Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 5.1% - Still a Buy?

Key Points

• AMD shares rose 5.1% on Monday, trading as high as $494.97 and last changing hands at $490.33, though volume was below average.
• The company is benefiting from bullish AI and semiconductor sentiment, including a major £2 billion UK investment aimed at AI research, supercomputing, and workforce development.
• Wall Street remains constructive after AMD’s latest results beat expectations, with analysts citing strong earnings and revenue growth and setting price targets as high as $600.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price traded up 5.1% on Monday . The company traded as high as $494.97 and last traded at $490.33. 24,897,965 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 38,472,457 shares. The stock had previously closed at $466.38.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD announced a major £2 billion UK investment to accelerate AI research, supercomputing, and workforce development, with partnerships that could strengthen its role in sovereign AI infrastructure. AMD Commits up to £2 Billion to Accelerate AI Innovation and Research in the United Kingdom
• Positive Sentiment: Wall Street commentary remains bullish on AMD’s AI momentum, with multiple reports pointing to strong earnings, rising institutional support, and analyst targets up to $600. Advanced Micro Devices (AMD) Stock Soars to $466 as Analysts Set $600 Target
• Positive Sentiment: AMD is benefiting from a broader rebound in chip stocks as investors reassess the recent AI selloff and rotate back into semiconductors. Why Is AMD Stock Gaining Monday?

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the company. JPMorgan Chase & Co. increased their price target on Advanced Micro Devices from $270.00 to $385.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Seaport Research Partners raised Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price target for the company in a research note on Wednesday, May 6th. Citigroup increased their price objective on Advanced Micro Devices from $358.00 to $460.00 and gave the company a "neutral" rating in a report on Monday, May 18th. DA Davidson increased their price objective on Advanced Micro Devices from $375.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, Bank of America raised their target price on Advanced Micro Devices from $450.00 to $500.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $419.86.

Advanced Micro Devices Trading Up 5.1%

The company has a 50 day moving average of $358.36 and a 200 day moving average of $265.16. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The firm has a market cap of $799.53 billion, a price-to-earnings ratio of 160.76, a price-to-earnings-growth ratio of 1.37 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.Advanced Micro Devices's quarterly revenue was up 37.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.96 EPS. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Lisa T. Su sold 125,000 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total value of $55,688,750.00. Following the sale, the chief executive officer owned 3,021,899 shares of the company's stock, valued at $1,346,286,223.49. The trade was a 3.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of the business's stock in a transaction on 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 completion of the sale, 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 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 have sold 339,532 shares of company stock worth $119,504,341 over the last quarter. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors have recently bought and sold shares of the business. Joseph Group Capital Management bought a new position in Advanced Micro Devices in the 4th quarter valued at $25,000. Sarver Vrooman Wealth Advisors bought a new position in Advanced Micro Devices in the 4th quarter valued at $27,000. Cornerstone Financial Management LLC bought a new position in Advanced Micro Devices in the 4th quarter valued at $27,000. Basepoint Wealth LLC bought a new position in Advanced Micro Devices in the 4th quarter valued at $30,000. Finally, Graney & King LLC bought a new position in Advanced Micro Devices in the 1st quarter valued at $31,000. Institutional investors own 71.34% of the company's stock.

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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