Advanced Micro Devices (NASDAQ:AMD) Trading Up 8.1% - What's Next?

Key Points

• AMD shares rose 8.1% in mid-day trading, with the stock reaching an intraday high of $449.39 as investors continued to buy into the semiconductor rally. Trading volume was slightly below average.
• Recent news flow is constructive for AMD, with analysts raising price targets and citing stronger server CPU demand, AI-driven growth, and expanding infrastructure spending as key tailwinds.
• Despite the rally, some market commentary warns that valuation may be stretched after the stock’s big run this year, even though AMD’s latest earnings beat expectations on both EPS and revenue.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was up 8.1% during mid-day trading on Wednesday . The company traded as high as $449.39 and last traded at $447.58. Approximately 35,228,373 shares were traded during trading, a decline of 10% from the average daily volume of 39,330,496 shares. The stock had previously closed at $414.05.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD is moving higher alongside a broad semiconductor rally as traders position for Nvidia’s earnings report, which is seen as a key catalyst for the AI chip trade. Why Is AMD Stock Up Today, 5/20/26?
• Positive Sentiment: Recent analyst action remains constructive, including Evercore ISI raising its price target and other firms pointing to stronger server CPU demand and a larger AI-driven total addressable market for AMD. Evercore ISI Raises Price Target on Advanced Micro Devices (AMD) Amid AI Market Shift
• Positive Sentiment: Market commentary continues to frame AMD as a winner from expanding server CPU opportunities, with some reports highlighting AI inference demand and a growing infrastructure spending cycle. BofA names top chip stocks as server CPU TAM seen reaching $125bn by 2030
• Neutral Sentiment: Some articles note that AMD has already had a huge run this year, and a few commentators question whether the stock is getting expensive after doubling. AMD Stock Has Doubled This Year. Is It Still a Buy?
• Neutral Sentiment: Insider selling has been heavy over the past six months, but this is more of a longer-term governance/data point than an immediate trading driver today.
• Negative Sentiment: Bearish pieces continue to warn that AMD’s valuation may be stretched and that the stock still trades in Nvidia’s shadow, which could limit upside if expectations get too lofty. AMD Stock Has Doubled This Year. Is It Still a Buy?

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on AMD shares. Needham & Company LLC upgraded shares of Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Stifel Nicolaus raised their price objective on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Zacks Research upgraded shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Truist Financial set a $478.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Finally, The Goldman Sachs Group upgraded shares of Advanced Micro Devices from a "neutral" rating to a "buy" rating and raised their price objective for the company from $240.00 to $450.00 in a report on Wednesday, May 6th. Two equities research 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, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $410.00.

Advanced Micro Devices Price Performance

The company's 50 day moving average is $282.35 and its 200 day moving average is $242.59. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $729.82 billion, a price-to-earnings ratio of 146.75, a price-to-earnings-growth ratio of 1.25 and a beta of 2.40.

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

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the firm's 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 transaction, the chief executive officer directly owned 3,021,899 shares of the company's stock, valued at approximately $1,346,286,223.49. This trade represents a 3.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 firm's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the transaction, the executive vice president directly owned 1,236,037 shares in the company, valued at $432,612,950. The trade was 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. In the last three months, insiders have sold 309,598 shares of company stock valued at $105,644,316. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AMD. Joseph Group Capital Management purchased a new stake in Advanced Micro Devices during the fourth quarter worth about $25,000. Koesten Hirschmann & Crabtree INC. boosted its holdings in Advanced Micro Devices by 61.0% during the third quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 61 shares in the last quarter. Sarver Vrooman Wealth Advisors purchased a new stake in Advanced Micro Devices during the fourth quarter worth about $27,000. Cornerstone Financial Management LLC purchased a new stake in Advanced Micro Devices during the fourth quarter worth about $27,000. Finally, Basepoint Wealth LLC purchased a new stake in Advanced Micro Devices during the fourth quarter worth about $30,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.