Advanced Micro Devices (NASDAQ:AMD) Shares Up 7% – What’s Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) shot up 7% on Monday . The stock traded as high as $558.37 and last traded at $547.26. 32,239,971 shares traded hands during trading, a decline of 16% from the average session volume of 38,182,531 shares. The stock had previously closed at $511.57.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD signed a definitive agreement with Rackspace to deploy an initial 30 MW of AMD-based AI compute across Rackspace’s global data centers, strengthening AMD’s enterprise AI growth story. Article Title
• Positive Sentiment: Citi raised AMD to Buy and lifted its target to $575, citing major GPU sales potential at Meta and a booming agentic AI server CPU market. Article Title
• Positive Sentiment: Bernstein’s “CPU renaissance” note and related price-target hikes reinforced expectations for stronger data-center CPU demand, with AMD seen as a key beneficiary. Article Title
• Positive Sentiment: AMD’s move to address AI memory bottlenecks with its MEXT acquisition and other ecosystem efforts supports the company’s long-term AI platform strategy. Article Title
• Neutral Sentiment: EVP Mark D. Papermaster sold 6,000 shares under a pre-arranged 10b5-1 plan; this is notable but less likely to change the business outlook. Article Title

Analysts Set New Price Targets

Several brokerages have weighed in on AMD. Wolfe Research set a $450.00 price objective on shares of Advanced Micro Devices and gave the stock an “outperform” rating in a report on Monday. Zacks Research lowered shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Morgan Stanley raised their price objective on shares of Advanced Micro Devices from $360.00 to $410.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Evercore reissued an “outperform” rating and set a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Finally, The Goldman Sachs Group raised shares of Advanced Micro Devices from a “buy” rating to a “buy” rating in a report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average target price of $430.68.

Advanced Micro Devices Stock Performance

The stock’s 50-day moving average price is $404.65 and its 200-day moving average price is $281.16. 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 has a market capitalization of $835.65 billion, a P/E ratio of 168.03, a P/E/G ratio of 1.48 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $9.90 billion. During the same period last year, the firm posted $0.96 EPS. The company’s revenue for the quarter was up 37.8% on a year-over-year basis. As a group, equities analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Buying and Selling

In other 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 transaction, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the completion of the sale, the executive vice president owned 324,527 shares in the company, valued at approximately $140,000,947.80. This represents a 5.66% 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. In the last 90 days, insiders sold 378,032 shares of company stock worth $161,876,596. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several hedge funds have recently bought and sold shares of AMD. Jefferies Financial Group Inc. grew its stake in shares of Advanced Micro Devices by 6,228.8% in the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock worth $65,966,000 after purchasing an additional 303,154 shares during the last quarter. Williamson Legacy Group LLC acquired a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $1,118,000. Thoroughbred Financial Services LLC grew its stake in shares of Advanced Micro Devices by 8.8% in the 4th quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock worth $7,030,000 after purchasing an additional 2,654 shares during the last quarter. Zweig DiMenna Associates LLC grew its stake in shares of Advanced Micro Devices by 127.6% in the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer’s stock worth $11,746,000 after purchasing an additional 40,708 shares during the last quarter. Finally, Valtinson Bruner Financial Planning LLC acquired a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $1,523,000. 71.34% of the stock is currently 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.