Advanced Micro Devices (NASDAQ:AMD) Rating Increased to Buy at DA Davidson

Key Points

• DA Davidson upgraded AMD from "neutral" to buy with a $375 price target, implying roughly a 22.8% upside from the prior close.
• AMD beat its most recent quarterly estimates with $1.53 EPS (vs. $1.32 expected) and $10.27B revenue (vs. $9.65B), a 34.1% year‑over‑year revenue increase.
• Multiple analyst upgrades and product/sector catalysts (e.g., Ryzen launch, strong Intel results) are driving momentum, but analysts flag possible sequential gross‑margin pressure and there has been notable insider selling.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was upgraded by equities researchers at DA Davidson from a "neutral" rating to a "buy" rating in a report issued on Friday. The brokerage currently has a $375.00 price objective on the semiconductor manufacturer's stock. DA Davidson's price objective would indicate a potential upside of 22.82% from the stock's previous close.

Several other equities analysts have also commented on the stock. Evercore restated an "outperform" rating and issued a $358.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, February 24th. Erste Group Bank upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a report on Thursday, April 2nd. Stifel Nicolaus boosted their target price on Advanced Micro Devices from $280.00 to $320.00 and gave the company a "buy" rating in a research report on Monday. Piper Sandler restated an "overweight" rating on shares of Advanced Micro Devices in a research report on Wednesday, February 25th. Finally, Phillip Securities raised Advanced Micro Devices from a "moderate buy" rating to a "strong-buy" rating in a research note on Sunday, February 8th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $296.44.

Advanced Micro Devices Stock Up 0.6%

Shares of AMD opened at $305.33 on Friday. The firm has a market cap of $497.79 billion, a P/E ratio of 115.22, a price-to-earnings-growth ratio of 1.10 and a beta of 1.96. Advanced Micro Devices has a 12-month low of $90.37 and a 12-month high of $310.22. The company's 50-day moving average price is $218.99 and its 200 day moving average price is $224.08. The company has a current ratio of 2.85, a quick ratio of 2.01 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.21. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The company had revenue of $10.27 billion for the quarter, compared to analysts' expectations of $9.65 billion. During the same quarter in the prior year, the company posted $1.09 earnings per share. Advanced Micro Devices's revenue for the quarter was up 34.1% compared to the same quarter last year. On average, sell-side analysts forecast that Advanced Micro Devices will post 5.78 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 27,109 shares of the firm's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $275.00, for a total value of $7,454,975.00. Following the completion of the transaction, the executive vice president owned 1,267,357 shares of the company's stock, valued at $348,523,175. This trade represents a 2.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 7,500 shares of the business's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $204.87, for a total transaction of $1,536,525.00. Following the completion of the transaction, the executive vice president owned 129,598 shares of the company's stock, valued at approximately $26,550,742.26. This trade represents a 5.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 273,352 shares of company stock worth $59,173,070. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several large investors have recently bought and sold shares of AMD. Joseph Group Capital Management acquired a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $25,000. ORG Wealth Partners LLC grew its holdings in Advanced Micro Devices by 39.7% during the 3rd quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 46 shares in the last quarter. Koesten Hirschmann & Crabtree INC. increased its position in shares of Advanced Micro Devices by 61.0% in the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Finally, Cornerstone Financial Management LLC acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $27,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Stifel raised its price target to $320, cited accelerating AI demand and lifted investor conviction in AMD’s upside. This fresh Wall Street upgrade is a key driver of today's rally. Stifel Hikes AMD Target
• Positive Sentiment: AMD launched the Ryzen 9 9950X3D2 (Dual Edition), a premium CPU that boosts AMD’s positioning in high‑end gaming and could support better ASPs and margins in PC and gaming channels. Product strength fuels sentiment around future revenue and margins. Ryzen 9950X3D2 Launch
• Positive Sentiment: Intel’s blowout Q1 and upbeat guidance lifted sentiment across the chip sector; AMD and Arm shares popped on the “coattail” effect as investors re‑price AI/CPU demand expectations higher. Sector momentum is amplifying AMD’s move. AMD and Arm Pop After Intel
• Positive Sentiment: Analyst upgrades and institutional flows have been significant this week (multiple price‑target raises and coverage notes), helping drive momentum into new all‑time highs and pre‑market jumps. AMD Stock Surges on Upgrades
• Neutral Sentiment: Macro headwinds (risk from the US‑Iran conflict and higher oil prices) kept futures mixed; traders showed reluctance to extend broad markets too far into the weekend despite chip optimism. This may limit upside breadth. Dow Futures Tumble
• Negative Sentiment: IFM Investors’ 13F filing shows a large estimated decrease (~324k shares) in its AMD position for the March quarter, a potential sign of institutional trimming that could pressure the stock if others follow. Note 13F data lag and may not reflect current flows. IFM Investors 13F Update
• Negative Sentiment: AMD flagged potential sequential gross‑margin pressure (Zacks warns of a ~200bp drop as one‑time gains fade and seasonal weakness hits), which could temper longer‑term margin expectations and set a higher bar for upcoming earnings. Margin Contraction Warning

About Advanced Micro Devices

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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