Advanced Micro Devices, Inc. (NASDAQ:AMD) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts broadly favor AMD: Forty-three firms give the stock a consensus “Moderate Buy” rating, including 31 buys and three strong buys. The average 12-month price target is $606.76.
• 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.
• Valuation and execution remain risks: Shares trade at a high price-to-earnings ratio of 132.85, while investors are watching whether AI accelerator demand and new products can justify expectations amid competition from Nvidia and broader semiconductor volatility.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the forty-three research firms that are covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation, thirty-one have issued a buy recommendation and three have given a strong buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $606.76.

Several equities research analysts have issued reports on AMD shares. Jefferies Financial Group set a $650.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Robert W. Baird set a $1,250.00 target price on shares of Advanced Micro Devices in a research note on Friday, July 24th. JPMorgan Chase & Co. raised 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. Raymond James Financial raised shares of Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and lifted their price target for the company from $565.00 to $641.00 in a research note on Tuesday, August 25th. Finally, Argus lifted their price target on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the company a "buy" rating in a research note on Thursday, August 6th.

Advanced Micro Devices Stock Performance

AMD stock opened at $516.79 on Friday. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The business's fifty day simple moving average is $541.54 and its two-hundred day simple moving average is $483.45. Advanced Micro Devices has a twelve month low of $188.22 and a twelve month high of $658.52. The firm has a market cap of $843.65 billion, a price-to-earnings ratio of 132.85, a PEG ratio of 5.21 and a beta of 2.45.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.62 by $0.04. The firm had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business's revenue was up 50.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.48 earnings per share. Analysts predict that Advanced Micro Devices will post 6.50 earnings per share for the current year.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of Advanced Micro Devices stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the sale, the executive vice president directly owned 160,979 shares of the company's stock, valued at $76,316,924.32. The trade was a 8.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. 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 value of $35,476,000.00. Following the completion of the sale, the chief executive officer owned 3,032,156 shares of the company's stock, valued at $1,536,696,660.80. This represents a 2.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 231,100 shares of company stock valued at $114,867,400 over the last 90 days. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors have recently made changes to their positions in the company. Bank of America Corp DE purchased a new stake in shares of Advanced Micro Devices during the 2nd quarter worth $7,022,226,000. BlackRock Inc. boosted its position in Advanced Micro Devices by 3.1% during 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 in the last quarter. Jupiter Topco LLC purchased a new position in Advanced Micro Devices in the second quarter valued at about $2,084,651,000. Wellington Management Group LLP grew its stake in Advanced Micro Devices by 33.9% in the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer's stock valued at $5,422,444,000 after purchasing an additional 2,365,419 shares during the last quarter. Finally, State Street Corp grew its stake 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 purchasing an additional 2,149,563 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Analyst support is helping sentiment. AMD received an analyst upgrade, while Erste Group raised its FY2027 earnings estimate to $15.05 per share from $14.80. The company’s long-term earnings outlook is being supported by expectations for continued AI accelerator demand. AMD Stock Jumps Following Analyst Upgrade
• Positive Sentiment: AI growth remains the core bullish argument. Articles point to AMD’s hyperscaler contracts, data-center expansion and expected product cycles as potential drivers of substantial future revenue growth. AMD recently reported 50.1% year-over-year revenue growth, and analysts continue to debate whether its AI opportunity is being underestimated. AMD’s Potential May Be Underestimated
• Neutral Sentiment: Today’s strength follows a broad technology rebound. AMD and Intel recovered after a sharp semiconductor sell-off, while AMD also contributed to gains in the Invesco QQQ Trust. This suggests some of the buying reflects sector rotation and short-term dip buying rather than a change in AMD’s fundamentals. Why AMD and Intel Stocks Are Gaining
• Negative Sentiment: Valuation and execution risks remain significant. AMD has already risen sharply this year, and its high earnings multiple leaves little room for disappointment. Investors are focused on whether upcoming earnings and new AI products can validate the expectations embedded in the stock. AMD Stock Price Prediction
• Negative Sentiment: Competitive and macroeconomic pressures could limit upside. Nvidia is expanding into CPU systems traditionally dominated by AMD and Intel, while higher oil prices, interest rates and questions about AI infrastructure spending are weighing on the broader semiconductor trade. Nvidia Enters the CPU Market

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD's product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.

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