Advanced Micro Devices (NASDAQ:AMD) Trading Up 8.1% After Analyst Upgrade

Key Points

• AMD shares rose 8.1% after Wall Street Zen upgraded the stock from hold to buy, with the shares trading near $544.43 after hitting an intraday high of $548.14.
• Several analysts remain upbeat on AMD, including recent price target increases from Stifel Nicolaus and TD Cowen, while consensus data still shows a Moderate Buy rating overall.
• Investor focus is also on AMD’s AI and data center growth, supported by its expanded Microsoft Azure partnership and upcoming earnings on August 4, though high valuation and insider selling remain risks.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) rose 8.1% during trading on Tuesday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $548.14 and last traded at $544.43. Approximately 27,758,728 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 36,535,055 shares. The stock had previously closed at $503.57.

Several other equities analysts have also recently commented on the stock. Stifel Nicolaus raised their price target on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Citigroup lowered Advanced Micro Devices from a "buy" rating to a "market perform" rating in a report on Friday, June 12th. BTIG Research raised Advanced Micro Devices to a "buy" rating in a research note on Wednesday, May 6th. Truist Financial set a $478.00 price target on Advanced Micro Devices in a research report on Wednesday, May 6th. Finally, TD Cowen lifted their price objective on Advanced Micro Devices from $600.00 to $675.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $468.65.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the transaction, the executive vice president owned 105,222 shares of the company's stock, valued at $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Mark D. Papermaster sold 6,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the completion of the sale, the executive vice president owned 1,233,687 shares of the company's stock, valued at approximately $661,663,348.71. This represents a 0.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 341,630 shares of company stock valued at $152,147,456 over the last quarter. 0.50% of the stock is owned by corporate insiders.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD’s expanded Microsoft Azure partnership should increase demand for Helios AI systems, EPYC CPUs, and networking products, improving the company’s multi-year AI revenue outlook.
• Positive Sentiment: Investors are positioning ahead of AMD’s Advancing AI 2026 event, where new product launches and customer announcements could provide another catalyst for the stock.
• Positive Sentiment: Analyst coverage and elevated price targets remain supportive, reflecting optimism that AMD’s AI and data center business can keep growing quickly.
• Neutral Sentiment: The upcoming August 4 earnings report is keeping attention on whether AMD can maintain its recent AI-driven growth and margin profile.
• Negative Sentiment: Some commentary points to AMD’s premium valuation and heavy insider selling as risks if execution on its AI rollout disappoints.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Joseph Group Capital Management acquired a new position in Advanced Micro Devices in the 4th quarter valued at about $25,000. Sarver Vrooman Wealth Advisors purchased a new position in shares of Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices during the first quarter worth approximately $31,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The company has a 50 day moving average price of $504.79 and a 200 day moving average price of $332.48. The firm has a market cap of $887.75 billion, a PE ratio of 178.50, a PEG ratio of 1.43 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted 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 firm had revenue of $10.25 billion for 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 quarterly revenue was up 37.8% on a year-over-year basis. During the same period last year, the firm posted $0.96 EPS. Sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.26 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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