Advanced Micro Devices, Inc. (NASDAQ:AMD) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is moderately bullish: AMD has a “Moderate Buy” consensus from 46 analysts, including 32 buys and three strong buys, with an average 12-month price target of $553.72.
• Recent results exceeded expectations: AMD reported quarterly EPS of $1.66 versus the $1.62 consensus and revenue of $11.54 billion, up 50.1% year over year.
• AI growth optimism faces valuation and competitive risks: AMD is expanding its data-center and AI infrastructure presence, but its high P/E ratio of 117.26, insider selling and some analyst downgrades indicate concerns that substantial AI growth may already be priced in.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the forty-six ratings firms that are currently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, ten have given a hold recommendation, thirty-two have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $553.7179.

Several brokerages recently weighed in on AMD. Stifel Nicolaus increased their target price on Advanced Micro Devices from $450.00 to $635.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Wolfe Research set a $450.00 price target on Advanced Micro Devices and gave the stock an "outperform" rating in a research report on Monday, June 15th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Advanced Micro Devices in a report on Monday, August 3rd. Barclays cut Advanced Micro Devices from an "overweight" rating to an "underweight" rating in a research report on Friday, June 12th. Finally, Wall Street Zen upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th.

Insider Transactions at Advanced Micro Devices

In other news, EVP Forrest Norrod sold 17,261 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $459.95, for a total transaction of $7,939,196.95. Following the transaction, the executive vice president owned 373,317 shares in the company, valued at approximately $171,707,154.15. The trade was a 4.42% decrease in their position. The transaction was disclosed in a document filed 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, SVP Ava Hahn sold 2,993 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the transaction, the senior vice president directly owned 26,623 shares of the company's stock, valued at $13,010,393.87. This represents a 10.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 232,577 shares of company stock worth $109,509,170. 0.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Brighton Jones LLC boosted its stake in Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after buying an additional 29,438 shares in the last quarter. Revolve Wealth Partners LLC raised its stake in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock valued at $1,001,000 after buying an additional 234 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Advanced Micro Devices by 125.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock worth $758,000 after acquiring an additional 2,970 shares during the period. United Bank boosted its position in shares of Advanced Micro Devices by 22.0% during the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock valued at $1,881,000 after acquiring an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its position in shares of Advanced Micro Devices by 361.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock valued at $1,310,000 after acquiring an additional 7,228 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD’s role in AI infrastructure continues to expand. The company is contributing to the Linux Foundation’s TRACE project for verifiable AI governance, while Anjuna’s confidential-computing platform uses AMD Secure Encrypted Virtualization. These developments support AMD’s position in secure cloud and data-center AI. Why Is AMD Becoming More Important in Secure AI Infrastructure?
• Positive Sentiment: AMD is participating in ASUS’s expanded AI infrastructure ecosystem alongside Intel and other technology partners, potentially broadening its exposure to cloud, edge and enterprise AI deployments. ASUS Expands AI Infrastructure Ecosystem from Cloud to Edge
• Positive Sentiment: Analysts and commentators continue to point to AMD’s data-center momentum, server-CPU opportunity and planned Saudi AI buildout with HUMAIN, which targets 250 megawatts from 2027 and as much as 1 gigawatt by 2030. Can AMD’s Saudi AI Buildout Challenge NVIDIA and Broadcom?
• Neutral Sentiment: Institutional positioning is mixed: Tiger Global recently opened an AMD position, while Stanley Druckenmiller reportedly selected AMD as an AI-chip challenger rather than buying Nvidia. These moves provide some validation but do not establish a near-term earnings catalyst.
• Negative Sentiment: ARK Invest disclosed sales of approximately $72.8 million of AMD shares while purchasing about $53 million of Nvidia stock. Additional reports say ARK has continued trimming AMD, reinforcing concerns that some investors prefer Nvidia’s growth and valuation profile. Cathie Wood Sold AMD and Bought Nvidia
• Negative Sentiment: AMD was downgraded by Zacks Research from “strong buy” to “hold.” Other commentary argues the stock’s sharp 2026 advance has already priced in substantial AI success; its high earnings multiple leaves less room for execution delays or disappointing guidance. Prediction: Nvidia Stock Will Outperform AMD Through 2028
• Negative Sentiment: Semiconductor shares remain vulnerable to higher interest rates, rising oil prices and Treasury yields. Broadcom’s softer guidance and margin concerns also weighed on the chip sector, while comparisons suggest Nvidia is growing faster and may offer a more attractive risk-reward profile. Broadcom Falls as Soft Guidance Overshadows AI Revenue Growth

Advanced Micro Devices Price Performance

NASDAQ AMD opened at $456.16 on Friday. Advanced Micro Devices has a 1 year low of $149.22 and a 1 year high of $584.73. The company has a fifty day simple moving average of $500.08 and a 200 day simple moving average of $392.68. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a market cap of $744.67 billion, a P/E ratio of 117.26, a P/E/G ratio of 4.73 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the previous year, the business earned $0.48 EPS. The business's revenue was up 50.1% on a year-over-year basis. On average, sell-side analysts predict that Advanced Micro Devices will post 6.44 EPS for the current year.

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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