Advanced Micro Devices (NASDAQ:AMD) Given New $510.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised AMD’s price target to $510 from $465 while maintaining an “equal weight” rating, implying roughly 5.1% upside. The broader analyst consensus is “Moderate Buy,” with an average target of $608.78.
• AMD shares fell 3.9% to $485.22, though the company recently reported stronger-than-expected quarterly results, including $1.66 in EPS and $11.54 billion in revenue, up 50.1% year over year.
• Investor sentiment remains mixed ahead of AMD’s upcoming earnings report: AI partnerships and new institutional buying support the stock, while concerns about elevated valuation, PC demand and potential post-earnings volatility weigh on the outlook.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its target price boosted by Morgan Stanley from $465.00 to $510.00 in a research report issued on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the semiconductor manufacturer's stock. Morgan Stanley's target price points to a potential upside of 5.11% from the stock's current price.

A number of other brokerages have also commented on AMD. Truist Financial raised their price objective on shares of Advanced Micro Devices from $478.00 to $594.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. TD Cowen reiterated a "buy" rating on shares of Advanced Micro Devices in a report on Monday, October 19th. Susquehanna lifted their price target on Advanced Micro Devices from $620.00 to $650.00 and gave the company a "positive" rating in a research note on Wednesday, October 28th. Robert W. Baird set a $1,250.00 price target on Advanced Micro Devices in a research note on Friday, July 24th. Finally, William Blair restated a "market perform" rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $608.78.

Advanced Micro Devices Stock Down 3.9%

Shares of NASDAQ:AMD traded down $19.58 during trading on Monday, hitting $485.22. 12,105,735 shares of the company's stock traded hands, compared to its average volume of 31,588,883. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a 50-day moving average price of $548.29 and a 200-day moving average price of $409.20. Advanced Micro Devices has a 52 week low of $188.22 and a 52 week high of $658.52. The company has a market cap of $792.11 billion, a price-to-earnings ratio of 125.16, a price-to-earnings-growth ratio of 5.18 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The business had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. During the same period in the prior year, the business earned $0.48 EPS. Advanced Micro Devices's revenue for the quarter was up 50.1% compared to the same quarter last year. As a group, research analysts forecast that Advanced Micro Devices will post 6.50 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Paul Grasby sold 15,000 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the transaction, the executive vice president owned 117,687 shares of the company's stock, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Lisa Su sold 70,000 shares of Advanced Micro Devices stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the completion of the sale, the chief executive officer owned 3,032,156 shares in the company, valued at $1,536,696,660.80. The trade was a 2.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 231,100 shares of company stock valued at $114,867,400 in the last quarter. Company insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently bought and sold shares of the stock. DecisionPoint Financial LLC raised its stake in shares of Advanced Micro Devices by 79.2% during the 3rd quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 19 shares in the last quarter. MJT & Associates Financial Advisory Group Inc. acquired a new stake in shares of Advanced Micro Devices in the third quarter valued at about $29,000. JNBA Financial Advisors increased its stake in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock valued at $30,000 after buying an additional 30 shares during the period. Downshift Financial LLC raised its position in shares of Advanced Micro Devices by 850.0% during the third quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer's stock worth $35,000 after acquiring an additional 51 shares during the last quarter. Finally, Sawyer & Company Inc bought a new position in Advanced Micro Devices during the 3rd quarter worth approximately $37,000. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD Ventures and Nvidia participated in funding for Hark, an AI startup valued at $6 billion that is developing a personal assistant to compete with Grok. The investment highlights AMD’s strategic involvement in the expanding AI ecosystem. Nvidia and AMD Are Backing a $6 Billion AI Startup Taking on Grok
• Positive Sentiment: AMD is expected to report third-quarter results after the market closes on November 3. Zacks’ Earnings ESP points to another earnings beat, while some analysts continue to rate the stock a Buy ahead of the report. AMD Threatens False Breakout Ahead of Earnings
• Positive Sentiment: Tiger Global reportedly initiated a roughly $392 million AMD position, signaling institutional confidence, although ARK Invest reduced its AMD stake by 48% in the second quarter. A $24 Billion Hedge Fund Bought Advanced Micro Devices. Cathie Wood Cut Her Stake 48%. Who’s Right?
• Neutral Sentiment: Analysts are divided ahead of earnings: one highly rated analyst recommends holding AMD, while another recommends buying it. Options trading suggests investors expect significant volatility around the report. AMD Q3 Earnings Tomorrow: One Five-Star Analyst Says Hold, Another Says Buy
• Negative Sentiment: Market commentator Tom Sosnoff said AMD and other leading AI-chip stocks may need to fall another 25%–35% before becoming compelling oversold opportunities, reinforcing concerns that valuations remain stretched. AMD, Micron Selloff Is Just the Beginning
• Negative Sentiment: Melius reduced its AMD price target while citing AI financing risks and pressured semiconductor valuations, even as it maintained a positive view on parts of the sector. Nvidia, AMD, Marvell Targets Cut
• Negative Sentiment: Options data indicates AMD could decline following earnings, while investors remain concerned about PC demand and whether AI growth can justify the stock’s very high earnings multiple. Ahead of Advanced Micro Devices Earnings

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD's product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.

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.