Advanced Micro Devices (NASDAQ:AMD) Sets New 52-Week High - Should You Buy?

Key Points

• AMD shares hit a new 52-week high, trading as high as $481.41 and continuing a strong rally in the stock. The move came alongside heavy trading volume and a sharp run above recent moving averages.
• Fundamental and AI-related news are driving optimism, including AMD’s plan to invest more than $10 billion in Taiwan, ramp production of its “Venice” EPYC CPUs on TSMC’s 2nm process, and management’s comments that AI customers still need more compute capacity.
• Recent earnings and Wall Street sentiment remain supportive, with AMD beating Q1 expectations on revenue and EPS, while analysts have mostly kept bullish views despite the stock’s steep valuation. Insider selling has occurred, but institutional ownership remains high.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price reached a new 52-week high during trading on Friday . The company traded as high as $481.41 and last traded at $465.3440, with a volume of 4723892 shares. The stock had previously closed at $449.59.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD said it will invest over $10 billion in Taiwan to expand partnerships and advanced packaging capacity for AI infrastructure, which could support future growth and supply availability. Reuters: AMD says it will invest over $10 billion across Taiwan's AI ecosystem
• Positive Sentiment: AMD began ramping production of its “Venice” EPYC CPUs on TSMC’s 2nm technology, a milestone that suggests it is advancing its AI and data-center roadmap ahead of rivals. GlobeNewswire: AMD Announces Production Ramp of Next-Generation AMD EPYC Processor Venice on TSMC 2nm Process Technology
• Positive Sentiment: Management said AI customers need more compute capacity, and Lisa Su stated AMD is asking partners to ramp production because demand remains strong, which signals potential revenue momentum. Reuters: AMD asking partners to ramp up production, CEO says
• Positive Sentiment: Recent earnings also supported the rally: AMD beat Q1 expectations with revenue of $10.25 billion, while data-center revenue rose sharply year over year, reinforcing optimism around the AI trade. TipRanks: AMD Stock Hits All-Time High as Nvidia Earnings Boost Confidence in the AI Trade

Analyst Ratings Changes

A number of equities analysts have recently commented on AMD shares. JPMorgan Chase & Co. increased their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Cantor Fitzgerald lifted their price target on Advanced Micro Devices to $500.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Morgan Stanley lifted their price target on Advanced Micro Devices from $360.00 to $410.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 6th. Piper Sandler reiterated an "overweight" rating on shares of Advanced Micro Devices in a report on Wednesday, February 25th. Finally, Needham & Company LLC upgraded Advanced Micro Devices to a "buy" rating in a research note on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and a consensus target price of $410.00.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $772.11 billion, a P/E ratio of 154.98, a PEG ratio of 1.33 and a beta of 2.40. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The company's fifty day simple moving average is $292.17 and its two-hundred day simple moving average is $245.31.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly 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 firm had revenue of $10.25 billion for the quarter, compared to analysts' expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business's revenue was up 37.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.96 EPS. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction dated 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 transaction, the executive vice president directly owned 1,236,037 shares of the company's stock, valued at $432,612,950. This represents a 2.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer directly owned 3,021,899 shares in the company, valued at approximately $1,346,286,223.49. This represents a 3.97% 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 a total of 309,598 shares of company stock valued at $105,644,316 in the last three months. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Clal Insurance Enterprises Holdings Ltd increased its holdings in shares of Advanced Micro Devices by 12.8% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer's stock worth $43,000 after purchasing an additional 24 shares during the period. CLG LLC increased its holdings in shares of Advanced Micro Devices by 3.1% during the first quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer's stock worth $205,000 after purchasing an additional 30 shares during the period. Columbia Bank increased its holdings in shares of Advanced Micro Devices by 0.7% during the first quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer's stock worth $1,055,000 after purchasing an additional 34 shares during the period. Evolution Wealth Management Inc. increased its holdings in shares of Advanced Micro Devices by 11.0% during the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer's stock worth $72,000 after purchasing an additional 35 shares during the period. Finally, Focused Wealth Management Inc increased its holdings in shares of Advanced Micro Devices by 2.7% during the first quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer's stock worth $291,000 after purchasing an additional 37 shares during the period. 71.34% of the stock is owned by institutional investors.

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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