Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.5% - Should You Buy?

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.

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

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Raymond James Financial lifted their price objective on shares of Advanced Micro Devices from $120.00 to $200.00 and gave the company an "outperform" rating in a report on Wednesday, August 6th. Citigroup raised their target price on shares of Advanced Micro Devices from $145.00 to $165.00 and gave the company a "neutral" rating in a report on Friday, July 18th. Roth Capital set a $150.00 target price on shares of Advanced Micro Devices and gave the company a "buy" rating in a report on Friday, June 13th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $200.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 6th. Finally, Truist Financial raised their target price on shares of Advanced Micro Devices from $111.00 to $173.00 and gave the company a "hold" rating in a report on Wednesday, August 6th. Four research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Advanced Micro Devices presently has an average rating of "Moderate Buy" and an average target price of $180.12.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.05, a current ratio of 2.49 and a quick ratio of 1.81. The stock has a 50 day simple moving average of $154.45 and a two-hundred day simple moving average of $121.67. The company has a market cap of $272.25 billion, a PE ratio of 96.41, a PEG ratio of 1.95 and a beta of 1.94.

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

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

Insider Buying and Selling

In other news, EVP Mark D. Papermaster sold 17,998 shares of the business's stock in a transaction that occurred on Tuesday, July 15th. The stock was 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 of the company's stock, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Paul Darren Grasby sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total value of $1,732,100.00. Following the completion of the transaction, the executive vice president directly owned 125,505 shares in the company, valued at approximately $21,738,721.05. The trade was a 7.38% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Pinney & Scofield Inc. lifted its holdings in shares of Advanced Micro Devices by 81.0% in the 2nd quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer's stock valued at $27,000 after buying an additional 85 shares during the period. Greenline Partners LLC acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at approximately $28,000. Farmers & Merchants Trust Co of Chambersburg PA grew its position in Advanced Micro Devices by 277.8% during the first quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock worth $28,000 after buying an additional 200 shares during the period. American Capital Advisory LLC grew its position in Advanced Micro Devices by 90.3% during the first quarter. American Capital Advisory LLC now owns 274 shares of the semiconductor manufacturer's stock worth $28,000 after buying an additional 130 shares during the period. Finally, Kozak & Associates Inc. grew its position in Advanced Micro Devices by 67.6% during the first quarter. Kozak & Associates Inc. now owns 305 shares of the semiconductor manufacturer's stock worth $29,000 after buying an additional 123 shares during the period. Institutional investors and hedge funds own 71.34% of the company's stock.

About Advanced Micro Devices

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.

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