Bank of America Issues Positive Forecast for Advanced Micro Devices (NASDAQ:AMD) Stock Price

Key Points

• Bank of America raised its AMD price target to $720 from $620 and maintained a “buy” rating, implying 14.42% upside from the prior close.
• Analyst sentiment is broadly positive: AMD has an average “Moderate Buy” rating and a consensus price target of $567.62, while recent firms including Raymond James and Roth Capital also raised their targets.
• AMD reported strong quarterly results, with revenue up 50.1% year over year and earnings of $1.66 per share beating estimates; however, the stock’s high valuation and recent insider selling present potential risks.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its target price boosted by equities researchers at Bank of America from $620.00 to $720.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor manufacturer's stock. Bank of America's price objective indicates a potential upside of 14.42% from the stock's previous close.

Several other equities research analysts have also recently issued reports on the stock. Raymond James Financial raised shares of Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and raised their target price for the stock from $565.00 to $641.00 in a research report on Tuesday, August 25th. Citigroup raised shares of Advanced Micro Devices from a "market perform" rating to a "buy" rating in a research report on Wednesday, July 22nd. JPMorgan Chase & Co. lifted their price target on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Wall Street Zen raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Finally, Roth Capital lifted their target price on Advanced Micro Devices from $500.00 to $650.00 and gave the company a "buy" rating in a report on Friday, July 24th. Three 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 given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $567.62.

Advanced Micro Devices Stock Performance

Shares of AMD opened at $629.26 on Friday. 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 has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 161.76, a PEG ratio of 6.47 and a beta of 2.48. The company's 50 day simple moving average is $501.65 and its 200 day simple moving average is $428.43. Advanced Micro Devices has a 1 year low of $154.78 and a 1 year high of $630.80.

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 for the quarter, beating the consensus estimate 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 company had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the previous year, the firm posted $0.48 EPS. Advanced Micro Devices's revenue was up 50.1% on a year-over-year basis. On average, sell-side analysts predict that Advanced Micro Devices will post 6.43 EPS for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 25,000 shares of the company's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total value of $12,669,750.00. Following the transaction, the chief executive officer owned 74,211 shares of the company's stock, valued at approximately $37,609,392.69. This represents a 25.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares of the company's stock, valued at $595,245,602.07. This trade represents a 2.23% 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. Over the last three months, insiders sold 213,838 shares of company stock worth $105,533,836. Company insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently modified their holdings of the stock. QRG Capital Management Inc. lifted its stake in Advanced Micro Devices by 15.7% during the second quarter. QRG Capital Management Inc. now owns 287,822 shares of the semiconductor manufacturer's stock valued at $168,236,000 after buying an additional 38,976 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in shares of Advanced Micro Devices by 37.5% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 22,826 shares of the semiconductor manufacturer's stock valued at $13,445,000 after acquiring an additional 6,227 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake 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 period. State Street Corp boosted its stake 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 period. Finally, Altar Rock LLC purchased a new position in shares of Advanced Micro Devices during the second quarter valued at $405,000. 71.34% of the stock is owned by institutional investors and hedge funds.

More Advanced Micro Devices News

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

• Positive Sentiment: Technical breakout supports momentum. AMD moved above key resistance and reached fresh highs, prompting one analyst to suggest the stock could advance toward $750 as AI demand strengthens. A separate technical analysis described the breakout as potentially signaling a much larger move. AMD’s AI-Fueled Breakout Could Carry Stock to $750, Analyst Says
• Positive Sentiment: AI and CPU demand remain the central catalyst. Market coverage points to growing demand for AMD’s data-center products, MI450 deployments and the Helios architecture. CEO Lisa Su also indicated that mainstream agentic AI could create a new wave of CPU demand, while optimism surrounding Meta’s AI initiatives is benefiting chipmakers. CPUs Are Hot Again: AMD’s Lisa Su Says the Real Demand Wave Hasn’t Even Started
• Positive Sentiment: AMD’s market-cap milestone is reinforcing its re-rating. The company recently entered the $1 trillion market-cap club, reflecting investor confidence that AMD is becoming a credible Nvidia alternative in GPUs and broader AI infrastructure. Taiwan’s record chip exports also support the sector-wide demand narrative. Advanced Micro Devices reaches $1T market cap amid AI boom
• Neutral Sentiment: Relative valuation is a key investor debate. Comparisons with Nvidia highlight AMD’s rapid 2026 appreciation and expanding market value, but also show that AMD trades at a substantially richer forward earnings multiple. The rally has made the stock more sensitive to earnings, product launches and AI adoption.
• Negative Sentiment: High expectations create downside risk. Commentators warn that AMD has become expensive and that AI spending could eventually produce weaker returns. Rising Treasury yields and profit-taking have previously pressured the shares, underscoring the risk that any slowdown in AI deployments or execution could trigger a sharp pullback. AMD Investors Must Pay Attention to This Huge Warning Sign

Advanced Micro Devices Company Profile

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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