Advanced Micro Devices (NASDAQ:AMD) Shares Up 2.7% - Here's What Happened

Key Points

• AMD shares rose 2.7% in midday trading, touching a high of $562.99 after a broad chip rally and optimism around expanded FSR GPU support helped lift sentiment.
• Wall Street remains generally upbeat on AMD, with multiple analysts raising price targets and the stock holding an overall “Moderate Buy” consensus, though some investors worry about valuation after a strong year-to-date run.
• Recent fundamentals were solid: AMD beat quarterly earnings and revenue estimates, but insider selling and a reported reduction in holdings by David Tepper’s Appaloosa Management could temper near-term enthusiasm.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) was up 2.7% during mid-day trading on Monday . The company traded as high as $562.99 and last traded at $551.63. 25,219,908 shares changed hands during trading, a decline of 34% from the average session volume of 37,951,813 shares. The stock had previously closed at $537.37.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD is benefiting from a broader chip rally and expanded FSR GPU support, which has been cited as a catalyst for the stock’s move higher. AMD Stock Up on Expanded FSR GPU Support
• Positive Sentiment: Market commentary remains constructive, with one analyst saying AMD still holds a strong edge in chipmaking and can compete well in AI even as Nvidia leads the space. Gibbens: AMD Holds Its Own Against NVDA, SPCX & Other IPOs Benefit GS
• Positive Sentiment: AMD continues to attract upbeat long-term coverage, with brokerage sentiment described as “Moderate Buy,” reinforcing investor confidence in the AI and semiconductor growth story. Advanced Micro Devices, Inc. Receives Average Recommendation of Moderate Buy from Brokerages
• Neutral Sentiment: AMD’s stock has already more than doubled this year, so some investors may be debating whether the current valuation leaves room for upside. Should You Buy AMD Stock Now or Wait for a Dip?
• Negative Sentiment: David Tepper’s Appaloosa Management reportedly cut its AMD stake by about 32%, a sign that at least one prominent investor is becoming less bullish. David Tepper Trimmed Nvidia and AMD, but Doubled Down on This AI Stock
• Negative Sentiment: Reports of more than $60 million in insider selling since the start of June could weigh on sentiment, even if it does not necessarily change the company’s fundamentals. Sell alert? AMD insiders dumped $60 million worth of stock since June started

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Mizuho increased their price target on shares of Advanced Micro Devices from $515.00 to $615.00 and gave the company an "outperform" rating in a report on Monday, June 1st. JPMorgan Chase & Co. upped their target price on Advanced Micro Devices from $270.00 to $385.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Wedbush upped their target price on Advanced Micro Devices from $290.00 to $400.00 and gave the company an "outperform" rating in a research report on Monday, May 4th. Needham & Company LLC raised Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Finally, Wolfe Research set a $450.00 price target on Advanced Micro Devices and gave the stock an "outperform" rating in a report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Advanced Micro Devices currently has an average rating of "Moderate Buy" and an average target price of $430.68.

Advanced Micro Devices Stock Up 2.7%

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company has a market cap of $899.49 billion, a P/E ratio of 180.86, a PEG ratio of 1.58 and a beta of 2.50. The stock has a 50-day moving average of $417.16 and a 200 day moving average of $285.68.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.29 by $0.08. The firm had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business's revenue for the quarter was up 37.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.96 earnings per share. Research analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In other news, Director Nora Denzel sold 8,626 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares of the company's stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Mark D. Papermaster sold 6,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the completion of the sale, 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. 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 90 days, insiders have sold 378,032 shares of company stock worth $161,876,596. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Joseph Group Capital Management bought a new stake in Advanced Micro Devices during the 4th quarter worth $25,000. Sarver Vrooman Wealth Advisors bought a new position in Advanced Micro Devices in the fourth quarter valued at about $27,000. Cornerstone Financial Management LLC acquired a new stake in shares of Advanced Micro Devices during the fourth quarter valued at about $27,000. Basepoint Wealth LLC acquired a new stake in shares of Advanced Micro Devices during the fourth quarter valued at about $30,000. Finally, Graney & King LLC bought a new stake in shares of Advanced Micro Devices during the first quarter worth about $31,000. Institutional investors own 71.34% of the company's stock.

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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