Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.5% - Still a Buy?

Key Points

• AMD shares rose 2.5% on Thursday, with the stock trading as high as $550.88 after closing at $519.74 the prior day. Trading volume was below average, suggesting the move came on lighter-than-normal activity.
• Investor sentiment was boosted by bullish analyst commentary, including UBS reportedly lifting its price target to $670 and Gartner calling AMD “the company to beat” in enterprise AI server CPUs. These notes point to stronger expectations for AMD’s data center and AI businesses.
• Wall Street remains constructive overall, but valuation is a concern: AMD trades at a rich multiple and some commentary warns that upside may be limited if growth expectations ease. Recent earnings were also strong, with Q1 revenue and EPS both topping estimates and revenue up 37.8% year over year.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) were up 2.5% on Thursday . The stock traded as high as $550.88 and last traded at $532.57. 26,768,615 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 37,708,262 shares. The stock had previously closed at $519.74.

More Advanced Micro Devices News

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

• Positive Sentiment: UBS reportedly raised its AMD price target to $670, reinforcing the view that the company’s data center business could drive substantial upside as server CPU demand rises. Why Is AMD Stock Gaining Thursday?
• Positive Sentiment: Gartner called AMD “the company to beat” for enterprise AI server CPUs, adding to confidence that AMD is gaining share in higher-value AI and data center workloads. Gartner Says AMD Is the ‘Company to Beat for Enterprise AI Server CPUs’
• Positive Sentiment: Analysts continue to frame AMD as a major AI beneficiary, with reports highlighting strong HPC gains, surging data center revenue, and potential long-term growth toward a trillion-dollar market value. AMD's Supercomputing Gains Fuel AI Data Center Growth: What's Ahead?
• Neutral Sentiment: Several commentary pieces compare AMD favorably with Nvidia on growth potential, but also note AMD is trading at a much richer valuation than peers, which may limit near-term upside if expectations cool. AMD Is Trading at 97 Times Forward Earnings While Nvidia Trades at 21 Times
• Negative Sentiment: One article argued that Micron’s blowout results did not lift AMD or the broader chip group, underscoring that the rally is becoming more selective and not every AI-linked name is participating. Why Micron earnings aren't driving Intel, AMD shares higher?

Wall Street Analysts Forecast Growth

Several research firms have commented on AMD. Oppenheimer cut shares of Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a research note on Wednesday, May 6th. Cantor Fitzgerald upped their price target on shares of Advanced Micro Devices to $500.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. raised their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Mizuho boosted their target price on Advanced Micro Devices from $515.00 to $615.00 and gave the stock an "outperform" rating in a report on Monday, June 1st. Finally, TD Cowen increased their price target on Advanced Micro Devices from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $440.41.

Advanced Micro Devices Price Performance

The firm has a market capitalization of $868.41 billion, a P/E ratio of 174.61, a P/E/G ratio of 1.53 and a beta of 2.50. The business's fifty day moving average is $434.39 and its 200 day moving average is $292.31. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The firm's quarterly revenue was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.96 earnings per share. As a group, analysts forecast that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the transaction, the chief executive officer directly owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the business's stock in a transaction that occurred on 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 in the company, valued at $661,663,348.71. This represents a 0.48% 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. In the last ninety days, insiders sold 378,032 shares of company stock valued at $161,876,596. Corporate insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AMD. Jefferies Financial Group Inc. raised its stake in shares of Advanced Micro Devices by 6,228.8% in the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer's stock valued at $65,966,000 after buying an additional 303,154 shares in the last quarter. Williamson Legacy Group LLC bought a new stake in Advanced Micro Devices in the fourth quarter valued at about $1,118,000. Thoroughbred Financial Services LLC raised its position in Advanced Micro Devices by 8.8% in the fourth quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer's stock worth $7,030,000 after purchasing an additional 2,654 shares in the last quarter. Valtinson Bruner Financial Planning LLC acquired a new position in Advanced Micro Devices in the fourth quarter worth about $1,523,000. Finally, Weaver Consulting Group bought a new position in Advanced Micro Devices during the fourth quarter worth about $246,000. 71.34% of the stock is owned by institutional investors and hedge funds.

About Advanced Micro Devices

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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