Advanced Micro Devices (NASDAQ:AMD) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded AMD from “Buy” to “Hold,” although broader analyst sentiment remains “Moderate Buy,” with an average price target of $567.62.
• AMD reported quarterly EPS of $1.66 versus the $1.62 consensus estimate, while revenue rose 50.1% year over year to $11.54 billion.
• Shares opened at $630.59, near their 52-week high of $639, but the stock’s elevated valuation—including a P/E ratio of 162.11—raises concerns about limited upside despite strong AI-related growth expectations.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also issued reports on the company. DA Davidson upped their target price on Advanced Micro Devices from $425.00 to $550.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Wolfe Research set a $450.00 price target on Advanced Micro Devices and gave the stock an "outperform" rating in a report on Monday, June 15th. Roth Capital upped their price objective on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a "buy" rating in a report on Friday, July 24th. Benchmark boosted their target price on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. Finally, Jefferies Financial Group set a $650.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $567.62.

Advanced Micro Devices Trading Up 0.2%

NASDAQ:AMD opened at $630.59 on Friday. The firm has a 50 day moving average of $504.35 and a 200 day moving average of $429.85. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. Advanced Micro Devices has a 52 week low of $157.05 and a 52 week high of $639.00. The stock has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 162.11, a PEG ratio of 6.53 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly 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. The business had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business's quarterly revenue was up 50.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.48 earnings per share. As a group, sell-side analysts anticipate that Advanced Micro Devices will post 6.43 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, EVP Forrest Norrod sold 17,261 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $503.05, for a total transaction of $8,683,146.05. Following the completion of the transaction, the executive vice president directly owned 363,317 shares of the company's stock, valued at $182,766,616.85. The trade was a 4.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $514.91, for a total transaction 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 position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 213,838 shares of company stock valued at $105,533,836 in the last 90 days. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Institutional investors and hedge funds have recently modified their holdings of the stock. QRG Capital Management Inc. increased its position in Advanced Micro Devices by 15.7% in the 2nd quarter. QRG Capital Management Inc. now owns 287,822 shares of the semiconductor manufacturer's stock valued at $168,236,000 after acquiring an additional 38,976 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its holdings in shares of Advanced Micro Devices by 37.5% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 22,826 shares of the semiconductor manufacturer's stock valued at $13,445,000 after purchasing an additional 6,227 shares in the last quarter. Envestnet Asset Management Inc. raised its position in Advanced Micro Devices by 33.0% in the 2nd quarter. Envestnet Asset Management Inc. now owns 1,038,346 shares of the semiconductor manufacturer's stock worth $649,385,000 after purchasing an additional 257,351 shares during the last quarter. State Street Corp raised its position in Advanced Micro Devices by 2.9% in the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer's stock worth $46,606,266,000 after purchasing an additional 2,149,563 shares during the last quarter. Finally, Altar Rock LLC acquired a new position in Advanced Micro Devices during the 2nd quarter worth $405,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Bank of America raised its price target from $620 to $720 and maintained a Buy rating. The firm believes AMD’s server CPU total addressable market could nearly triple to $211 billion by 2030 as AI agents increase demand for computing infrastructure. BofA raises AMD target to $720
• Positive Sentiment: Perplexity collaboration supports AMD’s PC AI strategy. New tools are designed to make Perplexity’s AI capabilities easier to run locally on Ryzen-powered PCs, reinforcing the potential for edge AI and personal-agent workloads to drive CPU demand. AMD Stock Rises After Introducing New AI Tools from Perplexity
• Positive Sentiment: AI momentum remains the primary catalyst. Analysts and market commentators point to AMD’s EPYC server CPUs, AI accelerators, Helios rack systems, and potential edge-computing demand as avenues for the company to participate in the broader AI infrastructure cycle. Some forecasts reach $750 per share.
• Positive Sentiment: Technical and industry momentum is attracting buyers. AMD broke above key resistance, while rising demand for AI chips and optimism surrounding CPU makers helped lift semiconductor stocks broadly.
• Neutral Sentiment: AMD’s $1 trillion valuation is both a milestone and a test. The company’s roughly 189% year-to-date advance reflects strong investor enthusiasm, but the milestone means future AI deployments, revenue growth, and margins must meet very high expectations.
• Negative Sentiment: Valuation concerns could limit further upside. Commentary highlights AMD’s high forward earnings multiple and argues that Nvidia remains larger, more profitable, and further ahead in shipping full AI systems. Elevated Treasury yields could also pressure richly valued technology stocks.

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.

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