Advanced Micro Devices (NASDAQ:AMD) Shares Up 3.9% - Should You Buy?

Key Points

• Advanced Micro Devices (AMD) shares increased by 3.9% during mid-day trading, reaching a last traded price of $161.94, with a trading volume significantly lower than average.
• Analysts have been optimistic about AMD, with several raising their price targets, including Mizuho's new target of $205.00 and Benchmark's target of $210.00, reflecting a consensus rating of "Moderate Buy".
• The company reported a quarterly earnings miss with $0.48 EPS, below the anticipated $0.54 EPS, but revenue was strong at $7.69 billion, exceeding estimates.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares were up 3.9% during mid-day trading on Wednesday . The stock traded as high as $164.53 and last traded at $161.94. Approximately 21,771,685 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 46,502,047 shares. The stock had previously closed at $155.82.

Analysts Set New Price Targets

Several equities analysts recently issued reports on AMD shares. Mizuho boosted their price objective on Advanced Micro Devices from $183.00 to $205.00 and gave the company an "outperform" rating in a research report on Thursday, August 14th. Bank of America increased their price objective on shares of Advanced Micro Devices from $175.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. DZ Bank raised shares of Advanced Micro Devices from a "sell" rating to a "hold" rating and set a $165.00 price objective for the company in a research report on Thursday, August 7th. Barclays increased their price objective on shares of Advanced Micro Devices from $130.00 to $200.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Finally, Benchmark increased their price objective on shares of Advanced Micro Devices from $170.00 to $210.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $180.88.

Advanced Micro Devices Trading Up 1.6%

The stock has a market cap of $256.94 billion, a price-to-earnings ratio of 90.99, a P/E/G ratio of 1.80 and a beta of 1.92. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49. The business has a 50-day simple moving average of $161.95 and a two-hundred day simple moving average of $126.19.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 company had revenue of $7.69 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same quarter in the prior year, the company earned $0.69 EPS. The company's revenue for the quarter was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Advanced Micro Devices announced that its Board of Directors has approved a share repurchase plan on Wednesday, May 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the semiconductor manufacturer to buy up to 3.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 10,000 shares of the stock in a transaction 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 completion of the sale, the executive vice president owned 125,505 shares in the company, 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, EVP Mark D. Papermaster sold 17,998 shares of the stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the completion of the sale, the executive vice president owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. This represents a 1.04% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 252,998 shares of company stock worth $41,415,580 over the last quarter. 0.06% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of large investors have recently added to or reduced their stakes in the business. SevenBridge Financial Group LLC raised its stake in Advanced Micro Devices by 9.8% in the 2nd quarter. SevenBridge Financial Group LLC now owns 6,214 shares of the semiconductor manufacturer's stock valued at $882,000 after acquiring an additional 557 shares during the period. American Trust bought a new stake in Advanced Micro Devices in the 2nd quarter valued at $233,000. FSC Wealth Advisors LLC raised its stake in Advanced Micro Devices by 18.8% in the 2nd quarter. FSC Wealth Advisors LLC now owns 949 shares of the semiconductor manufacturer's stock valued at $135,000 after acquiring an additional 150 shares during the period. Evolution Wealth Management Inc. bought a new stake in Advanced Micro Devices in the 2nd quarter valued at $34,000. Finally, Total Investment Management Inc. bought a new position in Advanced Micro Devices during the 2nd quarter worth $85,000. Institutional investors 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.

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