Advanced Micro Devices (NASDAQ:AMD) Shares Up 1.6% Following Analyst Upgrade

Key Points

• AMD shares rose 1.6% after Wall Street Zen upgraded the stock from hold to buy, with the stock trading as high as $522.44 during the session.
• Analyst sentiment remains broadly positive, with multiple firms recently issuing upbeat calls or higher price targets. MarketBeat says AMD currently has a consensus rating of “Moderate Buy” and an average price target of $468.65.
• AI-related catalysts are driving optimism, including Microsoft’s plan to deploy AMD’s next-generation Helios systems on Azure and expectations for new product announcements at AMD’s upcoming “Advancing AI” event.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) traded up 1.6% during mid-day trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $522.44 and last traded at $503.57. 23,245,849 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 36,629,332 shares. The stock had previously closed at $495.76.

A number of other research analysts also recently issued reports on AMD. William Blair started coverage on Advanced Micro Devices in a report on Thursday, July 9th. They issued a "market perform" rating on the stock. Weiss Ratings raised Advanced Micro Devices from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, May 6th. HSBC lowered Advanced Micro Devices from a "buy" rating to a "hold" rating and lifted their target price for the company from $335.00 to $340.00 in a research note on Monday, May 4th. Evercore reissued an "outperform" rating and set a $579.00 price target on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. Finally, Cantor Fitzgerald raised their price target on shares of Advanced Micro Devices from $500.00 to $700.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $468.65.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the sale, the executive vice president owned 105,222 shares of the company's stock, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Mark D. Papermaster sold 6,000 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the transaction, the executive vice president directly owned 1,233,687 shares of the company's stock, valued at approximately $661,663,348.71. This represents a 0.48% 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. In the last three months, insiders have sold 341,630 shares of company stock valued at $152,147,456. Insiders own 0.50% of the company's stock.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Microsoft said it will deploy AMD’s next-generation Helios rack-scale AI systems on Azure, along with new AMD EPYC CPUs and Pensando networking gear. That gives AMD a major cloud customer and suggests meaningful future revenue from AI infrastructure. Microsoft to Deploy Next-Gen AMD Instinct and AMD EPYC Processors as the Companies Expand Their Long-Term Strategic Partnership
• Positive Sentiment: Several Wall Street analysts raised price targets ahead of AMD’s July 22 “Advancing AI” event, with expectations that the company could showcase its MI450x, MI500, and 2nm Venice roadmap. Investors appear to be betting on more AI wins and stronger guidance. AMD’s Big AI Moment Is Here: 6 Wall Street Analysts Just Placed Their Bets
• Positive Sentiment: Chip stocks are broadly rebounding, and AMD is moving with the group as investors rotate back into semiconductors after the recent selloff. AMD, Micron, SK Hynix lead chip stock recovery
• Neutral Sentiment: AMD is also getting attention from bullish commentary ahead of the AI event, with analysts saying the company’s biggest near-term catalyst may be new product and customer announcements. AMD Stock Rises on Vote of Confidence From a Big AI Chip Customer
• Negative Sentiment: One cautious take argues AMD’s bullish case still depends on Nvidia stumbling, highlighting that the stock’s valuation leaves little room for disappointment if the company fails to keep executing on AI. AMD: The Bull Case Requires Nvidia To Fail

Institutional Trading of Advanced Micro Devices

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Advanced Micro Devices by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer's stock worth $33,949,256,000 after buying an additional 2,525,109 shares during the last quarter. State Street Corp increased its stake in shares of Advanced Micro Devices by 1.5% in the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer's stock worth $16,044,712,000 after acquiring an additional 1,094,835 shares during the period. Geode Capital Management LLC lifted its position in Advanced Micro Devices by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer's stock valued at $8,015,897,000 after purchasing an additional 287,525 shares during the period. Norges Bank acquired a new stake in Advanced Micro Devices during the 4th quarter worth about $4,929,312,000. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Advanced Micro Devices by 0.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer's stock valued at $4,352,864,000 after buying an additional 55,969 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Trading Up 1.6%

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The firm has a market cap of $821.12 billion, a price-to-earnings ratio of 165.11, a PEG ratio of 1.43 and a beta of 2.47. The company has a fifty day moving average price of $503.89 and a 200-day moving average price of $330.45.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced 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. 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 during the quarter, compared to analysts' expectations of $9.90 billion. During the same period last year, the business earned $0.96 earnings per share. Advanced Micro Devices's quarterly revenue was up 37.8% on a year-over-year basis. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.26 EPS for the current 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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