Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 3.2% Following Analyst Upgrade

Key Points

• AMD shares rose 3.2% to about $578 after Susquehanna raised its price target from $620 to $650 and maintained a positive rating.
• Analyst sentiment remains broadly favorable, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $607.57, supported by expectations for strong data-center and AI demand.
• Despite growth optimism and expanded AI partnerships, valuation and supply-chain risks remain; AMD trades at a high P/E ratio, while insiders have sold more than $114 million of stock over the past three months.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price shot up 3.2% on Wednesday after Susquehanna raised their price target on the stock from $620.00 to $650.00. Susquehanna currently has a positive rating on the stock. Advanced Micro Devices traded as high as $579.18 and last traded at $578.44. Approximately 18,355,544 shares traded hands during trading, a decline of 42% from the average daily volume of 31,698,275 shares. The stock had previously closed at $560.26.

A number of other research firms have also recently commented on AMD. TD Cowen restated a "buy" rating on shares of Advanced Micro Devices in a report on Monday, October 19th. Benchmark upped their price objective on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Roth Capital increased their price objective on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. UBS Group restated an "overweight" rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $540.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and an average price target of $607.57.

Insider Activity

In related news, CEO Lisa Su sold 25,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the transaction, the chief executive officer owned 74,211 shares of the company's stock, valued at $37,609,392.69. The trade was a 25.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the company's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares of the company's stock, valued at $76,316,924.32. This trade represents a 8.52% 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. In the last three months, insiders sold 231,100 shares of company stock worth $114,867,400. Company insiders own 0.50% of the company's stock.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Expanded Meta partnership strengthens AI demand visibility. AMD will invest $1 billion in Meta’s equity offering while supplying EPYC processors, Instinct GPUs and Helios rack-scale systems. Initial Helios systems are being tested at Meta, and the companies are targeting infrastructure deployments at gigawatt scale. Meta reportedly has agreements covering as much as 6 gigawatts of AMD GPU capacity. AMD and Meta Advance Strategic Partnership
• Positive Sentiment: Analysts raised price targets ahead of earnings. Susquehanna increased its target to $650 from $620 and maintained a positive rating, while Aletheia Capital raised its target to $800 from $700 with a Buy rating. Analysts cited improving data-center fundamentals, server CPU demand and expanding adoption of AMD’s AI accelerators. Susquehanna Adjusts AMD Price Target
• Positive Sentiment: Sector momentum added support. AMD participated in a broader chip-stock advance after strong results from memory-chip maker SK Hynix, reinforcing expectations that AI infrastructure spending remains robust. Wall Street is forecasting continued revenue and profit growth in AMD’s third-quarter results. Chip Stocks Lead Sector Higher
• Neutral Sentiment: November 3 earnings are the next major catalyst. Investors will focus on data-center and AI revenue, gross margins, supply constraints and management’s outlook. Options markets imply a potentially sizable post-earnings move.
• Negative Sentiment: Valuation and supply-chain risks remain significant. Commentary highlighted AMD’s elevated valuation and argued that its stock may have advanced faster than fundamentals. Potential increases in TSMC’s advanced-packaging and wafer prices could pressure AMD’s margins. In addition, ARK Invest and AMD insiders have continued selling shares, while some investors have questioned whether chip suppliers investing in Meta creates circular-financing risk. TSMC Pricing Power and AI Supply Chain

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently made changes to their positions in AMD. Parcion Private Wealth LLC grew its holdings in shares of Advanced Micro Devices by 13.1% in the third quarter. Parcion Private Wealth LLC now owns 4,294 shares of the semiconductor manufacturer's stock valued at $2,627,000 after acquiring an additional 498 shares in the last quarter. Birinyi Associates Inc. increased its position in shares of Advanced Micro Devices by 13.8% during the third quarter. Birinyi Associates Inc. now owns 1,650 shares of the semiconductor manufacturer's stock valued at $1,009,000 after acquiring an additional 200 shares during the last quarter. Partners Wealth Management LLC increased its position in shares of Advanced Micro Devices by 793.8% during the third quarter. Partners Wealth Management LLC now owns 15,758 shares of the semiconductor manufacturer's stock valued at $9,640,000 after acquiring an additional 13,995 shares during the last quarter. Blueprint Investment Partners LLC bought a new stake in Advanced Micro Devices during the third quarter worth $6,680,000. Finally, Harbour Trust & Investment Management Co lifted its holdings in Advanced Micro Devices by 2.4% during the third quarter. Harbour Trust & Investment Management Co now owns 1,869 shares of the semiconductor manufacturer's stock worth $1,143,000 after acquiring an additional 43 shares during the period. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Stock Up 3.2%

The stock has a fifty day moving average of $543.70 and a 200 day moving average of $404.03. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market capitalization of $944.29 billion, a P/E ratio of 148.70, a price-to-earnings-growth ratio of 5.30 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data 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 the consensus estimate 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 quarter in the prior year, the company earned $0.48 EPS. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 EPS for the current fiscal year.

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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