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

Key Points

• Bank of America raised its price target on AMD from $450 to $500 and kept a buy rating, implying about 11.9% upside from the prior close.
• AMD’s latest quarterly results beat expectations, with EPS of $1.37 versus $1.29 expected and revenue of $10.25 billion versus $9.90 billion expected. Revenue also rose 37.8% year over year.
• Analyst sentiment remains broadly positive, with multiple firms lifting targets and the stock carrying an average Moderate Buy rating and average target price of $396.95. Meanwhile, insider selling and some valuation concerns suggest caution after the stock’s strong rally.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price objective boosted by analysts at Bank of America from $450.00 to $500.00 in a report released on Wednesday. The brokerage currently has a "buy" rating on the semiconductor manufacturer's stock. Bank of America's price target would suggest a potential upside of 11.88% from the stock's previous close.

AMD has been the topic of a number of other research reports. Needham & Company LLC raised Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. China Renaissance assumed coverage on Advanced Micro Devices in a report on Tuesday, January 13th. They set a "buy" rating and a $291.00 price target on the stock. Truist Financial set a $478.00 price objective on Advanced Micro Devices in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price objective on Advanced Micro Devices from $270.00 to $385.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Finally, Royal Bank Of Canada lifted their price objective on Advanced Micro Devices from $325.00 to $400.00 and gave the company a "sector perform" rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $396.95.

Advanced Micro Devices Stock Performance

Shares of NASDAQ AMD traded down $1.40 during midday trading on Wednesday, reaching $446.89. 14,795,431 shares of the company were exchanged, compared to its average volume of 39,580,070. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. Advanced Micro Devices has a 1 year low of $107.67 and a 1 year high of $469.21. The stock has a fifty day simple moving average of $258.93 and a 200 day simple moving average of $236.36. The stock has a market cap of $728.70 billion, a P/E ratio of 146.54, a PEG ratio of 1.41 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. During the same quarter last year, the company posted $0.96 earnings per share. The business's revenue was up 37.8% on a year-over-year basis. On average, research analysts forecast that Advanced Micro Devices will post 5.99 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Lisa T. Su sold 85,000 shares of the company's stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $198.77, for a total value of $16,895,450.00. Following the completion of the sale, the chief executive officer owned 3,146,006 shares in the company, valued at approximately $625,331,612.62. This represents a 2.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Paul Darren Grasby sold 24,376 shares of the company's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president owned 105,222 shares of the company's stock, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 184,598 shares of company stock worth $49,955,566 over the last quarter. 0.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently made changes to their positions in AMD. Impax Asset Management Group plc increased its holdings in shares of Advanced Micro Devices by 326.5% during the 3rd quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer's stock worth $8,424,000 after purchasing an additional 39,861 shares during the period. Zweig DiMenna Associates LLC increased its holdings in shares of Advanced Micro Devices by 127.6% during the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer's stock worth $11,746,000 after purchasing an additional 40,708 shares during the period. Wedbush Securities Inc. boosted its position in shares of Advanced Micro Devices by 7.8% during the 3rd quarter. Wedbush Securities Inc. now owns 84,256 shares of the semiconductor manufacturer's stock valued at $13,632,000 after acquiring an additional 6,095 shares in the last quarter. Highline Wealth Partners LLC boosted its position in Advanced Micro Devices by 4,891.6% in the fourth quarter. Highline Wealth Partners LLC now owns 8,286 shares of the semiconductor manufacturer's stock valued at $1,775,000 after buying an additional 8,120 shares in the last quarter. Finally, William Blair Investment Management LLC lifted its position in shares of Advanced Micro Devices by 72.5% during the third quarter. William Blair Investment Management LLC now owns 1,047,200 shares of the semiconductor manufacturer's stock worth $169,426,000 after purchasing an additional 440,296 shares in the last quarter. Hedge funds and other 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: Mizuho raised its price target on AMD to $515 from $415 and kept an Outperform rating, citing agentic AI server demand as a key tailwind. Mizuho Just Hiked AMD Price Target to $515: Agentic AI Server Demand Powers the Bull Case
• Positive Sentiment: Other analysts also boosted earnings estimates after AMD’s Q1 beat, reinforcing expectations for continued growth into 2026 and 2027.
• Positive Sentiment: Commentary highlighted AMD’s expanding role in enterprise AI infrastructure, including long-term AI chip deals and stronger CPU demand in data centers. AMD MI450 AI Deals With Meta And OpenAI Test Rich Valuation
• Neutral Sentiment: Northland Securities lifted several forward earnings estimates for AMD but kept only a Market Perform rating and a $260 target, showing valuation concerns still exist.
• Negative Sentiment: Some reports said the broader chip rally cooled as investors took profits after a sharp run-up, which can pressure AMD along with other semiconductor stocks.
• Negative Sentiment: Insider selling and Cathie Wood’s recent AMD trims are adding a cautious note after the stock’s huge rally.

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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