Advanced Micro Devices (NASDAQ:AMD) Shares Up 7.7% - Still a Buy?

Key Points

• AMD shares jumped 7.7% in Tuesday trading, reaching an intraday high of $584.73 as investors reacted to a strong backdrop for chip stocks.
• Analyst sentiment remains broadly positive, with Wells Fargo and Cantor Fitzgerald raising targets on stronger server CPU and AI demand, while the stock now carries a consensus Moderate Buy rating.
• Recent earnings and fundamentals were solid: AMD beat quarterly EPS and revenue estimates, and the company continues to be viewed as a key beneficiary of AI infrastructure spending, though some commentary warns the stock may be technically stretched after its big run.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price rose 7.7% during mid-day trading on Tuesday . The stock traded as high as $584.73 and last traded at $580.91. Approximately 34,261,521 shares changed hands during trading, a decline of 9% from the average session volume of 37,716,441 shares. The stock had previously closed at $539.49.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Wells Fargo raised its price target on AMD and kept an Overweight rating, citing stronger server CPU trends and improving visibility into AI-driven demand.
• Positive Sentiment: Cantor Fitzgerald lifted its AMD target to a Street-high $700, adding to the bullish analyst momentum around the stock.
• Positive Sentiment: AMD is benefiting from a broader semiconductor rally, with chip stocks and tech names advancing on a risk-on tone in the market.
• Positive Sentiment: Options activity suggests traders are positioning for further upside, with heavy call buying in AMD ahead of its early-August earnings report.
• Neutral Sentiment: Recent articles continue to frame AMD as a major AI infrastructure beneficiary, including discussion of its CPU role in next-generation data center buildouts.
• Negative Sentiment: Some commentary notes that AMD has run hard over the past year and may be getting extended technically, which could limit upside in the near term.

Analysts Set New Price Targets

A number of research firms recently issued reports on AMD. Oppenheimer lowered Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a report on Wednesday, May 6th. Zacks Research cut Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. Bank of America lifted their target price on Advanced Micro Devices from $500.00 to $560.00 and gave the company a "buy" rating in a research note on Thursday, June 11th. HSBC lowered Advanced Micro Devices from a "buy" rating to a "hold" rating and boosted their target price for the company from $335.00 to $340.00 in a report on Monday, May 4th. Finally, Needham & Company LLC upgraded Advanced Micro Devices to a "buy" rating in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices presently has an average rating of "Moderate Buy" and an average price target of $448.78.

Advanced Micro Devices Stock Up 7.7%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The firm has a fifty day moving average price of $450.43 and a 200 day moving average price of $298.88. The firm has a market capitalization of $947.23 billion, a price-to-earnings ratio of 190.46, a PEG ratio of 1.54 and a beta of 2.50.

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 for the quarter, topping 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 firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter in the prior year, the company posted $0.96 earnings per share. Advanced Micro Devices's quarterly revenue was up 37.8% on a year-over-year basis. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 31,320 shares of the company's stock in a transaction dated 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 transaction, the executive vice president directly owned 1,236,037 shares in the company, valued at approximately $432,612,950. This represents a 2.47% decrease in their ownership of the stock. 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 Paul Darren Grasby sold 24,376 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares of the company's stock, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 378,032 shares of company stock worth $161,876,596. Insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors have recently modified their holdings of AMD. Joseph Group Capital Management acquired a new stake in Advanced Micro Devices in the fourth quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at $27,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth $27,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices in the 1st quarter worth about $31,000. Hedge funds and other 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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