Advanced Micro Devices (NASDAQ:AMD) Trading 4% Higher - Here's What Happened

Key Points

• AMD shares rose 4% in midday trading, reaching as high as $546.44, as investors reacted to a strong mix of AI- and data-center-related momentum.
• Recent business updates were broadly positive: AMD’s 2nm EPYC Venice production ramp, strong data-center demand, and CFO comments about agentic AI driving significant CPU demand all supported the bullish outlook.
• Wall Street remains constructive but cautious, with several firms raising price targets and keeping buy ratings, even as some analysts warn that AMD’s elevated valuation and rising competition could limit further upside.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was up 4% during mid-day trading on Wednesday . The stock traded as high as $546.44 and last traded at $542.52. Approximately 28,778,548 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 38,604,129 shares. The stock had previously closed at $521.54.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD’s 2nm EPYC Venice production ramp and strong data-center demand are supporting the bullish move and strengthening the AI growth story. Why Advanced Micro Devices (AMD) Is Up 10.4% After Launching 2nm EPYC Venice Production
• Positive Sentiment: AMD CFO Jean Hu said agentic AI is driving “significant demand” for CPUs, which reinforces confidence in the company’s server and AI pipeline. AMD CFO Jean Hu Says Agentic AI Has Driven ‘Significant Demand’ for CPUs
• Positive Sentiment: The broader chip rally, including Marvell’s surge and the SOX index reaching a record high, is lifting sentiment across the semiconductor sector and helping AMD participate in the momentum. Marvell, AMD Rally, Lead Chip Stocks To Record High
• Neutral Sentiment: Analyst coverage remains mixed: some firms are bullish, but AMD’s valuation is now rich, which may limit further upside if growth expectations cool. AMD Trades Close to 52-Week High: Buy, Sell or Hold the Stock?
• Negative Sentiment: Director Nora Denzel recently sold shares, and insider selling can create concern that some executives are taking profits after a strong run. SEC Form 4 filing
• Negative Sentiment: Nvidia’s new PC-chip push is intensifying competition in AI PCs and could pressure AMD’s growth narrative in adjacent markets. Nvidia Shakes Up PC Market With Its Surprise Entry

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Cantor Fitzgerald boosted their price objective on shares of Advanced Micro Devices to $500.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. KeyCorp lifted their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Jefferies Financial Group cut Advanced Micro Devices from a "buy" rating to a "hold" rating in a research report on Wednesday, May 6th. TD Cowen raised their price objective on Advanced Micro Devices from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Monday. Finally, Roth Mkm reiterated a "buy" rating and set a $500.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $419.86.

Advanced Micro Devices Stock Up 4.0%

The company has a market cap of $884.63 billion, a P/E ratio of 177.88, a P/E/G ratio of 1.50 and a beta of 2.50. The company's 50-day moving average is $333.88 and its two-hundred day moving average is $257.70. 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 results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $9.90 billion. During the same quarter in the previous year, the business earned $0.96 earnings per share. The company's revenue was up 37.8% on a year-over-year basis. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the sale, the director owned 87,173 shares of the company's stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of the business's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the sale, the chief executive officer owned 3,021,899 shares of the company's stock, valued at approximately $1,346,286,223.49. This represents 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. Over the last three months, insiders sold 339,532 shares of company stock valued at $119,504,341. Company insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

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

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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