Advanced Micro Devices (NASDAQ:AMD) Trading Up 7.8% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 7.8% on Tuesday . The stock traded as high as $506.96 and last traded at $503.89. Approximately 37,954,995 shares changed hands during trading, a decline of 3% from the average daily volume of 39,159,109 shares. The stock had previously closed at $467.51.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Investor sentiment is improving around AMD’s AI opportunity, with articles highlighting “agentic AI” as a major growth driver for EPYC CPUs and suggesting Wall Street may still be underestimating AMD’s upside. Wall Street Is Only Just Beginning to Recognize Advanced Micro Devices’ Agentic AI Upside Potential
• Positive Sentiment: AMD is getting a boost from broad strength in AI and semiconductor stocks, as traders rotate into chipmakers tied to hyperscaler spending, advanced packaging demand, and AI infrastructure growth. NVDA Gains 23.5% Since April, TSM Up 19.7%: What’s Driving the Rally?
• Positive Sentiment: OneQode announced plans to deploy AMD Instinct GPUs and AMD Helios rack-scale solutions for its global AI infrastructure rollout, which supports the view that AMD is gaining traction in enterprise AI deployments. OneQode to Deploy AMD Instinct GPUs and Plans for AMD Helios Rack-Scale Solution for Global AI Infrastructure
• Positive Sentiment: Recent analyst commentary remains constructive, including higher price targets and coverage suggesting AMD could still have substantial long-term upside, even toward a $1 trillion market-cap trajectory over time. What Will It Take for AMD’s Market Cap to Hit $1 Trillion?
• Neutral Sentiment: Some commentary warns that momentum in AMD and other chip stocks may eventually cool, and a few pieces frame the rally as potentially stretched rather than fundamentally new. Intel, AMD, and Other Momentum Stocks Look Unstoppable. Look Again.
• Negative Sentiment: Bearish takes from some market commentators argue Nvidia could pressure AMD in CPUs and that competition remains a risk, which could temper the rally if investors refocus on market-share concerns. Nvidia Vs. AMD: Nvidia Will Eat AMD’s CPU Lunch

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on AMD. Seaport Research Partners raised Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 price objective for the company in a report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price target on Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Benchmark raised their price objective on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Susquehanna lifted their target price on shares of Advanced Micro Devices from $375.00 to $450.00 and gave the company a “positive” rating in a report on Wednesday, May 6th. Finally, Northland Securities reiterated a “market perform” rating and issued a $260.00 target price on shares of Advanced Micro Devices in a research note on Monday, April 27th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $410.00.

Advanced Micro Devices Stock Up 7.8%

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The business’s 50 day moving average price is $302.82 and its 200 day moving average price is $248.30. The firm has a market cap of $821.64 billion, a PE ratio of 165.21, a PEG 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 (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same period in the previous year, the firm posted $0.96 EPS. Advanced Micro Devices’s revenue was up 37.8% compared to the same quarter last year. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 3,021,899 shares in the company, valued at approximately $1,346,286,223.49. The trade was a 3.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $444.39, for a total value of $10,832,450.64. Following the sale, the executive vice president owned 105,222 shares of the company’s stock, valued at $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 329,085 shares of company stock valued at $114,051,007. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds have recently modified their holdings of the business. Clal Insurance Enterprises Holdings Ltd grew its stake in Advanced Micro Devices by 12.8% during the 1st 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 lifted its stake in Advanced Micro Devices by 3.1% in the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock worth $205,000 after purchasing an additional 30 shares in the last quarter. Columbia Bank lifted its stake in Advanced Micro Devices by 0.7% in the 1st quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock worth $1,055,000 after purchasing an additional 34 shares in the last quarter. Evolution Wealth Management Inc. boosted its holdings in shares of Advanced Micro Devices by 11.0% during the 1st quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock worth $72,000 after purchasing an additional 35 shares during the last quarter. Finally, Focused Wealth Management Inc boosted its holdings in shares of Advanced Micro Devices by 2.7% during the 1st quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock worth $291,000 after purchasing an additional 37 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.