Advanced Micro Devices (NASDAQ:AMD) Hits New 12-Month High - Still a Buy?

Key Points

• AMD hit a new 52-week high, trading as high as $562.99 as investors continued to buy into the broader chip rally and AI semiconductor enthusiasm.
• The company’s recent momentum is being supported by positive developments such as expanded driver support for older GPUs, which could boost adoption and customer loyalty.
• Despite the rally, there are valuation and insider-selling concerns; some observers are cautioning that the stock may need a pullback, even though Wall Street still rates AMD a “Moderate Buy.”

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) reached a new 52-week high during trading on Monday . The stock traded as high as $562.99 and last traded at $542.5830, with a volume of 6936792 shares. The stock had previously closed at $537.37.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD shares are benefiting from the broader chip rally and continued enthusiasm for AI-related semiconductor stocks, which has kept the name well above its key technical averages. What's Going On With AMD Stock Monday?
• Positive Sentiment: AMD expanded driver support for older GPUs, a move that can strengthen product adoption and customer loyalty while adding another catalyst for the stock. AMD Stock Up on Expanded FSR GPU Support
• Neutral Sentiment: New commentary asks whether investors should buy AMD now or wait for a pullback, highlighting that the stock has already more than doubled this year and may need to digest gains. Should You Buy AMD Stock Now or Wait for a Dip?
• Neutral Sentiment: Analysts remain broadly constructive, with brokerage coverage still pointing to a “Moderate Buy” consensus, which supports sentiment but does not change the near-term story by itself. Advanced Micro Devices, Inc. Receives Average Recommendation of "Moderate Buy" from Brokerages
• Negative Sentiment: Some market watchers are warning that AMD’s sharp run-up may be masking valuation and risk concerns, and insider selling has added to the cautious tone around the name. Sell alert? AMD insiders dumped $60 million worth of stock since June started

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Melius Research set a $540.00 price target on Advanced Micro Devices in a report on Monday, May 18th. TD Cowen lifted their price objective on shares of Advanced Micro Devices from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Barclays downgraded shares of Advanced Micro Devices from an "overweight" rating to an "underweight" rating in a research report on Friday, June 12th. Jefferies Financial Group cut shares of Advanced Micro Devices from a "buy" rating to a "hold" rating in a report on Wednesday, May 6th. Finally, Raymond James Financial began coverage on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. They issued a "market perform" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices presently has an average rating of "Moderate Buy" and a consensus target price of $430.68.

Advanced Micro Devices Price Performance

The stock has a market capitalization of $886.16 billion, a P/E ratio of 178.23, a price-to-earnings-growth ratio of 1.58 and a beta of 2.50. The business has a fifty day simple moving average of $417.16 and a 200 day simple moving average of $285.68. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company had revenue of $10.25 billion for the quarter, compared to analysts' expectations of $9.90 billion. During the same quarter in the previous year, the firm earned $0.96 earnings per share. Advanced Micro Devices's quarterly revenue was up 37.8% on a year-over-year basis. On average, analysts expect that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insider Activity

In other news, EVP Mark D. Papermaster sold 31,320 shares of the company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $350.00, for a total value of $10,962,000.00. Following the completion of the sale, the executive vice president owned 1,236,037 shares in the company, valued at $432,612,950. This represents a 2.47% decrease in their position. The transaction 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 Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president owned 105,222 shares of the company's stock, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 378,032 shares of company stock worth $161,876,596. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of the company. Norges Bank purchased a new position in Advanced Micro Devices in the fourth quarter worth $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 valued at $2,336,552,000 after purchasing an additional 7,035,991 shares during the last quarter. Cardano Risk Management B.V. bought a new stake in shares of Advanced Micro Devices during the 4th quarter worth $1,000,783,000. Wellington Management Group LLP raised its stake in shares of Advanced Micro Devices by 335.9% during the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock worth $784,330,000 after purchasing an additional 3,735,807 shares during the period. Finally, Franklin Resources Inc. boosted its holdings in shares of Advanced Micro Devices by 340.1% in the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer's stock worth $1,016,796,000 after buying an additional 3,669,054 shares during the last quarter. 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.

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