Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 6.7% - Still a Buy?

Key Points

• AMD stock rose 6.7% to about $303.46 on heavy volume, driven by an AI‑chip rally, Stifel raising its price target to $320 and momentum from the new Ryzen 9 9950X3D2 product launch.
• Valuation and near‑term margin risks are a concern: AMD trades at a high PE (~114.5) and Zacks warns of an expected ~200‑basis‑point sequential gross‑margin decline in Q1, prompting caution from some analysts.
• Fundamentals show strength but targets lag the rally: AMD beat quarterly EPS ($1.53 vs. $1.32 est.) and revenue ($10.27B, +34.1% YoY), yet the average Wall Street price target (~$292.14) sits below the current intraday price.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price shot up 6.7% on Wednesday . The stock traded as high as $304.25 and last traded at $303.46. 48,756,191 shares traded hands during trading, an increase of 30% from the average session volume of 37,629,168 shares. The stock had previously closed at $284.49.

More Advanced Micro Devices News

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

• Positive Sentiment: Stifel raised its price target to $320, signaling stronger Wall Street conviction that AMD can capture accelerating AI-driven demand; this upgrade is a major catalyst drawing institutional buying. Read More.
• Positive Sentiment: Broad AI-chip rally lifted AMD alongside peers as investors re-embrace the AI infrastructure trade, supporting momentum and sector flows into AMD shares. Read More.
• Positive Sentiment: AMD launched the Ryzen 9 9950X3D2 Dual Edition, a high-end consumer CPU refresh that supports near-term revenue and PR momentum in the PC segment. Product launches help justify bullish estimates for CPU cycles. Read More.
• Positive Sentiment: Analysts and outlets are lifting targets and highlighting record highs (e.g., Blockonomi reporting analyst target increases), reinforcing the narrative of upside tied to AI compute demand. Read More.
• Neutral Sentiment: Institutional inflows and momentum are being cited as drivers of the move, which can amplify short-term gains but may be less durable if fundamentals wobble. Read More.
• Neutral Sentiment: Several bullish deep-dive pieces argue AMD has a structural edge in CPUs/AI, but these are thesis pieces that support longer-term case rather than immediate catalysts. Read More.
• Negative Sentiment: Zacks warns AMD expects roughly a 200 bps sequential gross-margin decline in Q1 as one-time gains fade, China revenue softens and seasonality hits — a clear near-term profit-pressure risk that could temper valuations. Read More.
• Negative Sentiment: Valuation concerns are resurfacing: coverage (e.g., Forbes) questions sustainability of the stretched multiple after the run, which raises the risk of profit-taking if growth stumbles. Read More.
• Negative Sentiment: Comparisons to Nvidia highlight competitive risk — some outlets argue Nvidia is the superior AI infrastructure play and paint AMD as a capable but longer-term challenger, which could cap enthusiasm among some investors. Read More.
• Negative Sentiment: Some advisory pieces caution against chasing the move (downgrades/“don’t chase” commentary), underscoring downside risk if catalysts don’t translate into sustained beats. Read More.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on AMD. Royal Bank Of Canada restated a "sector perform" rating and set a $230.00 price objective on shares of Advanced Micro Devices in a research report on Monday, March 16th. China Renaissance began coverage on shares of Advanced Micro Devices in a research report on Tuesday, January 13th. They set a "buy" rating and a $291.00 price objective for the company. Cantor Fitzgerald restated an "overweight" rating on shares of Advanced Micro Devices in a research report on Monday, February 2nd. Wall Street Zen upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Monday, January 26th. Finally, Roth Mkm restated a "buy" rating on shares of Advanced Micro Devices in a research report on Tuesday, February 24th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $292.14.

Advanced Micro Devices Stock Up 6.7%

The company has a quick ratio of 2.01, a current ratio of 2.85 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $494.74 billion, a PE ratio of 114.51, a price-to-earnings-growth ratio of 1.00 and a beta of 1.96. The business's 50 day simple moving average is $215.21 and its 200 day simple moving average is $222.95.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.21. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The company had revenue of $10.27 billion during the quarter, compared to analyst estimates of $9.65 billion. During the same period in the prior year, the firm earned $1.09 earnings per share. The business's quarterly revenue was up 34.1% on a year-over-year basis. As a group, analysts forecast that Advanced Micro Devices, Inc. will post 5.75 EPS for the current year.

Insider Activity

In other news, EVP Mark D. Papermaster sold 27,109 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $275.00, for a total value of $7,454,975.00. Following the completion of the sale, the executive vice president directly owned 1,267,357 shares of the company's stock, valued at $348,523,175. This represents a 2.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 85,000 shares of the stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $198.77, for a total transaction of $16,895,450.00. Following the completion of the sale, the chief executive officer directly owned 3,146,006 shares of the company's stock, valued at $625,331,612.62. This trade represents a 2.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 273,352 shares of company stock valued at $59,173,070 over the last ninety days. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

A number of hedge funds have recently made changes to their positions in AMD. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $25,000. ORG Wealth Partners LLC lifted its position in shares of Advanced Micro Devices by 39.7% in the third quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 46 shares in the last quarter. Koesten Hirschmann & Crabtree INC. lifted its position in shares of Advanced Micro Devices by 61.0% in the third quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 61 shares in the last quarter. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

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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