Advanced Micro Devices (NASDAQ:AMD) Shares Gap Up - Still a Buy?

Key Points

• Advanced Micro Devices shares opened at $163.54 after gapping up from a previous close of $155.82, with a significant trading volume of 16,663,397 shares.
• Recent analyst reports show a positive outlook for AMD, with upgrades from various firms raising price targets significantly, including Wells Fargo's increase from $120.00 to $185.00.
• The company announced a buyback program worth $6 billion, indicating management's belief that the stock is undervalued amid insider sales by executives.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $155.82, but opened at $163.54. Advanced Micro Devices shares last traded at $161.38, with a volume of 16,663,397 shares traded.

Wall Street Analyst Weigh In

AMD has been the subject of a number of recent analyst reports. Wells Fargo & Company upped their price objective on shares of Advanced Micro Devices from $120.00 to $185.00 and gave the company an "overweight" rating in a research report on Wednesday, July 16th. The Goldman Sachs Group upgraded shares of Advanced Micro Devices to a "hold" rating and set a $140.00 price objective for the company in a research report on Thursday, July 10th. Piper Sandler upped their price objective on shares of Advanced Micro Devices from $140.00 to $190.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Benchmark upped their price objective on shares of Advanced Micro Devices from $170.00 to $210.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Finally, Melius upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 price objective for the company in a research report on Monday, June 23rd. Three analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $180.88.

Advanced Micro Devices Price Performance

The company's 50-day simple moving average is $161.95 and its 200-day simple moving average is $126.19. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.49 and a quick ratio of 1.81. The stock has a market capitalization of $260.17 billion, a price-to-earnings ratio of 92.20, a P/E/G ratio of 1.80 and a beta of 1.92.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.06). Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%.The business had revenue of $7.69 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same period in the prior year, the business posted $0.69 earnings per share. The firm's revenue for the quarter was up 31.7% compared to the same quarter last year. Advanced Micro Devices has set its Q3 2025 guidance at EPS. Research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices declared that its Board of Directors has approved a stock buyback program on Wednesday, May 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 3.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its shares are undervalued.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 10,000 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total value of $1,732,100.00. Following the transaction, the executive vice president directly owned 125,505 shares of the company's stock, valued at $21,738,721.05. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Lisa T. Su sold 225,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $163.97, for a total transaction of $36,893,250.00. Following the completion of the transaction, the chief executive officer directly owned 3,359,748 shares in the company, valued at $550,897,879.56. This trade represents a 6.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 252,998 shares of company stock valued at $41,415,580. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of the company. Pinney & Scofield Inc. grew its holdings in shares of Advanced Micro Devices by 81.0% during the second quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer's stock worth $27,000 after purchasing an additional 85 shares during the last quarter. Farmers & Merchants Trust Co of Chambersburg PA increased its position in Advanced Micro Devices by 277.8% in the 1st quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock valued at $28,000 after acquiring an additional 200 shares during the period. American Capital Advisory LLC raised its stake in shares of Advanced Micro Devices by 90.3% during the first quarter. American Capital Advisory LLC now owns 274 shares of the semiconductor manufacturer's stock valued at $28,000 after acquiring an additional 130 shares during the last quarter. Kozak & Associates Inc. increased its holdings in Advanced Micro Devices by 67.6% in the first quarter. Kozak & Associates Inc. now owns 305 shares of the semiconductor manufacturer's stock valued at $29,000 after purchasing an additional 123 shares during the period. Finally, Mpwm Advisory Solutions LLC bought a new position in Advanced Micro Devices during the 4th quarter worth $30,000. Institutional investors and hedge funds own 71.34% of the company's stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.