Advanced Micro Devices (NASDAQ:AMD) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded AMD from a “strong-buy” to a “hold,” even as the broader analyst community remains more positive overall with a consensus rating of “Moderate Buy.”
• AMD reported strong quarterly results, posting EPS of $1.37 versus estimates of $1.29 and revenue of $10.25 billion versus expectations of $9.90 billion, with revenue up 37.8% year over year.
• Investor sentiment remains mixed: several analysts recently lifted price targets as high as $665 on AI-related demand, but the stock has also seen insider selling and some caution after a sharp rally.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other equities research analysts have also issued reports on the company. Benchmark raised their price objective on Advanced Micro Devices from $325.00 to $485.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Rosenblatt Securities raised their price target on Advanced Micro Devices from $300.00 to $490.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Truist Financial set a $478.00 price target on Advanced Micro Devices in a research note on Wednesday, May 6th. Wolfe Research assumed coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They set a "peer perform" rating for the company. Finally, Wedbush raised their price target on Advanced Micro Devices from $290.00 to $400.00 and gave the stock an "outperform" rating in a research note on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $419.86.

Advanced Micro Devices Price Performance

NASDAQ:AMD opened at $523.20 on Wednesday. The firm has a market capitalization of $853.13 billion, a price-to-earnings ratio of 171.54, a PEG ratio of 1.60 and a beta of 2.50. Advanced Micro Devices has a 1 year low of $114.71 and a 1 year high of $546.44. The business has a 50 day simple moving average of $353.43 and a 200-day simple moving average of $263.57. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.08. The business had revenue of $10.25 billion during 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 company's revenue for the quarter was up 37.8% on a year-over-year basis. During the same period last year, the company earned $0.96 EPS. Equities analysts forecast that Advanced Micro Devices will post 6.2 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the transaction, the executive vice president directly owned 324,527 shares of the company's stock, valued at approximately $140,000,947.80. The trade was a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the transaction, the chief executive officer directly owned 3,021,899 shares of the company's stock, valued at approximately $1,346,286,223.49. The trade was a 3.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 339,532 shares of company stock worth $119,504,341 over the last quarter. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in AMD. Impax Asset Management Group plc grew its stake in Advanced Micro Devices by 326.5% during the 3rd quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer's stock worth $8,424,000 after buying an additional 39,861 shares during the last quarter. Jefferies Financial Group Inc. grew its stake in Advanced Micro Devices by 6,228.8% during the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer's stock worth $65,966,000 after buying an additional 303,154 shares during the last quarter. Williamson Legacy Group LLC purchased a new position in Advanced Micro Devices during the 4th quarter worth $1,118,000. Thoroughbred Financial Services LLC grew its stake in Advanced Micro Devices by 8.8% during the 4th quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer's stock worth $7,030,000 after buying an additional 2,654 shares during the last quarter. Finally, Zweig DiMenna Associates LLC grew its stake in Advanced Micro Devices by 127.6% during the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer's stock worth $11,746,000 after buying an additional 40,708 shares during the last quarter. 71.34% of the stock is owned by institutional investors.

Key Advanced Micro Devices News

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

• Positive Sentiment: Barclays raised its price target on AMD to $665, reinforcing the bullish case that rising CPU demand tied to agentic AI could drive further upside. CPU Demand Rapidly Rising Amid Expanding Agentic AI, Says Barclays, Raises PT On Advanced Micro (AMD) To $665
• Positive Sentiment: Analysts remain constructive on AMD’s AI infrastructure role, with recent reports highlighting strong demand for EPYC and Instinct chips and continued institutional buying support. Why Is Advanced Micro (AMD) Up 28.8% Since Last Earnings Report?
• Positive Sentiment: TSMC reiterated that AI chip demand remains strong and supply will stay tight for years, a favorable backdrop for AMD’s foundry-dependent growth plans. TSMC CEO Warns Chip Supply Won’t Meet AI-Fueled Demand for Years
• Neutral Sentiment: AMD’s recent rally has left the stock extended, and technical commentary notes it is trading near highs with overbought conditions, which can amplify volatility. What Is Going On With AMD Stock On Thursday?
• Negative Sentiment: Broadcom’s disappointing AI guidance dragged down the semiconductor group and triggered short-term selling in AMD shares as investors reassessed the pace of AI demand. Broadcom rout hits Micron, AMD, others: AI demand, memory-chip cycle under focus
• Negative Sentiment: Sentiment was also tempered by reports of insider selling, including director Nora Denzel’s recent share sales near the stock’s highs, which may be viewed as profit-taking after a strong run. Advanced Micro Devices NASDAQ: AMD Director Nora Denzel Sells 1,821 Shares

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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