Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 4% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price rose 4% during trading on Friday . The stock traded as high as $481.41 and last traded at $467.51. Approximately 34,566,669 shares traded hands during trading, a decline of 12% from the average daily volume of 39,169,438 shares. The stock had previously closed at $449.59.

Key Advanced Micro Devices News

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

• Positive Sentiment: CEO Lisa Su said AMD expects strong CPU growth over the next five years, helping fuel optimism about long-term demand for its data center chips. AMD Stock Rallies as Lisa Su Expects CPU Growth of ‘35% Each Year’ for the Next 5 Years
• Positive Sentiment: AMD began ramping production of its “Venice” EPYC CPUs on TSMC’s 2nm node, a major manufacturing milestone that supports its AI and server growth story. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD announced more than $10 billion of investment across Taiwan’s AI ecosystem to expand advanced packaging capacity and support future AI deployments, including the Helios rack-scale platform. AMD Announces More Than $10 Billion in Taiwan Ecosystem Investments to Accelerate AI Infrastructure
• Positive Sentiment: Nvidia’s strong AI commentary and broader chip-sector momentum are boosting confidence that AMD will benefit from continued AI infrastructure spending. AMD Stock (AMD) Hits All-Time High as Nvidia Earnings Boost Confidence in the AI Trade
• Neutral Sentiment: Some commentary suggests AMD’s sharp rally has already priced in a lot of good news, so investors may continue debating valuation after the recent run-up. After a Q1 Blowout and a Soaring Share Price, Is AMD Stock Still a Buy?

Wall Street Analyst Weigh In

AMD has been the topic of several research analyst reports. Royal Bank Of Canada raised their target price on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the company a “sector perform” rating in a research note on Wednesday, May 6th. Morgan Stanley raised their target price on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Rosenblatt Securities raised their price objective on shares of Advanced Micro Devices from $300.00 to $490.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Truist Financial set a $478.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. Finally, Roth Mkm restated a “buy” rating and set a $500.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $410.00.

Advanced Micro Devices Stock Performance

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The company’s 50-day moving average price is $297.43 and its two-hundred day moving average price is $246.86. The company has a market cap of $762.32 billion, a P/E ratio of 153.28, a price-to-earnings-growth ratio of 1.37 and a beta of 2.40.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share 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 company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same quarter last year, the firm posted $0.96 EPS. The business’s revenue for the quarter was up 37.8% on a year-over-year basis. As a group, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Activity

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 24,376 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares in the company, valued at $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer owned 3,021,899 shares of the company’s stock, valued at approximately $1,346,286,223.49. The trade was a 3.97% decrease in their ownership of the stock. 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 have sold 329,085 shares of company stock valued at $114,051,007. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Joseph Group Capital Management acquired a new position in shares of Advanced Micro Devices in the fourth quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter worth about $27,000. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices in the first quarter worth approximately $31,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

About Advanced Micro Devices

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.