Advanced Micro Devices (NASDAQ:AMD) Trading 1.8% Higher - Time to Buy?

Key Points

• AMD shares rose 1.8% to $484.64, but trading volume was 34% below the average session volume. The stock has more than doubled this year and trades at a demanding P/E ratio of 158.9.
• Growth expectations center on data-center EPYC CPUs, Instinct AI accelerators and the Helios rack-scale AI platform, with analysts viewing cloud demand and AI infrastructure spending as key catalysts. However, Nvidia competition, AI-profitability concerns and potential execution or guidance disappointments pose significant risks.
• Wall Street’s consensus rating is “Moderate Buy”, with an average price target of $529.46. AMD’s latest quarter exceeded estimates, reporting $1.37 in EPS and $10.25 billion in revenue, though insider selling—including sales by CEO Lisa Su—has occurred recently.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 1.8% during trading on Monday . The stock traded as high as $490.95 and last traded at $484.64. 24,033,412 shares were traded during mid-day trading, a decline of 34% from the average session volume of 36,150,703 shares. The stock had previously closed at $476.15.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Analysts expect continued momentum from EPYC server CPUs, Instinct AI accelerators and cloud demand. Data-center revenue is now the key growth driver, with some estimates calling for more than $6.5 billion in quarterly revenue. Can Strong Data Center Revenues Boost AMD's Top Line in Q2 Earnings?
• Positive Sentiment: AMD’s Helios rack-scale AI platform could allow the company to compete with Nvidia across complete AI infrastructure systems rather than only individual GPUs. Analysts also see server CPUs and a potential rack-scale product ramp as two major growth engines. AMD’s Helios Is Coming for Nvidia’s Rack, Not Just Its GPU
• Positive Sentiment: Bernstein raised its AI-server outlook ahead of results, reinforcing investor confidence that accelerating AI infrastructure spending can support AMD’s revenue and earnings growth. AMD Stock: Bernstein Raises AI Server Forecast Ahead of Q2 Results
• Neutral Sentiment: Options markets imply roughly an 8.5%–9% post-earnings move, signaling unusually high volatility. Prediction-market activity is focused on whether data-center revenue clears key thresholds, making that segment and management’s outlook the main catalysts. AMD Options Price A 9% Swing On Earnings
• Negative Sentiment: AMD’s stock has more than doubled during the year and trades at demanding earnings multiples. Analysts warn that an earnings beat may already be reflected in the price, leaving little tolerance for weaker guidance, slowing AI demand or execution problems. AMD Earnings: Sky-High Expectations Leave Little Room for Missteps
• Negative Sentiment: Semiconductor shares remain sensitive to broader concerns about AI profitability and overseas chip-market weakness. Competitive pressure from Nvidia, including its tighter integration of internally designed chips, is another risk to AMD’s long-term margin and market-share narrative. AMD, NVDA, and INTC Forecasts – AI Profitability Worries Pull Tech Lower

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on AMD shares. Loop Capital raised shares of Advanced Micro Devices to a "strong-buy" rating in a research report on Tuesday, June 16th. Morgan Stanley increased their price target on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Evercore restated an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Citigroup upgraded shares of Advanced Micro Devices from a "market perform" rating to a "buy" rating in a report on Wednesday, July 22nd. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $540.00 target price on shares of Advanced Micro Devices in a report on Friday, July 24th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $529.46.

Advanced Micro Devices Stock Performance

The company has a market capitalization of $790.25 billion, a P/E ratio of 158.90 and a beta of 2.48. The company's 50 day moving average is $515.42 and its 200-day moving average is $350.69. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. Advanced Micro Devices's quarterly revenue was up 37.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.96 earnings per share. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.27 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, Director Nora Denzel sold 8,626 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares of the company's stock, valued at $45,504,306. This trade represents a 9.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company's stock, valued at $1,334,572,400.31. The trade was a 4.14% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 310,310 shares of company stock worth $141,185,456. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of the stock. Joseph Group Capital Management bought a new stake in Advanced Micro Devices during the 4th quarter valued at about $25,000. Sarver Vrooman Wealth Advisors bought a new position in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Cornerstone Financial Management LLC bought a new position in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices during the fourth quarter valued at approximately $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices during the first quarter valued at approximately $31,000. 71.34% of the stock is currently owned by institutional investors.

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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