Advanced Micro Devices (NASDAQ:AMD) Sets New 1-Year High - Time to Buy?

Key Points

• AMD shares hit a new 52-week high, trading as high as $510.21 and closing near $495.54, reflecting strong recent momentum in the stock.
• Recent news has been upbeat for AMD’s data center and AI businesses, including 57% year-over-year data center revenue growth and a new collaboration with OneQode to deploy Instinct MI355X GPUs and Helios rack-scale solutions.
• Wall Street remains generally bullish, with multiple analysts raising targets and maintaining Buy ratings, though the stock’s high valuation and competitive pressure from Nvidia remain key risks.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares hit a new 52-week high during trading on Thursday . The stock traded as high as $510.21 and last traded at $495.54, with a volume of 27478010 shares changing hands. The stock had previously closed at $503.89.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD’s data center business remains a major growth engine, with one recent write-up highlighting 57% year-over-year data center revenue growth to $5.78 billion, driven by EPYC CPU demand and ramping Instinct AI products. Article title
• Positive Sentiment: AMD got a lift from a new OneQode collaboration to deploy AMD Instinct MI355X GPUs and plan for AMD’s Helios rack-scale solution, reinforcing demand for its AI infrastructure products. Article title
• Positive Sentiment: Analyst commentary remains constructive, with multiple recent notes describing AMD as a beneficiary of the AI spending cycle and highlighting upside tied to continued data center and CPU gains. Article title
• Neutral Sentiment: Some articles focused on AMD’s rapid valuation expansion and the question of whether the stock can become a trillion-dollar company, which keeps expectations high but does not change the near-term growth story. Article title
• Negative Sentiment: Sentiment was pressured by reports that Cathie Wood continued trimming AMD exposure, and by concerns that Nvidia could move into the standalone server CPU market, increasing competitive pressure on AMD’s growth areas. Article title Article title

Wall Street Analysts Forecast Growth

AMD has been the topic of several research analyst reports. Erste Group Bank raised Advanced Micro Devices from a "hold" rating to a "buy" rating in a report on Thursday, April 2nd. Truist Financial set a $478.00 price objective on Advanced Micro Devices in a report on Wednesday, May 6th. HSBC lowered Advanced Micro Devices from a "buy" rating to a "hold" rating and raised their price objective for the company from $335.00 to $340.00 in a report on Monday, May 4th. Evercore reissued an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Finally, TD Cowen raised their price objective on Advanced Micro Devices from $290.00 to $500.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $410.00.

Advanced Micro Devices Stock Performance

The firm has a market cap of $808.03 billion, a PE ratio of 162.47, a P/E/G ratio of 1.48 and a beta of 2.40. The firm has a 50-day moving average price of $315.01 and a two-hundred day moving average price of $251.86. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business's quarterly revenue was up 37.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.96 earnings per share. Research analysts forecast that Advanced Micro Devices, Inc. will post 6.2 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $444.39, for a total value of $10,832,450.64. Following the transaction, the executive vice president owned 105,222 shares in the company, valued at $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the transaction, the executive vice president owned 324,527 shares in the company, valued at approximately $140,000,947.80. This trade represents a 5.66% 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 329,085 shares of company stock worth $114,051,007. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors have recently added to or reduced their stakes in the stock. Allen Capital Group LLC lifted its position in Advanced Micro Devices by 14.3% during the first quarter. Allen Capital Group LLC now owns 3,091 shares of the semiconductor manufacturer's stock worth $629,000 after buying an additional 386 shares in the last quarter. Westshore Wealth LLC purchased a new position in Advanced Micro Devices during the first quarter worth approximately $333,000. Serenity Investment Advisors purchased a new position in Advanced Micro Devices during the first quarter worth approximately $92,000. Glenmede Trust Co. NA lifted its position in Advanced Micro Devices by 3.7% during the first quarter. Glenmede Trust Co. NA now owns 44,224 shares of the semiconductor manufacturer's stock worth $8,996,000 after buying an additional 1,560 shares in the last quarter. Finally, Axiom Investment Management LLC purchased a new position in Advanced Micro Devices during the first quarter worth approximately $252,000. Hedge funds and other 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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