Advanced Micro Devices (NASDAQ:AMD) Trading 7.3% Higher - Should You Buy?

Key Points

• AMD shares jumped 7.3% with heavy volume (≈47.9M) after reports of CPU price increases, AI-driven demand and a potential deal to supply ~10,000 MI-series accelerators to Upstage, supported by a broader semiconductor rally.
• AMD recently beat estimates (EPS $1.53 vs $1.32; revenue $10.27B, +34.1% YoY) and carries a Wall Street consensus of "Moderate Buy" with an average target of $290.53, though analyst views are mixed.
• Risks include sizable recent insider selling, potential competition from Arm entering high‑performance server chips, and a high trailing P/E (~83), leaving the stock sensitive to execution and guidance.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price was up 7.3% during trading on Wednesday . The company traded as high as $221.33 and last traded at $220.27. Approximately 47,860,258 shares were traded during trading, an increase of 26% from the average daily volume of 38,054,559 shares. The stock had previously closed at $205.37.

More Advanced Micro Devices News

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

• Positive Sentiment: Reports that AMD (alongside Intel) is raising CPU prices, a sign of durable pricing power driven by AI-driven demand — this can lift gross margins and free cash flow if realized. AMD and Intel Are Leading a Chip Stock Rally Today. Here's Why.
• Positive Sentiment: Advanced talks / reported deal to supply ~10,000 MI-series AI accelerators to South Korean AI firm Upstage would be a meaningful commercial win and validate AMD’s Instinct/MI product competitiveness and international traction. AMD AI Deal Talks With Upstage Highlight Valuation Gap And Growth Story
• Positive Sentiment: Broader semiconductor rally and headlines (including hopes for geopolitical stability) are supporting chip stocks — flows into tech ETFs that hold AMD amplify the move and improve market sentiment into earnings. Why Advanced Micro Devices Stock is Gaining Today
• Neutral Sentiment: AMD’s inclusion among tech leaders invited to an AI advisory council could help with policy visibility and industry influence but is unlikely to move near-term fundamentals materially. Trump Names Jensen Huang, Mark Zuckerberg To AI Advisory Council: What It Means For NVDA, META
• Neutral Sentiment: Wall Street views remain mixed: many analysts are bullish on AMD’s AI/datacenter upside, while some firms urge caution (e.g., Bernstein flagged relative risk), so expect divergent research notes and continued volatility. ‘Own Nvidia, Broadcom, But Avoid AMD Stock – Bernstein Weighs In on AI Chip Stocks
• Negative Sentiment: Large insider selling activity has been reported recently (numerous sales by executives). Heavy insider sales can raise governance/valuation concerns for some investors. QQQ is up 0.7% today, on AMD stock price movement
• Negative Sentiment: Longer-term competitive risk: Arm’s move to sell its own high-performance server chips adds a potential new rival in the server/AI CPU space — monitor how that development affects AMD’s addressable market and pricing dynamics over time. Arm to Sell Its Own Chips, Eyeing Sales Goal of $15 Billion

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on AMD shares. Cantor Fitzgerald reissued an "overweight" rating on shares of Advanced Micro Devices in a report on Monday, February 2nd. Piper Sandler reaffirmed an "overweight" rating on shares of Advanced Micro Devices in a research note on Wednesday, February 25th. Wells Fargo & Company reissued an "overweight" rating and issued a $345.00 target price on shares of Advanced Micro Devices in a research note on Friday, January 30th. Rosenblatt Securities restated a "buy" rating and set a $300.00 price target on shares of Advanced Micro Devices in a report on Wednesday, February 4th. Finally, Morgan Stanley lowered their price target on Advanced Micro Devices from $260.00 to $255.00 and set an "equal weight" rating for the company in a research report on Wednesday, February 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, Advanced Micro Devices currently has an average rating of "Moderate Buy" and a consensus target price of $290.53.

Advanced Micro Devices Stock Performance

The company's 50-day moving average price is $214.66 and its 200 day moving average price is $212.38. The stock has a market capitalization of $359.13 billion, a PE ratio of 83.12, a PEG ratio of 0.76 and a beta of 1.98. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.01 and a current ratio of 2.85.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.21. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The company had revenue of $10.27 billion for the quarter, compared to analysts' expectations of $9.65 billion. During the same quarter in the previous year, the company earned $1.09 earnings per share. Advanced Micro Devices's quarterly revenue was up 34.1% on a year-over-year basis. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 7,500 shares of Advanced Micro Devices stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $204.87, for a total transaction of $1,536,525.00. Following the completion of the transaction, the executive vice president directly owned 129,598 shares of the company's stock, valued at $26,550,742.26. This trade represents a 5.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Forrest Eugene Norrod sold 19,450 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $216.81, for a total transaction of $4,216,954.50. Following the sale, the executive vice president directly owned 289,098 shares in the company, valued at $62,679,337.38. The trade was a 6.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 239,392 shares of company stock worth $50,016,383. Corporate insiders own 0.06% of the company's stock.

Institutional Trading of Advanced Micro Devices

Hedge funds have recently made changes to their positions in the stock. Old North State Trust LLC grew its stake in shares of Advanced Micro Devices by 73.2% in the 4th quarter. Old North State Trust LLC now owns 5,260 shares of the semiconductor manufacturer's stock worth $1,126,000 after buying an additional 2,223 shares during the last quarter. J. Derek Lewis & Associates Inc. purchased a new position in Advanced Micro Devices during the fourth quarter valued at $584,000. Purpose Unlimited Inc. bought a new stake in Advanced Micro Devices in the fourth quarter worth $18,251,000. Stance Capital LLC grew its stake in shares of Advanced Micro Devices by 204.1% in the fourth quarter. Stance Capital LLC now owns 25,773 shares of the semiconductor manufacturer's stock worth $5,519,000 after acquiring an additional 17,299 shares during the last quarter. Finally, Cornerstone Planning LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth $5,024,000. 71.34% of the stock is owned by institutional investors.

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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