Advanced Micro Devices (NASDAQ:AMD) Shares Up 7% - Should You Buy?

Key Points

• AMD shares rose 7% on Monday, fueled by a broader rally in chip stocks as investors rotated into AI and semiconductor names amid improved risk sentiment.
• Analysts turned more upbeat, with Citi upgrading AMD to Buy and lifting its price target on stronger GPU upside and improving AI demand. Other firms also cited constructive management commentary and potential upside to 2026–2027 estimates.
• Fundamentals remain strong but valuation is stretched: AMD beat its latest earnings and revenue estimates, while the stock now trades at a high multiple with some commentary warning that its valuation may be getting extended even as AI growth expectations stay intact.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares shot up 7% on Monday . The stock traded as high as $558.37 and last traded at $547.26. 32,239,971 shares traded hands during trading, a decline of 16% from the average session volume of 38,182,531 shares. The stock had previously closed at $511.57.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD is benefiting from a broad rally in chip stocks as investors rotate into AI and semiconductor names on improving risk sentiment. Why AI Chip Stocks NVDA, AMD, INTC, and AVGO Are Rising Today — June 15, 2026
• Positive Sentiment: Citi upgraded AMD to Buy and raised its price target, citing stronger upside in the GPU business and improving AI demand. Citi Calls AMD a Rising Force in the GPU Market, Upgrades Shares to Buy
• Positive Sentiment: Wolfe Research said AMD’s management tone was constructive and sees substantial upside to consensus estimates for 2026 and 2027, driven by CPU strength and potential new MI450 customers. AMD's AI Chip Roadmap Keeps Bulls Interested Despite Valuation Concerns
• Positive Sentiment: AMD’s market value has climbed above major financial names as enthusiasm for its AI chip roadmap and memory technology continues to build. AMD flirts with a $900 billion valuation after beefing up its memory technology
• Neutral Sentiment: Some commentary notes that AMD’s valuation is now stretched, even as the company’s AI and GPU growth narrative remains intact. AMD stock surge brings $1 trillion status within reach, but key risks remain

Analyst Ratings Changes

Several brokerages have recently weighed in on AMD. Needham & Company LLC upgraded shares of Advanced Micro Devices to a "buy" rating in a research note on Wednesday, May 6th. Jefferies Financial Group downgraded shares of Advanced Micro Devices from a "buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Benchmark raised their price objective on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Evercore restated an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. Finally, Wells Fargo & Company raised their price objective on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $428.65.

Advanced Micro Devices Stock Performance

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 company has a market capitalization of $892.36 billion, a PE ratio of 179.43, a PEG ratio of 1.50 and a beta of 2.50. The stock's fifty day simple moving average is $386.41 and its 200-day simple moving average is $274.60.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. 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 company posted $0.96 earnings per share. The firm's quarterly revenue was up 37.8% compared to the same quarter last year. On average, research analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Mark D. Papermaster sold 31,320 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the transaction, the executive vice president directly owned 1,236,037 shares of the company's stock, valued at $432,612,950. This trade represents a 2.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company's stock, valued at $1,334,572,400.31. This represents a 4.14% 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 a total of 372,032 shares of company stock valued at $158,658,616 in the last 90 days. 0.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Lombard Odier Asset Management Europe Ltd raised its position in shares of Advanced Micro Devices by 31.4% during the 1st quarter. Lombard Odier Asset Management Europe Ltd now owns 90,469 shares of the semiconductor manufacturer's stock worth $18,404,000 after purchasing an additional 21,615 shares during the last quarter. Militia Capital Management LLC acquired a new position in shares of Advanced Micro Devices during the 1st quarter worth approximately $2,848,000. E Wealth Partners LLC raised its position in shares of Advanced Micro Devices by 1.6% during the 1st quarter. E Wealth Partners LLC now owns 2,591 shares of the semiconductor manufacturer's stock worth $527,000 after purchasing an additional 40 shares during the last quarter. FAS Wealth Partners Inc. raised its position in shares of Advanced Micro Devices by 10.2% during the 1st quarter. FAS Wealth Partners Inc. now owns 1,982 shares of the semiconductor manufacturer's stock worth $403,000 after purchasing an additional 184 shares during the last quarter. Finally, Rathbones Group PLC raised its position in shares of Advanced Micro Devices by 3.1% during the 1st quarter. Rathbones Group PLC now owns 20,955 shares of the semiconductor manufacturer's stock worth $4,263,000 after purchasing an additional 634 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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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