Advanced Micro Devices (NASDAQ:AMD) Trading Up 1.2% - Still a Buy?

Key Points

• AMD's new MI450 AI accelerator, rising EPYC CPU demand and customer wins (e.g., Dayhoff's 330× GPU speedup) create meaningful catalysts that could drive data‑center GPU and server revenue upside.
• The company beat Q1 expectations with $10.27B revenue (+34.1%) and $1.53 EPS, and Wall Street's consensus is a Moderate Buy with an average target of $290.19, even as the shares trade at a rich P/E of 97.4 (market cap ≈ $420.8B).
• Risks include intensifying competition from large cloud players (notably Amazon's reported $50B chip push) and recent insider selling, which—combined with the high valuation—could limit near‑term upside.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 1.2% on Wednesday . The company traded as high as $258.18 and last traded at $258.12. 24,474,156 shares traded hands during trading, a decline of 34% from the average session volume of 37,185,941 shares. The stock had previously closed at $255.07.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: MI450 AI accelerator could be a major inflection point if real-world performance matches claims, giving AMD material upside in data‑center GPUs. AMD's MI450 Chip Could Change Everything for the Stock. Here's What Investors Need to Know Before It Launches.
• Positive Sentiment: Analysis argues AMD is moving beyond a “discount” role to become a core competitor to NVIDIA by reducing software barriers (CUDA) and scaling AI infrastructure wins. A Tectonic Shift in AI Is Underway and AMD Stock Is No Longer a ‘Discount’ Competitor to Nvidia. It’s a Bet on the Future.
• Positive Sentiment: UALink standard ratification was cited as a near‑term trigger that lifted the stock and reinforced buy-side confidence ahead of Q1 results. Advanced Micro Devices (AMD) Stock Surges 3% Following UALink Standard Approval
• Positive Sentiment: Growing “agentic AI” demand is lifting EPYC CPU orders, supporting revenue upside for AMD’s server business. AMD Stock Jumps as Agentic AI Growth Fuels Increased EPYC CPU Demand
• Positive Sentiment: Customer validation: Dayhoff Health reports a 330× speedup using AMD GPU acceleration, a tangible example of commercial GPU adoption outside hyperscalers. Dayhoff Health Reports 330× Increase in Microbiome Processing Speed Through AMD GPU Acceleration
• Neutral Sentiment: AMD participated in a $60M funding round for autonomous‑driving startup Wayve — strategic partnership exposure but modest direct financial impact. Wayve Snags $60M In New Investments from AMD, Qualcomm, and Arm
• Neutral Sentiment: Momentum signal: the stock recently posted an unusually long winning streak and a 30% gain over 10 trading days — a bullish technical setup, but history warns of short‑term mean reversion. AMD Stock Surged 30% In Longest Run Since 2005 — Here's What History Signals Next
• Negative Sentiment: Competitive risk: coverage discusses large cloud players (and Amazon’s potential $50B chip push) reshaping the AI chip landscape — a long‑term threat to incumbents’ pricing and share. Amazon's $50 Billion AI Chip Business: A Significant Threat to Nvidia?
• Negative Sentiment: Valuation caution: some analysts argue AMD’s growth is real but that much upside may already be priced in, highlighting a rich multiple and leaving limited near‑term upside without execution beats. AMD: Growth Is Real, Upside Is Not

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. Mizuho raised their price objective on Advanced Micro Devices from $275.00 to $280.00 and gave the company an "outperform" rating in a report on Wednesday, February 25th. Roth Mkm reaffirmed a "buy" rating on shares of Advanced Micro Devices in a research note on Tuesday, February 24th. Wedbush restated an "outperform" rating and issued a $290.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, February 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $230.00 price objective on shares of Advanced Micro Devices in a research note on Monday, March 16th. Finally, Phillip Securities upgraded shares of Advanced Micro Devices from a "moderate buy" rating to a "strong-buy" rating in a research report on Sunday, February 8th. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Advanced Micro Devices presently has an average rating of "Moderate Buy" and an average target price of $290.19.

Advanced Micro Devices Stock Performance

The business's fifty day simple moving average is $208.34 and its 200-day simple moving average is $219.06. The firm has a market cap of $420.82 billion, a P/E ratio of 97.40, a price-to-earnings-growth ratio of 0.92 and a beta of 1.96. The company has a current ratio of 2.85, a quick ratio of 2.01 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 EPS for the quarter, beating the consensus estimate of $1.32 by $0.21. The firm had revenue of $10.27 billion during the quarter, compared to the consensus estimate of $9.65 billion. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The company's quarterly revenue was up 34.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.09 earnings per share. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 7,500 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $204.87, for a total value of $1,536,525.00. Following the completion of the sale, the executive vice president owned 129,598 shares in the company, valued at approximately $26,550,742.26. This trade represents a 5.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Mark D. Papermaster sold 3,293 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $225.00, for a total value of $740,925.00. Following the completion of the sale, the executive vice president owned 1,294,466 shares in the company, valued at approximately $291,254,850. This represents a 0.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 242,685 shares of company stock worth $50,757,308 over the last three months. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently modified their holdings of the stock. Old North State Trust LLC raised its stake in Advanced Micro Devices by 73.2% in the fourth 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 in the last quarter. J. Derek Lewis & Associates Inc. bought a new stake in Advanced Micro Devices during the 4th quarter valued at approximately $584,000. Purpose Unlimited Inc. bought a new stake in Advanced Micro Devices during the 4th quarter valued at approximately $18,251,000. Stance Capital LLC grew its holdings in shares of Advanced Micro Devices by 204.1% during the 4th 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 period. Finally, Cornerstone Planning LLC purchased a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $5,024,000. 71.34% of the stock is owned by hedge funds and other 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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