Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.5% - Here's Why

Key Points

• Advanced Micro Devices (AMD) shares increased by 2.5%, reaching a last traded price of $167.73, with trading volume significantly down by 59% from average levels.
• Several analysts have raised their price targets for AMD, with Raymond James setting a new target of $200 and a consensus average price target of $180.12, indicating strong optimism for the stock.
• The company reported a quarterly EPS of $0.48, missing estimates, but revenue rose significantly to $7.69 billion, reflecting a 31.7% year-over-year increase.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price traded up 2.5% during mid-day trading on Friday . The company traded as high as $168.53 and last traded at $167.73. 19,280,049 shares were traded during mid-day trading, a decline of 59% from the average session volume of 46,796,563 shares. The stock had previously closed at $163.71.

Analyst Upgrades and Downgrades

AMD has been the subject of a number of recent analyst reports. Wells Fargo & Company boosted their target price on Advanced Micro Devices from $120.00 to $185.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 16th. Dbs Bank lowered Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 8th. Cantor Fitzgerald reissued an "overweight" rating and issued a $200.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 6th. Roth Capital set a $150.00 target price on Advanced Micro Devices and gave the stock a "buy" rating in a research report on Friday, June 13th. Finally, Benchmark boosted their target price on Advanced Micro Devices from $170.00 to $210.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $181.33.

Advanced Micro Devices Stock Performance

The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05. The business has a 50 day simple moving average of $156.22 and a two-hundred day simple moving average of $122.55. The firm has a market cap of $270.40 billion, a PE ratio of 60.73, a price-to-earnings-growth ratio of 1.93 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.06). The firm had revenue of $7.69 billion for the quarter, compared to analysts' expectations of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The business's quarterly revenue was up 31.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.69 EPS. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, equities research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices declared that its Board of Directors has approved a stock repurchase plan on Wednesday, May 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the semiconductor manufacturer to reacquire up to 3.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, CEO Lisa T. Su sold 225,000 shares of the firm's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $163.97, for a total transaction of $36,893,250.00. Following the transaction, the chief executive officer owned 3,359,748 shares in the company, valued at approximately $550,897,879.56. This trade represents a 6.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total value of $2,790,229.94. Following the transaction, the executive vice president owned 1,713,710 shares in the company, valued at approximately $265,676,461.30. This represents a 1.04% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 252,998 shares of company stock worth $41,415,580. Company insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in Advanced Micro Devices in the second quarter worth about $3,094,662,000. Kingstone Capital Partners Texas LLC acquired a new stake in Advanced Micro Devices in the second quarter worth about $958,422,000. Goldman Sachs Group Inc. boosted its holdings in Advanced Micro Devices by 169.7% in the first quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock worth $1,012,538,000 after acquiring an additional 6,200,850 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in Advanced Micro Devices by 131.5% in the first quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock worth $1,069,846,000 after acquiring an additional 5,915,185 shares in the last quarter. Finally, Toronto Dominion Bank boosted its holdings in Advanced Micro Devices by 443.3% in the fourth quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock worth $660,475,000 after acquiring an additional 4,461,609 shares in the last quarter. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.