Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 13% on Analyst Upgrade

Key Points

• AMD shares surged 13% to $485.39 after Susquehanna raised its price target from $450 to $500 and maintained a positive rating.
• Analyst sentiment remains broadly favorable, with a consensus “Moderate Buy” rating and average price target of $529.46; several firms have issued targets ranging from $600 to $725.
• AMD’s latest quarter beat expectations, with revenue up 37.8% year over year to $10.25 billion, though its high valuation and recent insider selling remain important risks for investors.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 13% during mid-day trading on Thursday after Susquehanna raised their price target on the stock from $450.00 to $500.00. Susquehanna currently has a positive rating on the stock. Advanced Micro Devices traded as high as $498.20 and last traded at $485.39. 36,234,132 shares changed hands during mid-day trading, a decline of 0% from the average daily volume of 36,296,258 shares. The stock had previously closed at $429.56.

A number of other research firms have also weighed in on AMD. Raymond James Financial began coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They set a "market perform" rating on the stock. Melius Research set a $660.00 price target on Advanced Micro Devices in a report on Friday, July 24th. Wells Fargo & Company boosted their price target on shares of Advanced Micro Devices from $505.00 to $615.00 and gave the company an "overweight" rating in a research report on Tuesday, June 30th. Loop Capital raised shares of Advanced Micro Devices to a "strong-buy" rating in a report on Tuesday, June 16th. Finally, KeyCorp raised their price objective on shares of Advanced Micro Devices from $530.00 to $725.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $529.46.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 6,000 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the sale, the executive vice president owned 1,233,687 shares of the company's stock, valued at approximately $661,663,348.71. This represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the completion of the transaction, the executive vice president directly owned 324,527 shares of the company's stock, valued at approximately $140,000,947.80. The trade was a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 310,310 shares of company stock worth $141,185,456 over the last ninety days. Company insiders own 0.50% of the company's stock.

More Advanced Micro Devices News

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

• Positive Sentiment: Analyst upgrades strengthened the bullish case. Susquehanna raised its AMD price target from $450 to $500 and assigned a “Positive” rating ahead of the company’s Aug. 4 earnings report. Wedbush separately lifted its target to $600, citing expected acceleration in AMD’s data-center business from Microsoft and Anthropic partnerships. Susquehanna raises AMD price target
• Positive Sentiment: AI infrastructure demand remains the key catalyst. AMD’s agreement with Core Scientific provides more than 500 megawatts of U.S. data-center capacity beginning in 2027, with an option to expand to 2.5 gigawatts. Bernstein estimates the partnership could generate roughly $14 billion in revenue over 15 years, while Wedbush views it as evidence that AMD is addressing the infrastructure bottleneck limiting AI-chip deployments. Bernstein estimates AMD Core Scientific deal value
• Positive Sentiment: Broader confidence in AI spending lifted AMD. Microsoft’s stronger-than-expected cloud results helped ease concerns about a slowdown in hyperscaler investment. An Anthropic developer’s comments about the need for more powerful CPUs also highlighted potential demand for AMD’s server processors. AMD and Intel rebound on AI infrastructure optimism
• Neutral Sentiment: Earnings are the next major test. Investors are focused on AMD’s second-quarter results and outlook, with expectations for continued revenue and earnings growth. The company’s prior quarter exceeded consensus estimates, but its elevated valuation leaves little room for disappointing guidance.
• Negative Sentiment: Valuation and competitive risks remain. Recent reports cited concerns about AMD’s high earnings multiple, increased competition from China and custom AI-chip developers, and reports of a new 4 GB GPU. In addition, recent institutional filings showed some fund reductions, while AMD insiders have reported selling shares without open-market purchases. AMD valuation and China technology risks

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in Advanced Micro Devices by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer's stock valued at $33,949,256,000 after purchasing an additional 2,525,109 shares during the period. State Street Corp raised its position in Advanced Micro Devices by 1.5% in the 4th quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer's stock valued at $16,044,712,000 after purchasing an additional 1,094,835 shares in the last quarter. Geode Capital Management LLC raised its position in Advanced Micro Devices by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer's stock valued at $8,015,897,000 after purchasing an additional 287,525 shares in the last quarter. Norges Bank purchased a new position in shares of Advanced Micro Devices in the 4th quarter valued at about $4,929,312,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of Advanced Micro Devices by 0.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer's stock valued at $4,352,864,000 after buying an additional 55,969 shares during the period. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Stock Performance

The firm has a market capitalization of $791.48 billion, a price-to-earnings ratio of 159.14 and a beta of 2.47. 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 stock has a 50-day moving average price of $514.54 and a 200 day moving average price of $346.81.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results 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 net margin of 13.37% and a return on equity of 9.55%. The firm 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 firm earned $0.96 earnings per share. The business's quarterly revenue was up 37.8% compared to the same quarter last year. On average, analysts forecast that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

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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