Advanced Micro Devices (NASDAQ:AMD) Hits New 12-Month High – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares reached a new 52-week high on Monday . The stock traded as high as $556.79 and last traded at $548.6780, with a volume of 5410504 shares. The stock had previously closed at $511.57.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Citi upgraded AMD to Buy and raised its price target to $575 from $460, citing upside in AMD’s GPU business and stronger AI tailwinds.
• Positive Sentiment: Wolfe Research reiterated Outperform and said there is “substantial room for upside” to 2026 and 2027 consensus estimates, helped by incremental CPU strength and the chance of additional gigawatt-scale MI450 customers. Wolfe Research sees substantial upside to AMD estimates
• Positive Sentiment: Other reports highlighted AMD’s AI chip roadmap as a reason bulls remain constructive, suggesting investors are focusing on the company’s long-term AI opportunity despite valuation concerns.
• Positive Sentiment: AMD is also being helped by a broader rally in AI and semiconductor stocks, with premarket strength tied to improved risk sentiment and easing geopolitical concerns.
• Neutral Sentiment: Several articles framed AMD as a possible future $1 trillion company, but also emphasized that valuation is already elevated and that execution risks remain.
• Neutral Sentiment: Market commentary noted that some of AMD’s gains are driven by sector momentum rather than a single company-specific catalyst, so part of the move may reflect sentiment across chip stocks.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on AMD shares. JPMorgan Chase & Co. boosted their target price on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Wells Fargo & Company boosted their target price on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Melius Research set a $540.00 target price on shares of Advanced Micro Devices in a research report on Monday, May 18th. Jefferies Financial Group downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research report on Wednesday, May 6th. Finally, KeyCorp boosted their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $428.65.

Advanced Micro Devices Price Performance

The company’s fifty day moving average price is $386.41 and its 200 day moving average price is $274.60. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The firm has a market capitalization of $893.65 billion, a price-to-earnings ratio of 179.41, a price-to-earnings-growth ratio of 1.50 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same period in the previous year, the business posted $0.96 EPS. The company’s quarterly revenue was up 37.8% on a year-over-year basis. Equities research analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value 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 approximately $1,334,572,400.31. This represents a 4.14% decrease in their position. The transaction was disclosed in a document filed 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 Paul Darren Grasby sold 24,376 shares of the company’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the transaction, the executive vice president owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 372,032 shares of company stock worth $158,658,616. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AMD. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Advanced Micro Devices by 12.8% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock valued at $43,000 after acquiring an additional 24 shares in the last quarter. CLG LLC boosted its holdings in shares of Advanced Micro Devices by 3.1% in the first quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock valued at $205,000 after acquiring an additional 30 shares in the last quarter. Columbia Bank boosted its holdings in shares of Advanced Micro Devices by 0.7% in the first quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock valued at $1,055,000 after acquiring an additional 34 shares in the last quarter. Evolution Wealth Management Inc. boosted its holdings in shares of Advanced Micro Devices by 11.0% in the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock valued at $72,000 after acquiring an additional 35 shares in the last quarter. Finally, Focused Wealth Management Inc boosted its holdings in shares of Advanced Micro Devices by 2.7% in the first quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock valued at $291,000 after acquiring an additional 37 shares in the last quarter. Institutional investors own 71.34% of the company’s stock.

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.