Advanced Micro Devices (NASDAQ:AMD) Shares Up 4% - Here's Why

Key Points

• AMD shares rose 4% on Friday, trading as high as $481.41 after closing previously at $449.59, reflecting strong recent momentum in the stock.
• Investor sentiment was boosted by several AI and chip-growth catalysts, including CEO Lisa Su’s comments on strong CPU demand, the ramp of “Venice” EPYC CPUs on TSMC’s 2nm process, and more than $10 billion in Taiwan ecosystem investments.
• Wall Street has turned increasingly bullish on AMD, with multiple firms raising price targets; recent quarterly results also beat estimates, with revenue up 37.8% year over year and EPS topping expectations.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 4% on Friday . The company traded as high as $481.41 and last traded at $467.51. 34,566,669 shares traded hands during trading, a decline of 12% from the average session volume of 39,169,438 shares. The stock had previously closed at $449.59.

Key Advanced Micro Devices News

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

• Positive Sentiment: CEO Lisa Su said AMD expects strong CPU growth over the next five years, helping fuel optimism about long-term demand for its data center chips. AMD Stock Rallies as Lisa Su Expects CPU Growth of ‘35% Each Year’ for the Next 5 Years
• Positive Sentiment: AMD began ramping production of its “Venice” EPYC CPUs on TSMC’s 2nm node, a major manufacturing milestone that supports its AI and server growth story. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD announced more than $10 billion of investment across Taiwan’s AI ecosystem to expand advanced packaging capacity and support future AI deployments, including the Helios rack-scale platform. AMD Announces More Than $10 Billion in Taiwan Ecosystem Investments to Accelerate AI Infrastructure
• Positive Sentiment: Nvidia’s strong AI commentary and broader chip-sector momentum are boosting confidence that AMD will benefit from continued AI infrastructure spending. AMD Stock (AMD) Hits All-Time High as Nvidia Earnings Boost Confidence in the AI Trade
• Neutral Sentiment: Some commentary suggests AMD’s sharp rally has already priced in a lot of good news, so investors may continue debating valuation after the recent run-up. After a Q1 Blowout and a Soaring Share Price, Is AMD Stock Still a Buy?

Analysts Set New Price Targets

A number of research firms recently weighed in on AMD. Mizuho lifted their target price on Advanced Micro Devices from $415.00 to $515.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Seaport Research Partners raised Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 target price on the stock in a research report on Wednesday, May 6th. Evercore reissued an "outperform" rating and set a $579.00 target price on shares of Advanced Micro Devices in a research report on Tuesday. Bank of America lifted their price objective on Advanced Micro Devices from $450.00 to $500.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Finally, Roth Mkm reaffirmed a "buy" rating and set a $500.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and a consensus price target of $410.00.

Advanced Micro Devices Stock Up 4.0%

The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The business has a fifty day simple moving average of $292.17 and a two-hundred day simple moving average of $245.31. The company has a market capitalization of $762.32 billion, a price-to-earnings ratio of 153.28, a P/E/G ratio of 1.33 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $9.90 billion. During the same period in the previous year, the business earned $0.96 earnings per share. The company's quarterly revenue was up 37.8% on a year-over-year basis. Equities analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Activity

In other news, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president owned 105,222 shares in the company, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer owned 3,021,899 shares of the company's stock, valued at $1,346,286,223.49. This trade represents a 3.97% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 309,598 shares of company stock worth $105,644,316. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of AMD. Joseph Group Capital Management bought a new position in Advanced Micro Devices in the 4th quarter worth approximately $25,000. Koesten Hirschmann & Crabtree INC. raised its position in Advanced Micro Devices by 61.0% in the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors bought a new position in Advanced Micro Devices in the 4th quarter worth approximately $27,000. Cornerstone Financial Management LLC bought a new position in Advanced Micro Devices in the 4th quarter worth approximately $27,000. Finally, Basepoint Wealth LLC bought a new position in Advanced Micro Devices in the 4th quarter worth approximately $30,000. 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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