Advanced Micro Devices (NASDAQ:AMD) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded AMD from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $546.87.
• AMD exceeded quarterly expectations, reporting $1.66 in earnings per share and $11.54 billion in revenue, with revenue increasing 50.1% year over year.
• AMD shares opened at $514.39, while recent insider transactions showed executives selling a combined 161,077 shares worth approximately $74.7 million; institutional investors own 71.34% of the stock.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Other equities research analysts also recently issued research reports about the stock. Needham & Company LLC upgraded shares of Advanced Micro Devices to a "buy" rating in a research report on Wednesday, May 6th. HSBC cut Advanced Micro Devices from a "buy" rating to a "hold" rating and boosted their target price for the stock from $335.00 to $340.00 in a research report on Monday, May 4th. Zacks Research raised Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 3rd. Truist Financial raised their price target on Advanced Micro Devices from $478.00 to $594.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, 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. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $546.87.

Advanced Micro Devices Stock Performance

Shares of AMD opened at $514.39 on Friday. The stock has a market capitalization of $839.73 billion, a P/E ratio of 132.23 and a beta of 2.48. 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 has a 1 year low of $149.22 and a 1 year high of $584.73. The company's fifty day moving average is $511.77 and its two-hundred day moving average is $367.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The company 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 was up 50.1% on a year-over-year basis. During the same quarter last year, the business earned $0.48 EPS. On average, sell-side analysts predict that Advanced Micro Devices will post 6.44 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 2,896,899 shares in the company, valued at approximately $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The transaction 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 Forrest Eugene Norrod sold 19,487 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the sale, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This trade represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 161,077 shares of company stock valued at $74,732,145 in the last 90 days. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

A number of institutional investors have recently bought and sold shares of AMD. Vanguard Group Inc. boosted its position in shares of Advanced Micro Devices by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer's stock worth $33,949,256,000 after buying an additional 2,525,109 shares in the last quarter. BlackRock Inc. increased its holdings in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock valued at $87,311,650,000 after acquiring an additional 4,535,126 shares in the last quarter. State Street Corp raised its position in Advanced Micro Devices by 1.5% during the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer's stock worth $16,044,712,000 after acquiring an additional 1,094,835 shares during the last quarter. Geode Capital Management LLC raised its position in Advanced Micro Devices by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer's stock worth $8,015,897,000 after acquiring an additional 287,525 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at about $4,929,312,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

More Advanced Micro Devices News

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

• Positive Sentiment: Baird issued a highly bullish $1,250 price target, reinforcing the view that AMD’s AI accelerator and data-center businesses could expand substantially. Broadcom Sinks as AMD Climbs on Baird’s Call
• Positive Sentiment: AMD announced day-one support for the Qwen3.8 27B AI model, a development that may improve adoption of its chips and software among AI developers and data-center customers. AMD Supports Qwen3.8 27B AI Model
• Positive Sentiment: Bank of America raised its 2030 server-CPU market forecast to more than $210 billion from roughly $170 billion, citing demand from AI agents. AMD was identified as one of the bank’s preferred semiconductor investments. Bank of America Raises AI Chip Forecast
• Positive Sentiment: AMD is preparing a record bond offering of up to $5 billion to finance AI infrastructure, partnerships and other corporate needs. The funding could support its Helios platform and large customer commitments, including from Microsoft and AI companies. AMD Plans $5 Billion Bond Sale
• Neutral Sentiment: Institutional activity was mixed: Mirova disclosed a new AMD position worth approximately $145 million, while other funds reported reductions. Because these filings reflect holdings as of June 30, they provide limited insight into current positioning. Mirova Opens AMD Position
• Negative Sentiment: Risks include AMD’s demanding valuation, the added leverage from the bond sale and competitive pressure after reports that SpaceX plans to use Nvidia chips exclusively. Recent insider trading data also shows selling, although the reported sale by SVP Ava Hahn was made under a prearranged Rule 10b5-1 plan. SpaceX Selects Nvidia Exclusively

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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