Advanced Micro Devices (NASDAQ:AMD) Shares Up 1.5% on Analyst Upgrade

Key Points

• AMD shares rose 1.5% after Argus raised its price target from $450 to $625 and maintained a Buy rating. The stock traded near $489, while the analyst consensus remained a Moderate Buy with a $542.53 target.
• AMD reported strong quarterly results, with revenue increasing 50.1% year over year to $11.54 billion and EPS of $1.66 topping estimates. Data Center growth and upbeat third-quarter guidance continue to support the company’s AI-driven outlook.
• Despite bullish analyst sentiment, AMD faces elevated valuation, competition and execution risks. Insiders sold roughly $141.2 million of stock last quarter, while the company’s high beta and demanding expectations could contribute to volatility.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) was up 1.5% during mid-day trading on Thursday after Argus raised their price target on the stock from $450.00 to $625.00. Argus currently has a buy rating on the stock. Advanced Micro Devices traded as high as $496.72 and last traded at $489.28. 24,176,144 shares traded hands during trading, a decline of 33% from the average daily volume of 36,229,359 shares. The stock had previously closed at $482.05.

AMD has been the subject of several other reports. Morgan Stanley lifted their price target on Advanced Micro Devices from $410.00 to $465.00 and gave the company an "equal weight" rating in a research report on Wednesday. Seaport Research Partners raised Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price objective on the stock in a report on Wednesday, May 6th. Northland Securities reiterated a "market perform" rating and issued a $260.00 target price on shares of Advanced Micro Devices in a research report on Monday, April 27th. Raymond James Financial started coverage on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. They set a "market perform" rating for the company. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $542.53.

Insider Activity

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the sale, the executive vice president owned 324,527 shares of the company's stock, valued at approximately $140,000,947.80. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the completion of the transaction, the chief executive officer directly owned 2,896,899 shares of the company's stock, valued at $1,334,572,400.31. This represents a 4.14% 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. Insiders have sold 310,310 shares of company stock worth $141,185,456 in the last quarter. Insiders own 0.50% of the company's stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Analysts continue to raise their expectations. Rosenblatt lifted its price target to $700 and maintained a Buy rating, while Jefferies and Truist also raised targets despite the initial earnings reaction. Advanced Micro Devices Stock is Rising: What's Happening?
• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50% year over year, and adjusted EPS of $1.66, exceeding consensus estimates. Data Center revenue more than doubled to approximately $6.7 billion, supporting the bullish view that AI demand is expanding beyond GPUs into server CPUs and broader infrastructure. AMD Q2 Earnings Beat Estimates, Strong Data Center Aids Revenue Growth
• Positive Sentiment: Management’s outlook remains ambitious: third-quarter revenue guidance of $12.7 billion to $13.3 billion exceeded Wall Street’s estimate, while AMD expects Data Center revenue to more than double in 2027 as its Helios AI platform ramps. Discussions about longer-term China supply agreements could provide an additional opportunity, although regulatory uncertainty remains. AI Workloads Drive CPU Demand as AMD Discusses Longer-Term China Deals
• Neutral Sentiment: Wall Street’s conviction in AMD’s AI strategy has largely held, with several firms maintaining Buy or Outperform ratings. However, the stock’s valuation and high beta leave it particularly sensitive to changes in growth expectations. AMD's Selloff Is Not Shaking Wall Street's AI Conviction
• Negative Sentiment: The earnings selloff reflected an exceptionally high bar: investors wanted faster AI growth, stronger margins and clearer evidence that AMD can take share from Nvidia. The company’s higher capital spending also raised concerns about near-term profitability and execution. AMD's Beat-and-Raise Q2 Earnings Shows Just How High the AI Bar Is
• Negative Sentiment: Competitive and market risks remain. Elon Musk’s indication that SpaceX will use Nvidia chips exclusively weighed on AMD’s AI narrative, while a weaker SanDisk outlook pressured semiconductor shares more broadly. Short volume also reached a two-week high, signaling that some traders expect continued volatility. Sell alert? AMD stock short volume hits 2-week high amid earnings drop

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Silverlake Wealth Management LLC lifted its holdings in Advanced Micro Devices by 6.5% in the second quarter. Silverlake Wealth Management LLC now owns 1,398 shares of the semiconductor manufacturer's stock valued at $812,000 after acquiring an additional 85 shares during the period. Sandro Wealth Management LLC lifted its position in shares of Advanced Micro Devices by 8.1% in the second quarter. Sandro Wealth Management LLC now owns 1,470 shares of the semiconductor manufacturer's stock valued at $854,000 after acquiring an additional 110 shares in the last quarter. Leeward Financial Partners LLC purchased a new position in Advanced Micro Devices in the 2nd quarter valued at about $238,000. Prospect Financial Services LLC boosted its position in Advanced Micro Devices by 46.6% during the second quarter. Prospect Financial Services LLC now owns 2,142 shares of the semiconductor manufacturer's stock worth $1,244,000 after acquiring an additional 681 shares during the last quarter. Finally, State of Wyoming boosted its holdings in shares of Advanced Micro Devices by 87.9% during the second quarter. State of Wyoming now owns 5,431 shares of the semiconductor manufacturer's stock worth $3,155,000 after purchasing an additional 2,540 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Advanced Micro Devices Stock Up 1.5%

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 firm has a fifty day simple moving average of $515.79 and a 200 day simple moving average of $356.42. The company has a market cap of $797.82 billion, a PE ratio of 125.78 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.52% and a net margin of 15.58%.The firm had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the business earned $0.48 earnings per share. The firm's quarterly revenue was up 50.1% compared to the same quarter last year. Equities research analysts predict that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

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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