Nvidia’s competitive lead. Why AMD’s solid quarterly earnings failed to impress investors
• Negative Sentiment: Near-term concerns include slowing growth in AMD’s client and gaming businesses and intensifying Nvidia competition. SpaceX’s selection of Nvidia rather than AMD for an AI-chip partnership further underscored concerns about Nvidia’s customer and ecosystem advantages. AMD stock falls after record quarter as SpaceX picks Nvidia
• Negative Sentiment: At roughly 124 times earnings, AMD leaves little room for disappointment. The combination of lofty expectations, post-earnings profit-taking and increased short interest contributed to the weaker investor reaction despite the earnings beat. AMD short volume hits a two-week high

Insiders Place Their Bets

In related news, CEO Lisa T. Su sold 125,000 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company's stock, valued at approximately $1,334,572,400.31. The trade was a 4.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the transaction, the executive vice president owned 1,233,687 shares of the company's stock, valued at approximately $661,663,348.71. The trade was a 0.48% 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 285,934 shares of company stock valued at $130,353,006 in the last three months. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of Advanced Micro Devices during the 4th quarter worth approximately $4,929,312,000. Jennison Associates LLC increased its position in shares of Advanced Micro Devices by 181.6% during the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer's stock worth $2,336,552,000 after purchasing an additional 7,035,991 shares in the last quarter. Cardano Risk Management B.V. acquired a new stake in shares of Advanced Micro Devices during the fourth quarter worth approximately $1,000,783,000. BlackRock Inc. raised its position in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the last quarter. Finally, Wellington Management Group LLP raised its holdings in shares of Advanced Micro Devices by 335.9% in the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock valued at $784,330,000 after buying an additional 3,735,807 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Advanced Micro Devices Price Performance

AMD stock opened at $483.36 on Monday. 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 firm has a market capitalization of $789.07 billion, a P/E ratio of 124.26 and a beta of 2.48. Advanced Micro Devices has a 52-week low of $149.22 and a 52-week high of $584.73. The company's 50 day simple moving average is $514.56 and its 200-day simple moving average is $360.00.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping analysts' consensus estimates 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 firm had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same quarter last year, the business posted $0.48 EPS. The company's revenue was up 50.1% on a year-over-year basis. As a group, equities research analysts anticipate that Advanced Micro Devices will post 6.38 EPS for the current year.

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.

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