Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.4% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was up 2.4% during mid-day trading on Thursday. The company traded as high as $630.80 and last traded at $629.26. 25,101,694 shares were traded during trading, a decline of 25% from the average daily volume of 33,344,207 shares. The stock had previously closed at $614.61.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Renewed AI and CPU optimism: Enthusiasm surrounding Meta Platforms’ Muse AI assistant reinforced expectations that AI workloads will require more high-performance CPUs in addition to GPUs. AMD CEO Lisa Su has argued that mainstream “agentic AI” could drive a new wave of CPU demand. Why are Intel and AMD stocks rising on Thursday?
• Positive Sentiment: AI infrastructure positioning: Investors view AMD as an increasingly credible alternative to Nvidia in data-center accelerators and AI infrastructure. Articles also point to potential growth from the MI450 and Helios platforms, AI inference, and expanding use cases for AI agents. AMD is Emerging as a Viable Alternative to Nvidia
• Positive Sentiment: Strong market momentum: AMD recently broke above a technical buy point and has become one of the market’s highest-momentum large-cap technology stocks. The breakout has encouraged bullish forecasts and continued institutional attention. Big Cap 20 Name AMD Shows The Potential Power Of Large Cap Stocks
• Neutral Sentiment: $1 trillion milestone raises visibility: AMD’s entry into the trillion-dollar market-cap group highlights investor confidence in its AI opportunity, but the milestone itself does not change near-term earnings or cash flow. The rally has also prompted debate over whether the stock remains attractive after its substantial gains. Advanced Micro Devices reaches $1T market cap amid AI boom
• Negative Sentiment: Valuation and macroeconomic risks: AMD’s elevated valuation leaves the shares vulnerable to profit-taking, particularly as the 30-year Treasury yield reaches a multiyear high. Critics warn that AI spending could produce weaker returns than expected and that the stock already prices in significant future growth. AMD: The AI Spending Cycle Could Hit A Wall

Analyst Ratings Changes

AMD has been the topic of several recent research reports. KeyCorp set a $650.00 price target on Advanced Micro Devices in a research report on Wednesday, August 5th. Sanford C. Bernstein restated an “outperform” rating and set a $650.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Mizuho increased their price target on Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a research report on Monday, July 27th. Bank of America lifted their price target on Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Finally, Truist Financial upped their price objective on shares of Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Advanced Micro Devices presently has a consensus rating of “Moderate Buy” and a consensus price target of $565.12.

Advanced Micro Devices Trading Up 2.4%

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 company has a 50-day moving average price of $499.09 and a 200 day moving average price of $425.36. The firm has a market cap of $1.03 trillion, a price-to-earnings ratio of 161.76, a PEG ratio of 6.47 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The company had revenue of $11.54 billion for 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 firm’s quarterly revenue was up 50.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.48 EPS. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In related news, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the completion of the sale, the senior vice president directly 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 sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the firm’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AMD. BlackRock Inc. raised its holdings in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after acquiring an additional 4,535,126 shares during the period. State Street Corp increased its holdings in Advanced Micro Devices by 2.9% in the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after buying an additional 2,149,563 shares during the period. Geode Capital Management LLC raised its position in Advanced Micro Devices by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock worth $8,015,897,000 after purchasing an additional 287,525 shares in the last quarter. Norges Bank bought a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $4,929,312,000. Finally, Invesco Ltd. boosted its stake in shares of Advanced Micro Devices by 15.9% in the 4th quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer’s stock valued at $3,313,758,000 after purchasing an additional 2,124,867 shares in the last quarter. Institutional investors and hedge funds own 71.34% of the company’s stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.