Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 5.9% - Here's What Happened

Key Points

• AMD shares rose 5.9% to $505.74 during mid-day trading, supported by the company raising its estimated total addressable AI market to approximately $3 trillion by 2030 and by optimism around its Instinct GPUs, EPYC processors and Helios systems.
• AMD’s latest quarter beat expectations, with $11.54 billion in revenue and $1.66 in EPS; revenue increased 50.1% year over year, while an OpenAI GPU relationship and anticipated data-center demand added to the bullish outlook.
• Despite a “Moderate Buy” consensus and a $553.72 average price target, risks include AMD’s high valuation, competition from Broadcom, execution demands for its AI product ramp and recent insider selling.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price rose 5.9% during mid-day trading on Tuesday . The stock traded as high as $512.36 and last traded at $505.74. 27,789,808 shares changed hands during mid-day trading, a decline of 18% from the average session volume of 33,927,504 shares. The stock had previously closed at $477.57.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD raised its estimate for the total addressable AI market to approximately $3 trillion by 2030, up from about $2 trillion previously. The larger opportunity supports the company’s long-term growth narrative. AMD stock jumps 6% as AI market opportunity seen at $3T
• Positive Sentiment: Investor enthusiasm is also being supported by AMD’s AI roadmap, including Instinct GPUs, EPYC server processors and Helios rack-scale systems. Recent coverage highlights an AI workstation designed to run models with as many as 300 billion parameters locally, potentially broadening demand beyond cloud data centers. AMD Just Put 300 Billion-Parameter AI Models on a Desktop
• Positive Sentiment: AMD’s latest reported quarter exceeded expectations, with revenue of $11.54 billion and earnings of $1.66 per share; revenue grew 50.1% year over year. Articles also point to the OpenAI GPU relationship and expectations for accelerating data-center demand as potential catalysts. AMD Has Something Nvidia Doesn’t
• Neutral Sentiment: Institutional positioning appears supportive, with several large investors adding AMD shares in the second quarter. However, this reflects past filings rather than a new announcement and may not indicate current trading intentions.
• Negative Sentiment: Some analysts argue AMD’s AI growth and Helios ramp are already reflected in the stock’s valuation. With a high earnings multiple, the shares may be vulnerable if product launches, margins or demand fail to meet elevated expectations. AMD AI TAM And Helios Ramp Already Priced In
• Negative Sentiment: Broadcom is cited as a competitive threat, while other coverage says Broadcom is growing faster at a lower valuation. AMD insiders have also reported selling shares without recorded purchases over the past six months, a potential cautionary signal.

Analyst Ratings Changes

AMD has been the topic of several analyst reports. Mizuho lifted their target price on Advanced Micro Devices from $615.00 to $625.00 and gave the company an "outperform" rating in a research note on Monday, July 27th. Stifel Nicolaus lifted their price target on Advanced Micro Devices from $450.00 to $635.00 and gave the company a "buy" rating in a research note on Friday, July 10th. BMO Capital Markets assumed coverage on shares of Advanced Micro Devices in a report on Thursday, August 20th. They issued an "outperform" rating and a $550.00 price objective for the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of Advanced Micro Devices in a report on Monday, August 3rd. Finally, KeyCorp set a $650.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and a consensus price target of $553.72.

Advanced Micro Devices Stock Up 5.9%

The stock's 50-day moving average is $497.96 and its 200-day moving average is $396.52. The stock has a market cap of $825.61 billion, a P/E ratio of 130.01, a price-to-earnings-growth ratio of 4.95 and a beta of 2.48. 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 announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. The business 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 firm's revenue was up 50.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.48 EPS. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. The trade was a 2.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the completion of the transaction, the chief executive officer owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This represents a 4.14% 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. In the last quarter, insiders sold 232,577 shares of company stock worth $109,509,170. Insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Brighton Jones LLC lifted its stake in shares of Advanced Micro Devices by 178.2% during the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after buying an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC increased its stake in shares of Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock worth $1,001,000 after purchasing an additional 234 shares during the period. Sivia Capital Partners LLC lifted its holdings in Advanced Micro Devices by 125.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock worth $758,000 after purchasing an additional 2,970 shares during the last quarter. United Bank grew its holdings in Advanced Micro Devices by 22.0% in the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock valued at $1,881,000 after buying an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. increased its position in Advanced Micro Devices by 361.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock worth $1,310,000 after buying an additional 7,228 shares during the period. 71.34% of the stock is owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.