Advanced Micro Devices (NASDAQ:AMD) Releases Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• AMD reported quarterly EPS of $2.09, beating analyst estimates of $1.95 by $0.14; revenue of $13.38 billion also exceeded expectations of $13.10 billion.
• Shares rose 3.7% to $483.90 in Tuesday trading. Investors are watching AI demand, the Helios systems ramp, and fourth-quarter guidance, amid concerns about valuation and whether AI investments will drive growth quickly enough.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $608.78. Recent research notes range from raised targets and Buy ratings to a Zacks downgrade to Hold.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) announced its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $2.09 earnings per share for the quarter, beating analysts' consensus estimates of $1.95 by $0.14, FiscalAI reports. The company had revenue of $13.38 billion for the quarter, compared to analysts' expectations of $13.10 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.

Advanced Micro Devices Trading Up 3.7%

Shares of Advanced Micro Devices stock traded up $17.06 during trading on Tuesday, reaching $483.90. 29,259,319 shares of the stock were exchanged, compared to its average volume of 31,645,783. 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 firm has a market cap of $789.95 billion, a price-to-earnings ratio of 124.40, a price-to-earnings-growth ratio of 5.94 and a beta of 2.45. Advanced Micro Devices has a 1 year low of $188.22 and a 1 year high of $658.52. The stock's fifty day moving average is $548.16 and its 200 day moving average is $410.43.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: A broader bounce in semiconductor stocks is supporting AMD after a sharp sector selloff. Article: AMD Advances as Chip Stocks Bounce Ahead of Earnings
• Positive Sentiment: Reports of a possible RDNA 5+ graphics architecture reaching AMD’s APUs in 2029 have added speculative product excitement, though the timeline is not confirmed. Article: AMD Stock Rallies on Reports of RDNA 5+ Hitting APUs in 2029
• Neutral Sentiment: Investors are focused on AI demand, the Helios systems ramp and fourth-quarter guidance. Options markets imply a sizable post-earnings move—about 7%—so results or outlook could quickly change sentiment. Article: AMD Expected to Move 7% Following Earnings
• Negative Sentiment: Risks remain after a steep recent selloff: investors are questioning whether AI commitments can translate into growth quickly enough, while PC-demand concerns and AMD’s rich valuation heighten the stakes for its outlook. Article: AMD Fell 16% in a Month Before Earnings

Analysts Set New Price Targets

AMD has been the subject of several research reports. Benchmark upped their target price on Advanced Micro Devices from $485.00 to $685.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. UBS Group reissued an "overweight" rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. JPMorgan Chase & Co. boosted their price objective on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Susquehanna upped their price objective on shares of Advanced Micro Devices from $620.00 to $650.00 and gave the company a "positive" rating in a research note on Wednesday, October 28th. Finally, Zacks Research lowered Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 1st. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $608.78.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa Su sold 70,000 shares of the company's stock in a transaction that occurred 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 completion of the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares of the company's stock, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their position. 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 worth $114,867,400 over the last 90 days. 0.50% of the stock is owned by insiders.

Advanced Micro Devices Company Profile

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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