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

Key Points

• Zacks Research upgraded AMD from “Hold” to “Strong Buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $532.19.
• AMD reported quarterly EPS of $1.66 and revenue of $11.54 billion, beating estimates; revenue rose 50.1% year over year.
• Despite substantial institutional ownership of 71.34%, AMD insiders sold roughly $141.2 million of shares over the past 90 days.

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

AMD has been the topic of a number of other reports. Oppenheimer cut Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a research note on Wednesday, May 6th. UBS Group reiterated an "overweight" rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Loop Capital upgraded shares of Advanced Micro Devices to a "strong-buy" rating in a research note on Tuesday, June 16th. Evercore reaffirmed an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Finally, Benchmark lifted their price objective on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $532.19.

Advanced Micro Devices Stock Performance

Shares of AMD opened at $518.58 on Monday. The firm has a market capitalization of $845.60 billion, a P/E ratio of 170.03 and a beta of 2.48. Advanced Micro Devices has a 52 week low of $149.22 and a 52 week high of $584.73. The stock has a 50 day moving average price of $516.06 and a two-hundred day moving average price of $354.63. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion for the quarter, compared to analysts' expectations of $11.31 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 50.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.48 earnings per share. Equities analysts forecast that Advanced Micro Devices will post 6.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, Director Nora Denzel sold 8,626 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the sale, the director owned 87,173 shares in the company, valued at approximately $45,504,306. This trade represents a 9.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction on 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 sale, the executive vice president directly owned 105,222 shares of the company's stock, valued at $46,759,604.58. This represents a 18.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 310,310 shares of company stock worth $141,185,456 in the last ninety days. Insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank purchased a new position in Advanced Micro Devices in the 4th quarter worth approximately $4,929,312,000. Jennison Associates LLC grew its stake in Advanced Micro Devices by 181.6% in the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer's stock worth $2,336,552,000 after purchasing an additional 7,035,991 shares during the period. Cardano Risk Management B.V. purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth $1,000,783,000. Wellington Management Group LLP raised its stake in shares of Advanced Micro Devices by 335.9% in the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock worth $784,330,000 after purchasing an additional 3,735,807 shares during the last quarter. Finally, Franklin Resources Inc. grew its stake in shares of Advanced Micro Devices by 340.1% in the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer's stock worth $1,016,796,000 after acquiring an additional 3,669,054 shares during the period. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, while adjusted EPS of $1.66 exceeded consensus. Data-center revenue reportedly more than doubled to approximately $6.7 billion, underscoring strong demand for EPYC processors and Instinct AI accelerators. AMD's revenue climbs 50% and data center sales doubled, but the stock is down
• Positive Sentiment: Management guided for third-quarter revenue of roughly $12.7 billion to $13.3 billion, above the approximately $12.4 billion analyst consensus. CEO Lisa Su also said unexpected server CPU demand is pressuring supply but expects conditions and growth to improve in 2027. AMD forecasts upbeat revenue on AI data-center demand
• Positive Sentiment: AMD said Meta, OpenAI and Anthropic are helping optimize AI models for its platform, potentially strengthening the ROCm software ecosystem and adoption of AMD accelerators. Dell also selected AMD Instinct MI355X GPUs for a new AI and high-performance-computing platform. AMD CEO says major AI companies are improving its ecosystem
• Neutral Sentiment: William Blair maintained a Hold rating, saying modest guidance upside and AI-driven growth potential are balanced by competitive pressure and uncertainty around the pace of the Helios rack-scale platform ramp. Analyst maintains Hold on AMD
• Negative Sentiment: Investors viewed the earnings and forecast as only modestly ahead of expectations, seeking clearer evidence that the multibillion-dollar AI spending boom will translate into faster growth and a larger Helios opportunity. AMD’s high valuation leaves limited room for disappointment. AMD falls as investors seek bigger AI payoff
• Negative Sentiment: SpaceX said it would exclusively use Nvidia AI chips, providing a high-profile competitive endorsement for Nvidia and weighing on AMD and other semiconductor stocks. AMD, Nvidia, Intel and other stocks that explain today's market

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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