Advanced Micro Devices (NASDAQ:AMD) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded AMD from “hold” to “buy,” joining a broader positive analyst consensus. AMD has a “Moderate Buy” rating and an average price target of $553.72.
• AMD reported strong quarterly results, with EPS of $1.66 exceeding estimates and revenue rising 50.1% year over year to $11.54 billion. Shares nevertheless fell 2.3% to $465.58, amid a high valuation and ongoing volatility.
• Investor sentiment remains mixed: AI demand and AMD’s product roadmap support growth, while potential semiconductor tariffs, competitive pressure from Nvidia and Broadcom, and recent insider and institutional selling present risks.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

A number of other research firms also recently commented on AMD. Stifel Nicolaus boosted their target price on Advanced Micro Devices from $450.00 to $635.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Loop Capital upgraded shares of Advanced Micro Devices to a "strong-buy" rating in a report on Tuesday, June 16th. Citigroup raised shares of Advanced Micro Devices from a "market perform" rating to a "buy" rating in a report on Wednesday, July 22nd. TD Cowen reiterated a "buy" rating on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Wedbush reissued an "outperform" rating and set a $600.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $553.72.

Advanced Micro Devices Stock Down 2.3%

Advanced Micro Devices stock traded down $11.09 during mid-day trading on Friday, hitting $465.58. The company had a trading volume of 15,303,848 shares, compared to its average volume of 22,999,400. The company has a market capitalization of $760.05 billion, a PE ratio of 119.69 and a beta of 2.48. The stock's 50 day moving average price is $505.66 and its two-hundred day moving average price is $384.43. Advanced Micro Devices has a 12 month low of $149.22 and a 12 month high of $584.73. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion during 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%.Advanced Micro Devices's revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the company earned $0.48 EPS. As a group, sell-side analysts anticipate that Advanced Micro Devices will post 6.44 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares in the company, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 17,261 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $459.95, for a total value of $7,939,196.95. Following the sale, the executive vice president directly owned 373,317 shares of the company's stock, valued at $171,707,154.15. This represents a 4.42% 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. In the last 90 days, insiders have sold 241,203 shares of company stock valued at $114,011,942. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in AMD. Cornerstone Financial Management LLC increased its position in shares of Advanced Micro Devices by 76.6% during the second quarter. Cornerstone Financial Management LLC now owns 256 shares of the semiconductor manufacturer's stock worth $149,000 after acquiring an additional 111 shares during the period. Formuepleje A S bought a new position in Advanced Micro Devices in the second quarter worth approximately $4,873,000. Tucker Asset Management LLC bought a new position in Advanced Micro Devices in the second quarter worth approximately $462,000. HORAN Wealth LLC purchased a new position in shares of Advanced Micro Devices during the second quarter valued at $437,000. Finally, Principia Wealth Advisory LLC increased its position in Advanced Micro Devices by 23.7% during the 2nd quarter. Principia Wealth Advisory LLC now owns 146 shares of the semiconductor manufacturer's stock valued at $85,000 after purchasing an additional 28 shares during the period. Hedge funds and other institutional investors own 71.34% of the company's stock.

More Advanced Micro Devices News

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

• Positive Sentiment: AI demand and product roadmap remain strong: AMD’s previously announced rack-scale platforms and server products are moving closer to deployment, supporting expectations for continued data-center growth. Recent results showed revenue up 50% year over year to $11.54 billion, while management guided to roughly $13 billion in third-quarter revenue. AMD stock ran its published roadmap
• Positive Sentiment: Strategic Nutanix partnership broadens AMD’s AI offering: AMD’s equity investment and joint development agreement with Nutanix could help deliver integrated, open AI inference systems that compete with Nvidia’s software-centric platform. AMD and Nutanix strategic partnership
• Neutral Sentiment: Analyst comparisons favor rivals on risk-reward: Commentary argues Broadcom offers better diversification and a lower valuation, while Nvidia’s stronger profitability, CUDA ecosystem and recent outperformance give it an advantage over AMD. These comparisons may limit enthusiasm despite AMD’s growth prospects. Broadcom versus AMD risk-reward comparison
• Negative Sentiment: Potential tariffs increase cost and supply-chain risk: Reports that the administration may extend semiconductor tariffs to products containing chips, including data-center servers, have raised concerns about higher costs and disrupted hardware supply chains. Why AMD stock is sliding
• Negative Sentiment: Profit-taking and selling activity weigh on sentiment: ARK Invest sold approximately $18 million of AMD shares while reallocating capital to Broadcom and Cerebras. AMD EVP Jean Hu also sold $7.1 million of stock under a pre-arranged Rule 10b5-1 plan, although she retained a substantial position. Cathie Wood sold AMD stock

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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