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

Key Points

• DA Davidson upgraded AMD from Neutral to Buy and raised its price target to $375 (from $220), driving a premarket gap up from a $305.33 close to a $336.76 open and sending the stock up more than 13%.
• AMD beat expectations for the quarter with EPS $1.53 (vs. $1.32 est.) and revenue of $10.27B, up 34.1% year-over-year, though the shares trade at a lofty valuation (market cap ≈ $565.9B; P/E ≈ 130.6).
• Potential near-term risks include significant insider selling (273,352 shares worth about $59.2M over the last 90 days) and analyst warnings of a possible sequential gross-margin contraction (~200 bps).

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price gapped up prior to trading on Friday after DA Davidson upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $305.33, but opened at $336.76. DA Davidson now has a $375.00 price target on the stock, up from their previous price target of $220.00. Advanced Micro Devices shares last traded at $343.2450, with a volume of 21,415,588 shares traded.

AMD has been the subject of a number of other research reports. Roth Mkm reissued a "buy" rating on shares of Advanced Micro Devices in a research report on Tuesday, February 24th. Mizuho raised their price objective on Advanced Micro Devices from $275.00 to $280.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 25th. Morgan Stanley lowered their price objective on Advanced Micro Devices from $260.00 to $255.00 and set an "equal weight" rating for the company in a research report on Wednesday, February 4th. Sanford C. Bernstein raised their price objective on Advanced Micro Devices from $235.00 to $265.00 and gave the stock a "market perform" rating in a research report on Thursday, April 16th. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $345.00 target price on shares of Advanced Micro Devices in a research note on Friday, January 30th. One 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's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $296.44.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 7,500 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $204.87, for a total value of $1,536,525.00. Following the completion of the transaction, the executive vice president owned 129,598 shares in the company, valued at $26,550,742.26. This trade represents a 5.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Mark D. Papermaster sold 27,109 shares of the firm's stock in a transaction on Thursday, April 16th. The stock was 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 273,352 shares of company stock worth $59,173,070. Insiders own 0.50% of the company's stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: DA Davidson upgraded AMD from Neutral to Buy and set a $375 price target (about a ~22.8% upside from the cited reference price), giving fresh buy-side conviction and likely driving part of the rally. DA Davidson Upgrade
• Positive Sentiment: Stifel raised its price target (to $320) and other firms have boosted targets, reinforcing the narrative that AMD is positioned to capture accelerating AI/GPU demand — this analyst activity lifted investor confidence. Why Stifel Raised AMD Target
• Positive Sentiment: AMD is riding sector strength after Intel’s strong earnings and upbeat guidance — Intel’s report reignited AI/semiconductor optimism and helped AMD and peers gap higher in premarket trading. Stock Market Today: Intel Soars; AMD Tags Along
• Positive Sentiment: Product catalyst: the new Ryzen 9 9950X3D2 Dual Edition CPU launch is boosting sentiment that AMD can expand high-margin gaming and consumer revenue, supporting upside expectations. Ryzen 9 Launch
• Neutral Sentiment: Broader narrative pieces and flow commentary note AMD as a top AI play, which supports longer-term conviction but may already be priced in after the recent run. AMD Top AI Stock Discussion
• Neutral Sentiment: Momentum: AMD recently hit fresh record highs and is attracting more attention; momentum can amplify intraday moves but raises questions about near-term valuation. AMD Hits All-Time High
• Negative Sentiment: Institutional position change: IFM Investors’ 13F filing shows a large reported reduction in AMD shares, a potential selling pressure signal (may reflect rebalancing or profit-taking). IFM Investors 13F Update
• Negative Sentiment: Margin headwind: AMD warned of a sequential gross-margin contraction (Zacks notes a possible ~200 bps dip), a reminder that some short-term profitability pressure exists despite revenue growth. AMD Margin Outlook

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors have recently modified their holdings of AMD. Impax Asset Management Group plc boosted its holdings in Advanced Micro Devices by 326.5% in the 3rd quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer's stock worth $8,424,000 after buying an additional 39,861 shares during the last quarter. Zweig DiMenna Associates LLC boosted its holdings in Advanced Micro Devices by 127.6% in the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer's stock worth $11,746,000 after buying an additional 40,708 shares during the last quarter. Wedbush Securities Inc. boosted its holdings in Advanced Micro Devices by 7.8% in the 3rd quarter. Wedbush Securities Inc. now owns 84,256 shares of the semiconductor manufacturer's stock worth $13,632,000 after buying an additional 6,095 shares during the last quarter. Highline Wealth Partners LLC boosted its holdings in Advanced Micro Devices by 4,891.6% in the 4th quarter. Highline Wealth Partners LLC now owns 8,286 shares of the semiconductor manufacturer's stock worth $1,775,000 after buying an additional 8,120 shares during the last quarter. Finally, William Blair Investment Management LLC boosted its holdings in Advanced Micro Devices by 72.5% in the 3rd quarter. William Blair Investment Management LLC now owns 1,047,200 shares of the semiconductor manufacturer's stock worth $169,426,000 after buying an additional 440,296 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Trading Up 13.7%

The company has a current ratio of 2.85, a quick ratio of 2.01 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $565.91 billion, a price-to-earnings ratio of 130.60, a PEG ratio of 1.10 and a beta of 1.96. The company has a fifty day moving average of $218.99 and a 200-day moving average of $224.08.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.21. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The company had revenue of $10.27 billion for the quarter, compared to analysts' expectations of $9.65 billion. During the same period in the previous year, the firm posted $1.09 EPS. Advanced Micro Devices's revenue was up 34.1% compared to the same quarter last year. As a group, equities research analysts anticipate that Advanced Micro Devices, Inc. will post 5.78 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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