Advanced Micro Devices (NASDAQ:AMD) Trading Up 7.8% - Still a Buy?

Key Points

• AMD shares rose 7.8% on Tuesday, trading as high as $506.96 as investors continued to bid up chip stocks tied to AI and hyperscaler spending.
• News flow around AMD was largely positive, with commentary highlighting its agentic AI opportunity, new enterprise AI deployments such as OneQode’s planned use of AMD Instinct GPUs, and upbeat analyst price-target raises.
• Wall Street remains constructive overall: AMD recently beat quarterly estimates with $1.37 EPS on $10.25 billion in revenue, and analysts now have a consensus “Moderate Buy” rating with an average target price of $410.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was up 7.8% on Tuesday . The company traded as high as $506.96 and last traded at $503.89. Approximately 37,954,995 shares were traded during trading, a decline of 3% from the average daily volume of 39,159,109 shares. The stock had previously closed at $467.51.

Key Advanced Micro Devices News

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

• Positive Sentiment: Investor sentiment is improving around AMD’s AI opportunity, with articles highlighting “agentic AI” as a major growth driver for EPYC CPUs and suggesting Wall Street may still be underestimating AMD’s upside. Wall Street Is Only Just Beginning to Recognize Advanced Micro Devices’ Agentic AI Upside Potential
• Positive Sentiment: AMD is getting a boost from broad strength in AI and semiconductor stocks, as traders rotate into chipmakers tied to hyperscaler spending, advanced packaging demand, and AI infrastructure growth. NVDA Gains 23.5% Since April, TSM Up 19.7%: What's Driving the Rally?
• Positive Sentiment: OneQode announced plans to deploy AMD Instinct GPUs and AMD Helios rack-scale solutions for its global AI infrastructure rollout, which supports the view that AMD is gaining traction in enterprise AI deployments. OneQode to Deploy AMD Instinct GPUs and Plans for AMD Helios Rack-Scale Solution for Global AI Infrastructure
• Positive Sentiment: Recent analyst commentary remains constructive, including higher price targets and coverage suggesting AMD could still have substantial long-term upside, even toward a $1 trillion market-cap trajectory over time. What Will It Take for AMD’s Market Cap to Hit $1 Trillion?
• Neutral Sentiment: Some commentary warns that momentum in AMD and other chip stocks may eventually cool, and a few pieces frame the rally as potentially stretched rather than fundamentally new. Intel, AMD, and Other Momentum Stocks Look Unstoppable. Look Again.
• Negative Sentiment: Bearish takes from some market commentators argue Nvidia could pressure AMD in CPUs and that competition remains a risk, which could temper the rally if investors refocus on market-share concerns. Nvidia Vs. AMD: Nvidia Will Eat AMD's CPU Lunch

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on AMD shares. KeyCorp boosted their price target on Advanced Micro Devices from $330.00 to $530.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Seaport Research Partners raised Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price objective on the stock in a research report on Wednesday, May 6th. Evercore reiterated an "outperform" rating and issued a $579.00 target price on shares of Advanced Micro Devices in a research note on Tuesday, May 19th. Raymond James Financial initiated coverage on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. They set a "market perform" rating for the company. Finally, Wells Fargo & Company raised their price target on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $410.00.

Advanced Micro Devices Stock Performance

The business has a 50 day simple moving average of $302.82 and a 200 day simple moving average of $248.30. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $821.64 billion, a PE ratio of 165.21, a PEG ratio of 1.37 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter in the previous year, the firm earned $0.96 earnings per share. The company's revenue was up 37.8% on a year-over-year basis. Equities research analysts predict that Advanced Micro Devices, Inc. will post 6.2 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the sale, the chief executive officer directly owned 3,021,899 shares in the company, valued at approximately $1,346,286,223.49. The trade was a 3.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of the business's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the sale, the executive vice president directly owned 1,236,037 shares in the company, valued at $432,612,950. This trade represents a 2.47% 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. Over the last 90 days, insiders have sold 329,085 shares of company stock worth $114,051,007. 0.50% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

Several large investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in Advanced Micro Devices in the 4th quarter worth approximately $4,929,312,000. Jennison Associates LLC lifted its stake in Advanced Micro Devices by 181.6% during the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer's stock valued at $2,336,552,000 after acquiring an additional 7,035,991 shares during the period. Cardano Risk Management B.V. purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $1,000,783,000. Wellington Management Group LLP boosted its holdings in shares of Advanced Micro Devices by 335.9% in the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock valued at $784,330,000 after acquiring an additional 3,735,807 shares during the last quarter. Finally, Franklin Resources Inc. increased its stake in shares of Advanced Micro Devices by 340.1% in the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer's stock worth $1,016,796,000 after acquiring an additional 3,669,054 shares during the period. Hedge funds and other institutional investors own 71.34% of the company's stock.

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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