Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 11.4% - Here's Why

Key Points

• AMD shares jumped 11.4% on Friday, with trading volume well above average as the stock hit an intraday high of $456.29.
• The rally followed a strong earnings report: AMD beat quarterly estimates on both revenue and EPS, and management’s upbeat outlook for AI demand helped drive sentiment higher.
• Wall Street has turned more positive, with several analysts raising price targets and upgrading the stock as investors increasingly view AMD as a beneficiary of growing AI and server CPU demand.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price rose 11.4% on Friday . The company traded as high as $456.29 and last traded at $455.19. Approximately 57,010,988 shares traded hands during trading, an increase of 43% from the average daily volume of 39,786,969 shares. The stock had previously closed at $408.46.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD’s latest quarterly results beat expectations, with revenue and earnings topping estimates and data center growth driving the upside. Management’s strong outlook for AI demand helped fuel the rally. AMD earnings report and related coverage
• Positive Sentiment: Multiple analysts raised price targets after earnings, including fresh Street-high calls, signaling that Wall Street sees more upside as AMD’s AI and server CPU business accelerates. Article about AMD rally and analyst optimism
• Positive Sentiment: Investor sentiment is improving as articles highlight AMD as more than just a GPU play, with demand for CPUs rising in AI agents and enterprise infrastructure. CNBC article on AI chip demand shifting toward AMD
• Neutral Sentiment: Cathie Wood and Ark Invest continued trimming AMD shares, which may reflect profit-taking after the stock’s huge run rather than a change in the company’s fundamentals. Ark Invest selling AMD
• Neutral Sentiment: AMD is benefiting from a broader AI hardware rally, including new partnerships and demand across the chip ecosystem, but some of the move may also be driven by momentum and sector rotation. Sector rally coverage

Wall Street Analysts Forecast Growth

Several equities analysts have commented on AMD shares. Wall Street Zen raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Monday, January 26th. Northland Securities reissued a "market perform" rating and issued a $260.00 price target on shares of Advanced Micro Devices in a research report on Monday, April 27th. Needham & Company LLC raised shares of Advanced Micro Devices to a "buy" rating in a research report on Wednesday. Erste Group Bank raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Thursday, April 2nd. Finally, BTIG Research raised shares of Advanced Micro Devices to a "buy" rating in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $388.84.

Advanced Micro Devices Stock Up 11.4%

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 2.01. The firm's 50-day simple moving average is $243.98 and its two-hundred day simple moving average is $231.76. The company has a market capitalization of $742.11 billion, a price-to-earnings ratio of 149.24, a price-to-earnings-growth ratio of 1.48 and a beta of 2.40.

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 for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $9.90 billion. During the same period in the prior year, the business posted $0.96 earnings per share. The firm's revenue for the quarter was up 37.8% compared to the same quarter last year. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 5.97 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

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 value of $10,962,000.00. Following the sale, the executive vice president owned 1,236,037 shares of the company's stock, valued at $432,612,950. This represents a 2.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 7,500 shares of the company's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $204.87, for a total transaction of $1,536,525.00. Following the completion of the sale, the executive vice president directly owned 129,598 shares in the company, valued at $26,550,742.26. This trade represents a 5.47% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 304,672 shares of company stock valued at $70,135,070. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of large investors have recently added to or reduced their stakes in AMD. PNC Financial Services Group Inc. boosted its stake in Advanced Micro Devices by 5.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 398,119 shares of the semiconductor manufacturer's stock valued at $80,989,000 after acquiring an additional 21,176 shares during the last quarter. Oslo Pensjonsforsikring AS bought a new position in Advanced Micro Devices during the 1st quarter worth approximately $1,368,000. Burling Wealth Partners LLC grew its position in shares of Advanced Micro Devices by 1.5% in the 1st quarter. Burling Wealth Partners LLC now owns 4,883 shares of the semiconductor manufacturer's stock worth $993,000 after acquiring an additional 74 shares in the last quarter. Andra AP fonden increased its holdings in shares of Advanced Micro Devices by 230.4% in the 1st quarter. Andra AP fonden now owns 316,188 shares of the semiconductor manufacturer's stock valued at $64,322,000 after acquiring an additional 220,492 shares during the last quarter. Finally, Wilkerson Advisory Group LLC raised its position in shares of Advanced Micro Devices by 72.3% during the 1st quarter. Wilkerson Advisory Group LLC now owns 267 shares of the semiconductor manufacturer's stock valued at $54,000 after acquiring an additional 112 shares in the last quarter. 71.34% of the stock is 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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