Advanced Micro Devices (NASDAQ:AMD) Stock Keeps Buy Rating at Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed a “Buy” rating on AMD with a $700 price target, implying 15.16% upside from the prior close. Analysts overall assign AMD a “Moderate Buy” consensus rating with an average target of $567.63.
• AMD exceeded quarterly expectations, reporting $1.66 in EPS versus the $1.62 consensus estimate and $11.54 billion in revenue versus $11.31 billion expected. Revenue increased 50.1% year over year.
• Insiders sold shares while institutional ownership remained high: executives sold $105.5 million of stock during the last quarter, while institutional investors and hedge funds owned 71.34% of AMD.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report)'s stock had its "buy" rating reaffirmed by analysts at Rosenblatt Securities in a research note issued to investors on Tuesday, Benzinga reports. They currently have a $700.00 price target on the semiconductor manufacturer's stock. Rosenblatt Securities' target price suggests a potential upside of 15.16% from the stock's previous close.

AMD has been the topic of several other reports. BMO Capital Markets initiated coverage on Advanced Micro Devices in a report on Thursday, August 20th. They set an "outperform" rating and a $550.00 target price on the stock. Wedbush reaffirmed an "outperform" rating and issued a $600.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Raymond James Financial raised shares of Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and upped their price objective for the stock from $565.00 to $641.00 in a research report on Tuesday, August 25th. Robert W. Baird set a $1,250.00 target price on shares of Advanced Micro Devices in a report on Friday, July 24th. Finally, Wells Fargo & Company boosted their target price on shares of Advanced Micro Devices from $615.00 to $700.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $567.63.

Advanced Micro Devices Trading Down 3.6%

AMD stock opened at $607.87 on Tuesday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The company's 50-day simple moving average is $506.44 and its 200 day simple moving average is $434.30. Advanced Micro Devices has a 52 week low of $159.33 and a 52 week high of $639.00. The company has a market capitalization of $992.33 billion, a PE ratio of 156.26, a price-to-earnings-growth ratio of 6.54 and a beta of 2.48.

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

Insider Buying and Selling

In related news, EVP Jean X. Hu sold 15,000 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the transaction, the executive vice president directly owned 160,979 shares in the company, valued at $76,316,924.32. This represents a 8.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,261 shares of the firm's 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 sale, the executive vice president owned 363,317 shares in the company, valued at $182,766,616.85. This represents a 4.54% decrease in their position. 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 sold a total of 213,838 shares of company stock worth $105,533,836 in the last quarter. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently bought and sold shares of the company. Southpoint Capital Advisors LP raised its holdings in Advanced Micro Devices by 50.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer's stock worth $183,087,000 after purchasing an additional 300,000 shares in the last quarter. Boomfish Wealth Group LLC bought a new stake in shares of Advanced Micro Devices during the 1st quarter valued at about $1,193,000. Dimensional Fund Advisors LP increased its position in shares of Advanced Micro Devices by 6.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer's stock valued at $1,045,954,000 after buying an additional 291,165 shares during the period. Lord Abbett & CO. LLC bought a new position in Advanced Micro Devices in the fourth quarter worth about $100,834,000. Finally, Nan Shan Life Insurance Co. Ltd. raised its stake in Advanced Micro Devices by 1,288.6% in the second quarter. Nan Shan Life Insurance Co. Ltd. now owns 220,170 shares of the semiconductor manufacturer's stock worth $127,899,000 after buying an additional 204,315 shares in the last quarter. Institutional investors and hedge funds 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: $8.2 billion World Labs acquisition strengthens AMD’s AI strategy. AMD agreed to acquire the AI research company in an all-stock transaction, adding spatial-intelligence and 3D world-model expertise relevant to robotics, physical AI and future AI infrastructure. Founder Fei-Fei Li will join AMD as executive vice president and chief scientist, potentially improving the company’s ability to compete with Nvidia in AI systems. AMD to acquire Fei-Fei Li's World Labs in $8.2 billion deal
• Positive Sentiment: Rosenblatt reaffirmed its “Buy” rating and set a $700 price target. The target implies additional upside from the quoted market price, reflecting continued confidence in AMD’s AI accelerator, CPU and agentic-AI opportunities. Jim Cramer also argued that rising demand for CPUs serving agentic AI workloads could extend AMD’s recent momentum. Jim Cramer Says AMD's Incredible Run Isn't Over
• Neutral Sentiment: Sector sentiment remains tied to the AI infrastructure outlook. Semiconductor shares have attracted renewed interest as investors assess whether AI spending will broaden from model training into inference, networking and physical AI. However, reports that OpenAI halted a new model over safety concerns have raised questions about the pace and composition of future AI compute demand.
• Negative Sentiment: AMD’s valuation leaves the stock vulnerable to profit-taking. After a powerful rally and a brief move above a $1 trillion market capitalization, AMD trades at elevated valuation multiples. Higher Treasury yields, oil prices and concerns about a potential slowdown in AI spending can pressure high-growth semiconductor stocks.
• Negative Sentiment: The all-stock deal may dilute shareholders, while insider selling is a watchpoint. Although the acquisition preserves AMD’s cash, issuing shares to fund the transaction could reduce existing shareholders’ ownership percentage. Separately, reported insider transactions show substantial selling by executives, including CEO Lisa Su, which may reinforce investor caution at elevated prices.

About Advanced Micro Devices

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

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