Advanced Micro Devices, Inc. (NASDAQ:AMD) Stock Has Average Target Price of $567.62 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: 33 of 47 analysts rate AMD a buy and three rate it a strong buy, producing a “Moderate Buy” consensus and an average 12-month price target of $567.62.
• AMD’s AI strategy is expanding: The company agreed to acquire World Labs for approximately $8.2 billion in an all-stock deal, gaining AI research and “world model” capabilities while taking on dilution and integration risks.
• Valuation and trading risks remain elevated: AMD shares opened at $607.87 after a major AI-driven rally, with a P/E ratio of 156.26; insiders have sold more than $105 million of stock over the past 90 days, while competition and cooling AI-sector sentiment could pressure the shares.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) has earned an average rating of "Moderate Buy" from the forty-seven ratings firms that are currently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, ten have assigned a hold recommendation, thirty-three have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $567.62.

A number of equities analysts have recently commented on the company. Jefferies Financial Group set a $650.00 price objective on Advanced Micro Devices in a report on Wednesday, August 5th. JPMorgan Chase & Co. increased their target price on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. TD Cowen restated a "buy" rating on shares of Advanced Micro Devices in a report on Wednesday, August 5th. KeyCorp set a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Zacks Research downgraded shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 1st.

Insiders Place Their Bets

In related news, EVP Forrest Norrod sold 17,261 shares of Advanced Micro Devices stock in a transaction 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 transaction, the executive vice president owned 363,317 shares in the company, valued at approximately $182,766,616.85. The trade was a 4.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 70,000 shares of the company's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the sale, the chief executive officer directly owned 3,032,156 shares of the company's stock, valued at approximately $1,536,696,660.80. This trade represents a 2.26% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of the stock. BlackRock Inc. boosted its stake in shares of Advanced Micro Devices by 3.1% in the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. State Street Corp increased its holdings in Advanced Micro Devices by 2.9% in the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer's stock valued at $46,606,266,000 after buying an additional 2,149,563 shares during the last quarter. Invesco Ltd. increased its holdings in Advanced Micro Devices by 15.9% in the fourth quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer's stock valued at $3,313,758,000 after buying an additional 2,124,867 shares during the last quarter. Bank of America Corp DE acquired a new stake in Advanced Micro Devices during the second quarter valued at approximately $7,022,226,000. Finally, Jennison Associates LLC lifted its holdings in Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer's stock worth $5,793,388,000 after buying an additional 545,575 shares during the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD agreed to acquire World Labs, an AI research company founded by renowned researcher Fei-Fei Li, in an approximately $8.2 billion all-stock transaction. World Labs develops “world models” that understand and generate 3D environments, with applications in physical AI, robotics and simulation. Li will join AMD as executive vice president and chief scientist. The deal gives AMD additional AI research talent and could help it compete more directly with Nvidia in complete AI systems and infrastructure. AMD to acquire Fei-Fei Li’s World Labs in $8.2 billion deal
• Positive Sentiment: The acquisition expands AMD’s exposure beyond chips into AI models, software and robotics, potentially strengthening demand for its CPUs and GPUs as AI inference moves into physical-world and edge applications. Recent commentary also remains optimistic that agentic AI could support demand for AMD’s high-end processors. AMD briefly joined the $1 trillion club
• Neutral Sentiment: Because the transaction is all stock, AMD avoids a significant cash outlay, but issuing shares could dilute existing shareholders. Investors must also assess whether World Labs’ technology can be commercialized and integrated effectively at the deal’s substantial valuation. AMD stock and World Labs deal
• Negative Sentiment: AMD remains vulnerable to profit-taking after a powerful AI-driven rally and a recent move above a $1 trillion market capitalization. Higher Treasury yields and oil prices have pressured richly valued technology stocks, while investors are reconsidering the pace and durability of AI infrastructure spending. AMD slides as chip-sector sentiment cools
• Negative Sentiment: Competition remains intense: commentary highlights Broadcom’s rapidly growing custom-AI-chip business, while local AI agents could shift some inference workloads from cloud providers to personal computers, creating execution pressure for AMD’s AI strategy. AMD’s elevated valuation and reported insider selling add further risk for investors. Broadcom’s custom silicon business

Advanced Micro Devices Stock Down 3.6%

Shares of NASDAQ AMD opened at $607.87 on Tuesday. Advanced Micro Devices has a 52-week low of $159.33 and a 52-week high of $639.00. The firm has a fifty day moving average of $506.44 and a 200-day moving average of $434.30. The stock has a market capitalization of $992.33 billion, a PE ratio of 156.26, a P/E/G ratio of 6.54 and a beta of 2.48. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping 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 business had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same period last year, the company posted $0.48 EPS. The business's quarterly revenue was up 50.1% on a year-over-year basis. On average, analysts anticipate that Advanced Micro Devices will post 6.43 EPS for the current year.

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.

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