Advanced Micro Devices (NASDAQ:AMD) Shares Gap Up Following Analyst Upgrade

Key Points

• AMD shares gapped up after Wall Street Zen upgraded the stock from hold to buy, opening at $517.00 versus a prior close of $495.76 and trading higher in heavy volume.
• Analyst sentiment remains broadly positive: recent moves include upgrades from Needham and Stifel, while MarketBeat data shows AMD still carries an average rating of Moderate Buy with a target price of $468.65.
• AMD’s fundamental and strategic backdrop also looks supportive, with Microsoft set to deploy AMD’s Helios rack-scale AI systems and expand its partnership around next-gen Instinct and EPYC processors, reinforcing AMD’s push in AI data centers.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price gapped up prior to trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $495.76, but opened at $517.00. Advanced Micro Devices shares last traded at $513.14, with a volume of 5,356,633 shares trading hands.

AMD has been the subject of a number of other reports. Needham & Company LLC raised shares of Advanced Micro Devices to a "buy" rating in a research note on Wednesday, May 6th. Morgan Stanley lifted their target price on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Oppenheimer lowered shares of Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a report on Wednesday, May 6th. Stifel Nicolaus upped their price target on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Finally, Citigroup lowered shares of Advanced Micro Devices from a "buy" rating to a "market perform" rating in a research note on Friday, June 12th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $468.65.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the transaction, the executive vice president owned 1,236,037 shares of the company's stock, valued at $432,612,950. The trade was 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, Director Nora Denzel sold 8,626 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares in the company, valued at $45,504,306. This represents a 9.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 341,630 shares of company stock worth $152,147,456. Company insiders own 0.50% of the company's stock.

More Advanced Micro Devices News

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

• Positive Sentiment: Microsoft said it will deploy AMD’s new Helios rack-scale AI systems in Azure, a major validation of AMD’s strategy and a sign that the company is gaining traction in large-scale AI data centers. AMD launches Helios, its first rack AI system to rival Nvidia, adding Microsoft as newest buyer
• Positive Sentiment: AMD also announced a broader long-term partnership with Microsoft, including next-gen Instinct and EPYC processors and backend networking support, reinforcing its position in AI and cloud infrastructure. Microsoft to Deploy Next-Gen AMD Instinct and AMD EPYC Processors as the Companies Expand Their Long-Term Strategic Partnership
• Positive Sentiment: Analysts and market watchers are pointing to AMD’s upcoming “Advancing AI” event as a potential catalyst, with expectations for MI450x, MI500 and 2nm Venice CPU updates that could drive sentiment further. What's Going on With AMD Stock Monday?
• Neutral Sentiment: Broader semiconductor shares are rebounding after a recent sell-off, which is helping AMD move higher along with other AI chip names. SK Hynix Jumps 5%, AMD Rises 4% as Korea Becomes the New Catalyst for Global Chip Stocks
• Neutral Sentiment: Commentary around AMD’s valuation remains mixed, with some articles arguing the stock still trades at a premium and may need strong execution to justify recent gains. AMD vs. Broadcom: The Better AI-Chip Stock to Buy After the Sell-Off
• Negative Sentiment: Some broader chip-market articles warn that the semiconductor sector has entered a bear market, highlighting continued investor concern that the AI spending boom could cool. Semiconductor stocks enter bear market: Is bubble burst next?

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the company. Joseph Group Capital Management bought a new position in shares of Advanced Micro Devices during the 4th quarter valued at $25,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the fourth quarter valued at about $27,000. Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices in the 4th quarter worth approximately $27,000. Basepoint Wealth LLC acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $30,000. Finally, Graney & King LLC bought a new position in Advanced Micro Devices during the 1st quarter valued at about $31,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Stock Up 3.0%

The business's 50 day moving average price is $503.89 and its 200-day moving average price is $330.45. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company has a market cap of $833.04 billion, a P/E ratio of 167.37, a PEG ratio of 1.43 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts' consensus estimates 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 analyst estimates of $9.90 billion. During the same quarter in the previous year, the firm earned $0.96 earnings per share. The business's revenue was up 37.8% on a year-over-year basis. On average, analysts anticipate that Advanced Micro Devices, Inc. will post 6.26 earnings per share for the current fiscal year.

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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