Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.8% After Analyst Upgrade

Key Points

• AMD shares rose 2.8% to $649.42 after Mizuho raised its price target from $580 to $705 while maintaining an outperform rating.
• Analyst sentiment remains broadly positive, with 35 of 46 analysts rating AMD Buy or Strong Buy and a consensus target of $576.88; several firms have recently increased their targets based on expectations for AI and data-center growth.
• AMD trades at a roughly $1.06 trillion market capitalization and a P/E ratio near 167, while insiders have sold about $105.5 million of stock over the past three months, highlighting valuation and execution risks despite strong momentum.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares shot up 2.8% on Tuesday after Mizuho raised their price target on the stock from $580.00 to $705.00. Mizuho currently has an outperform rating on the stock. Advanced Micro Devices traded as high as $658.52 and last traded at $649.42. 24,107,217 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 32,723,076 shares. The stock had previously closed at $631.75.

AMD has been the subject of several other research reports. Benchmark increased their price objective on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. DA Davidson upped their target price on Advanced Micro Devices from $425.00 to $550.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Bank of America lifted their price target on Advanced Micro Devices from $620.00 to $720.00 and gave the stock a "buy" rating in a report on Friday, September 25th. Finally, KeyCorp set a $650.00 price objective on Advanced Micro Devices in a research report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $576.88.

Insider Buying and Selling

In related news, SVP Ava Hahn sold 2,993 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total value of $1,462,649.17. Following the transaction, the senior vice president owned 26,623 shares in the company, valued at approximately $13,010,393.87. This represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 25,000 shares of the stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total value of $12,669,750.00. Following the transaction, the chief executive officer directly owned 74,211 shares of the company's stock, valued at approximately $37,609,392.69. This trade represents a 25.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 213,838 shares of company stock worth $105,533,836 in the last three months. Insiders own 0.50% of the company's stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: CEO Lisa Su said AMD expects AI-chip demand to remain “very, very high” for years and plans to substantially increase supply in 2027 by securing additional wafer and memory capacity. The comments support expectations for faster data-center and AI revenue growth. AMD plans to substantially increase supply in 2027, CEO says
• Positive Sentiment: Citigroup raised its AMD price target to $800 from $575 while maintaining a Buy rating, citing the potential for AI agents such as Meta’s Muse to increase computing, memory and networking requirements. Citi also expects the CPU market to reach $300 billion by 2030. Citigroup adjusts price target on AMD
• Positive Sentiment: Other analysts also boosted their outlooks: Mizuho raised its target to $705, Stifel to $700 and BNP Paribas to $960. The revisions reflect confidence in AMD’s EPYC server CPUs, future AI accelerators and an expected third-quarter “beat-and-raise” result. AMD spikes as analysts raise targets
• Positive Sentiment: Investor enthusiasm is broadening beyond traditional AI training toward agentic and inference workloads. Coverage argues that always-on AI agents could require substantially more CPUs and infrastructure, potentially improving AMD’s competitive position relative to Nvidia. Meta Muse gives AMD a boost
• Neutral Sentiment: AMD’s shares have reached record levels after a very large annual rally, and analyst targets remain widely dispersed. This indicates strong momentum but also substantial uncertainty around execution, competition and the sustainability of AI spending. AMD stock reaches new all-time highs
• Negative Sentiment: At roughly a $1 trillion valuation, AMD trades at an elevated earnings multiple. Any delays in increasing supply, weaker AI demand or disappointment in upcoming results could trigger a sharp pullback. Potential future share issuance tied to customer agreements with OpenAI and Meta is an additional dilution risk.

Institutional Investors Weigh In On Advanced Micro Devices

Several large investors have recently added to or reduced their stakes in the company. JNBA Financial Advisors increased its stake in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Bullseye Investment Management LLC bought a new position in Advanced Micro Devices in the 2nd quarter worth approximately $44,000. Luminist Capital LLC purchased a new position in Advanced Micro Devices in the 2nd quarter valued at approximately $46,000. BOK Financial Private Wealth Inc. purchased a new position in Advanced Micro Devices in the 2nd quarter valued at approximately $53,000. Finally, Toews Corp ADV bought a new stake in Advanced Micro Devices during the 2nd quarter valued at $66,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Price Performance

The firm has a market cap of $1.06 trillion, a P/E ratio of 166.95, a PEG ratio of 6.58 and a beta of 2.45. The business's fifty day simple moving average is $515.38 and its 200-day simple moving average is $449.17. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping 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 return on equity of 12.30% and a net margin of 15.58%.The business's revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the company earned $0.48 earnings per share. As a group, analysts forecast that Advanced Micro Devices, Inc. will post 6.43 EPS for the current fiscal 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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