Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 5.9% - Should You Buy?

Key Points

• AMD shares climbed 5.9% in mid-day trading, hitting an intraday high of $436.69 after closing at $414.05 the prior session. Trading volume was far below average, with about 5.3 million shares changing hands versus a 38.98 million average.
• Analysts are turning more bullish on AMD, with multiple firms raising price targets amid optimism around the company’s long-term server CPU and AI opportunities. Recent targets ranged as high as $515, while the overall consensus remains a “Moderate Buy.”
• AMD’s latest earnings beat expectations, with quarterly EPS of $1.37 and revenue of $10.25 billion, both topping analyst estimates. Revenue rose 37.8% year over year, though the stock still faces debate over competition from Nvidia and whether much of the rally is already priced in.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price rose 5.9% during mid-day trading on Wednesday . The stock traded as high as $436.69 and last traded at $438.5450. Approximately 5,344,249 shares changed hands during trading, a decline of 86% from the average daily volume of 38,978,820 shares. The stock had previously closed at $414.05.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Analysts are becoming more bullish on AMD’s long-term server CPU opportunity, with higher market forecasts and fresh price-target increases signaling additional upside potential. Evercore ISI Raises Price Target on Advanced Micro Devices (AMD) Amid AI Market Shift
• Positive Sentiment: BofA’s updated outlook for the server CPU market suggests a much larger AI-driven opportunity, which could benefit AMD’s data center growth story. BofA names top chip stocks as server CPU TAM seen reaching $125bn by 2030
• Neutral Sentiment: Several opinion pieces argue AMD remains a strong long-term AI stock, but some also frame the rally as already very extended, which may temper enthusiasm near-term. Should Investors Buy AMD Stock Instead of Nvidia?
• Neutral Sentiment: AMD’s CEO meeting with Chinese officials and ongoing discussion about export rules may affect sentiment, but the direct financial impact remains unclear for now. What's Going On With AMD Stock Tuesday?
• Negative Sentiment: Some commentary warns that AMD is facing intense competition from Nvidia and may be vulnerable if market expectations get too crowded or if growth slows. AMD Has An Nvidia Problem

Analysts Set New Price Targets

AMD has been the subject of several analyst reports. TD Cowen upped their price objective on Advanced Micro Devices from $290.00 to $500.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Truist Financial set a $478.00 price objective on Advanced Micro Devices in a research report on Wednesday, May 6th. HSBC cut Advanced Micro Devices from a "buy" rating to a "hold" rating and upped their price objective for the stock from $335.00 to $340.00 in a research report on Monday, May 4th. Jefferies Financial Group downgraded shares of Advanced Micro Devices from a "buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Finally, Mizuho increased their target price on shares of Advanced Micro Devices from $415.00 to $515.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $410.00.

Advanced Micro Devices Stock Performance

The company has a market cap of $724.95 billion, a price-to-earnings ratio of 145.49, a price-to-earnings-growth ratio of 1.25 and a beta of 2.40. The firm has a 50-day simple moving average of $282.35 and a 200 day simple moving average of $242.59. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping the consensus estimate of $1.29 by $0.08. The company 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%.The firm's revenue was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.96 earnings per share. On average, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Lisa T. Su sold 125,000 shares of the business's stock in a transaction dated 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 transaction, the chief executive officer owned 3,021,899 shares in the company, valued at $1,346,286,223.49. The trade was a 3.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 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 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 completion of the transaction, the executive vice president owned 1,236,037 shares in the company, valued at $432,612,950. This trade 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. Over the last three months, insiders sold 309,598 shares of company stock valued at $105,644,316. Insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors have recently added to or reduced their stakes in AMD. Brighton Jones LLC lifted its holdings in shares of Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after purchasing an additional 29,438 shares during the period. Revolve Wealth Partners LLC lifted its holdings in shares of Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock worth $1,001,000 after purchasing an additional 234 shares during the period. Sivia Capital Partners LLC lifted its holdings in shares of Advanced Micro Devices by 125.1% during the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock worth $758,000 after purchasing an additional 2,970 shares during the period. United Bank lifted its holdings in shares of Advanced Micro Devices by 22.0% during the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock worth $1,881,000 after purchasing an additional 2,392 shares during the period. Finally, Schnieders Capital Management LLC. lifted its holdings in shares of Advanced Micro Devices by 361.0% during the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock worth $1,310,000 after purchasing an additional 7,228 shares during the period. Institutional investors and hedge funds 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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