Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 8% Following Analyst Upgrade

Key Points

• AMD shares rose 8% after Bank of America lifted its price target to $560 from $500 and kept a buy rating, helping fuel bullish sentiment around the stock.
• Other analysts remain constructive, with recent target increases and upgrades contributing to a consensus Moderate Buy rating and an average price target of $421.49.
• AMD’s latest earnings topped expectations, with EPS of $1.37 versus $1.29 expected and revenue up 37.8% year over year, underscoring continued strength in its business.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares rose 8% during trading on Thursday after Bank of America raised their price target on the stock from $500.00 to $560.00. Bank of America currently has a buy rating on the stock. Advanced Micro Devices traded as high as $490.46 and last traded at $488.45. Approximately 30,232,055 shares changed hands during trading, a decline of 21% from the average daily volume of 38,297,813 shares. The stock had previously closed at $452.40.

Other research analysts have also issued reports about the company. Barclays raised their price target on Advanced Micro Devices from $500.00 to $665.00 and gave the stock an "overweight" rating in a research report on Monday, June 1st. Piper Sandler restated an "overweight" rating on shares of Advanced Micro Devices in a research report on Wednesday, February 25th. Truist Financial set a $478.00 target price on Advanced Micro Devices in a report on Wednesday, May 6th. Erste Group Bank upgraded Advanced Micro Devices from a "hold" rating to a "buy" rating in a report on Thursday, April 2nd. Finally, Wolfe Research initiated coverage on Advanced Micro Devices in a report on Wednesday, May 6th. They issued a "peer perform" rating for the company. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $421.49.

Insider Buying and Selling at Advanced Micro Devices

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 Paul Darren Grasby sold 24,376 shares of the business's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president owned 105,222 shares in the company, valued at $46,759,604.58. This trade represents a 18.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 247,032 shares of company stock valued at $101,072,366. 0.50% of the stock is owned by insiders.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Bank of America raised its price target on AMD to $560 from $500 and reiterated a Buy, calling AMD a top CPU pick as agentic AI workloads are expected to drive much more demand for server chips. Article Title
• Positive Sentiment: Reports that leaked Zen 6 CPU specs point to 6.5 GHz speeds added to optimism that AMD can keep improving performance and gain share in high-end PCs and servers. Article Title
• Positive Sentiment: Several analysts reiterated bullish views, including Erste Group, which lifted earnings estimates for FY2026 and FY2027, reinforcing the idea that AMD’s AI/data-center growth is still accelerating. Article Title
• Positive Sentiment: Bank of America’s broader note on a roughly $170 billion agentic-AI server-CPU opportunity lifted sentiment across semiconductor stocks, including AMD, because it suggests a larger addressable market for the company’s EPYC and Instinct products. Article Title
• Neutral Sentiment: Some market commentary highlights that AMD’s valuation has risen much faster than the operating outlook, with one note calling the stock a hold above $475 and warning that expectations are already very high. Article Title
• Negative Sentiment: There are also reports of recent retail selling in AMD and other AI winners as investors raised cash for the SpaceX IPO, which may be creating short-term pressure on the shares. Article Title
• Negative Sentiment: In addition, several articles from the prior day pointed to a broader chip-sector pullback and concerns about valuation, circular-financing risk, and momentum-stock rotation, which help explain why AMD had been under pressure before today’s rebound. Article Title

Institutional Inflows and Outflows

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

Advanced Micro Devices Stock Up 8.0%

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 50 day moving average of $374.69 and a two-hundred day moving average of $270.50. The stock has a market capitalization of $796.47 billion, a PE ratio of 160.15, a P/E/G ratio of 1.40 and a beta of 2.50.

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

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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