Advanced Micro Devices (NASDAQ:AMD) Shares Up 1.8% - Here's Why

Key Points

• AMD shares rose 1.8% to $482.93 amid positive developments, including an Oxford BOLD research collaboration, expanding AI infrastructure demand, and a partnership with Core Scientific involving at least 500 megawatts of planned data-center capacity.
• AMD reported strong quarterly results, with revenue up 50.1% year over year to $11.54 billion and EPS of $1.66, beating analyst estimates. Analysts’ overall rating is “Moderate Buy,” with an average price target of $546.87.
• Investor sentiment remains mixed: Bessemer Group added about 1.14 million shares, but other institutions reduced positions, while analysts caution that AMD’s valuation—about 63 times forward earnings in one analysis—leaves limited room for execution disappointments.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 1.8% during trading on Wednesday . The stock traded as high as $491.69 and last traded at $482.93. Approximately 18,185,361 shares changed hands during trading, a decline of 49% from the average daily volume of 35,824,480 shares. The stock had previously closed at $474.32.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD announced a collaboration with the University of Oxford’s BOLD initiative, supporting research and development involving advanced computing and AI. The agreement adds to the company’s technology ecosystem and helped improve investor sentiment. AMD Stock Jumps Over 2% on a New MOU With the University of Oxford’s BOLD
• Positive Sentiment: Recent commentary points to growing AI infrastructure demand as a catalyst for AMD. Super Micro Computer’s results and outlook appear to have reinforced expectations for continued accelerator demand, while AMD’s data-center revenue recently more than doubled and management raised guidance. Why Is AMD Stock Up Today?
• Positive Sentiment: AMD’s partnership with Core Scientific, involving more than 500 megawatts of U.S. data-center capacity beginning in 2027 and potential expansion to 2.5 gigawatts, strengthens the company’s long-term AI infrastructure narrative. Core Scientific Rises on AMD Tie-Up
• Positive Sentiment: Bessemer Group reportedly added approximately 1.14 million AMD shares, a sizable increase in its latest quarterly portfolio disclosure. The move may be viewed as institutional confidence in AMD’s AI growth prospects, although 13F data is backward-looking and estimates may contain errors. Bessemer Group AMD Holdings Update
• Neutral Sentiment: Optiver completely exited an estimated 326,280-share AMD position, while Amundi and ProShare Advisors also reduced their holdings. These sales contrast with Bessemer’s buying and signal mixed institutional positioning. Optiver Holdings Update
• Negative Sentiment: At roughly 63 times forward earnings, AMD trades at a substantial premium to Nvidia, according to one analysis. Critics argue that AMD’s smaller scale, slower growth, and already-strong share performance leave limited room for execution disappointments. AMD Trades at 63x Forward Earnings

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. BTIG Research upgraded shares of Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Bank of America upped their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Northland Securities reaffirmed 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. Barclays cut Advanced Micro Devices from an "overweight" rating to an "underweight" rating in a report on Friday, June 12th. Finally, Citigroup raised Advanced Micro Devices from a "market perform" rating to a "buy" rating in a research report on Wednesday, July 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $546.87.

Advanced Micro Devices Stock Up 1.8%

The firm's 50-day moving average price is $512.81 and its 200-day moving average price is $363.26. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The company has a market cap of $788.37 billion, a price-to-earnings ratio of 124.15 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the previous year, the business posted $0.48 EPS. The business's quarterly revenue was up 50.1% on a year-over-year basis. Sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the sale, the executive vice president directly owned 324,527 shares in the company, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $536.33, for a total value of $3,217,980.00. Following the transaction, the executive vice president directly owned 1,233,687 shares in the company, valued at $661,663,348.71. This trade represents a 0.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 160,934 shares of company stock worth $74,664,256 over the last three months. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Norges Bank bought a new position in shares of Advanced Micro Devices during the fourth quarter worth about $4,929,312,000. Jennison Associates LLC increased its holdings in Advanced Micro Devices by 181.6% in the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer's stock valued at $2,336,552,000 after buying an additional 7,035,991 shares during the last quarter. Cardano Risk Management B.V. acquired a new stake in Advanced Micro Devices during the fourth quarter valued at approximately $1,000,783,000. BlackRock Inc. lifted its holdings in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock worth $87,311,650,000 after buying an additional 4,535,126 shares during the last quarter. Finally, Wellington Management Group LLP lifted its holdings in Advanced Micro Devices by 335.9% during the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock worth $784,330,000 after buying an additional 3,735,807 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

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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