Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.4% Following Analyst Upgrade

Key Points

• AMD shares rose 2.4% after TD Cowen lifted its price target from $500 to $600 and reiterated a buy rating. The stock traded as high as $517.50 during the session.
• Several other analysts also turned bullish on AMD, with multiple firms upgrading the stock and raising targets. MarketBeat says the consensus view is still Moderate Buy, with an average price target of $419.86.
• AMD continues to get attention for its AI and data-center growth story, including ramping production of its 2nm EPYC Venice server processor and involvement in AI infrastructure investments. However, the article also notes competitive pressure from Nvidia and some insider selling.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares rose 2.4% during trading on Tuesday after TD Cowen raised their price target on the stock from $500.00 to $600.00. TD Cowen currently has a buy rating on the stock. Advanced Micro Devices traded as high as $517.50 and last traded at $522.1790. Approximately 33,200,290 shares changed hands during trading, a decline of 13% from the average daily volume of 38,076,196 shares. The stock had previously closed at $510.13.

A number of other brokerages also recently issued reports on AMD. BTIG Research upgraded Advanced Micro Devices to a "buy" rating in a research report on Wednesday, May 6th. Sanford C. Bernstein upgraded shares of Advanced Micro Devices from a "market perform" rating to an "outperform" rating and raised their price objective for the company from $265.00 to $525.00 in a research report on Wednesday, May 6th. Susquehanna raised their price objective on shares of Advanced Micro Devices from $375.00 to $450.00 and gave the company a "positive" rating in a research report on Wednesday, May 6th. The Goldman Sachs Group upgraded Advanced Micro Devices from a "neutral" rating to a "buy" rating and increased their price objective for the company from $240.00 to $450.00 in a research report on Wednesday, May 6th. Finally, Needham & Company LLC upgraded Advanced Micro Devices to a "buy" rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $419.86.

Insider Buying and Selling

In related news, CEO Lisa T. Su sold 125,000 shares of the firm's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total value of $55,688,750.00. Following the sale, the chief executive officer directly owned 3,021,899 shares of the company's stock, valued at $1,346,286,223.49. This trade represents a 3.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the sale, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 329,085 shares of company stock worth $114,051,007. Insiders own 0.50% of the company's stock.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD started ramping production of its next-generation 2nm EPYC Venice server processor, reinforcing its growth story in AI data centers and supporting the stock. Why Advanced Micro Devices (AMD) Is Up 10.4% After Launching 2nm EPYC Venice Production
• Positive Sentiment: AMD joined DriveNets’ $410 million funding round, signaling continued investment in AI networking infrastructure beyond chips alone. AMD Joins DriveNets Funding Round
• Positive Sentiment: Super Micro Computer highlighted AMD Helios at Computex, which helps validate AMD’s role in rack-scale AI systems and data-center buildouts. Super Micro Computer (SMCI) Stock Surges on AMD Helios Rack-Scale AI Platform Reveal
• Neutral Sentiment: Analysts and market commentators continue to debate whether AMD’s rapid rally leaves the stock expensive relative to peers, which may be capping upside in the near term. AMD vs. Nvidia Stock: One Metric Tells Me Which Is Clearly the Better Buy
• Negative Sentiment: Nvidia’s new RTX Spark PC chip intensifies competition in the personal-computer market, a headwind for AMD’s Ryzen franchise. Nvidia Just Derailed the Chip Rally. Intel, AMD Are Falling Sharply.
• Negative Sentiment: ARK Invest reportedly sold AMD shares while rotating into Nvidia, adding to short-term pressure from profit-taking and relative performance concerns. Cathie Wood Sells $56.2 Million Worth Of AMD Shares Again, But Loads Up On Nvidia Stock Amid PC Chip Buzz

Institutional Trading of Advanced Micro Devices

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Norges Bank bought a new position in Advanced Micro Devices in the fourth quarter worth about $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. bought a new stake in Advanced Micro Devices during the fourth quarter worth about $1,000,783,000. Wellington Management Group LLP boosted its stake in Advanced Micro Devices by 335.9% during the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock worth $784,330,000 after acquiring an additional 3,735,807 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in Advanced Micro Devices by 340.1% during the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer's stock valued at $1,016,796,000 after buying an additional 3,669,054 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Stock Up 2.4%

The stock has a 50 day simple moving average of $333.88 and a 200-day simple moving average of $257.70. The firm has a market cap of $851.47 billion, a PE ratio of 171.21, a PEG ratio of 1.52 and a beta of 2.40. 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 released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion during 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 revenue was up 37.8% compared to the same quarter last year. During the same period last year, the business earned $0.96 EPS. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.2 EPS for the current fiscal year.

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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