Advanced Micro Devices (NASDAQ:AMD) Hits New 52-Week High – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $562.99 and last traded at $542.5830, with a volume of 6936792 shares traded. The stock had previously closed at $537.37.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD shares are benefiting from the broader chip rally and continued enthusiasm for AI-related semiconductor stocks, which has kept the name well above its key technical averages. What’s Going On With AMD Stock Monday?
• Positive Sentiment: AMD expanded driver support for older GPUs, a move that can strengthen product adoption and customer loyalty while adding another catalyst for the stock. AMD Stock Up on Expanded FSR GPU Support
• Neutral Sentiment: New commentary asks whether investors should buy AMD now or wait for a pullback, highlighting that the stock has already more than doubled this year and may need to digest gains. Should You Buy AMD Stock Now or Wait for a Dip?
• Neutral Sentiment: Analysts remain broadly constructive, with brokerage coverage still pointing to a “Moderate Buy” consensus, which supports sentiment but does not change the near-term story by itself. Advanced Micro Devices, Inc. Receives Average Recommendation of “Moderate Buy” from Brokerages
• Negative Sentiment: Some market watchers are warning that AMD’s sharp run-up may be masking valuation and risk concerns, and insider selling has added to the cautious tone around the name. Sell alert? AMD insiders dumped $60 million worth of stock since June started

Analysts Set New Price Targets

A number of research analysts have 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 company a “neutral” rating in a research note on Wednesday, May 6th. Northland Securities restated a “market perform” rating and set a $260.00 price target on shares of Advanced Micro Devices in a research note on Monday, April 27th. Cantor Fitzgerald lifted their price target on shares of Advanced Micro Devices to $500.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Melius Research set a $540.00 price objective on Advanced Micro Devices in a report on Monday, May 18th. Finally, BTIG Research raised Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $430.68.

Advanced Micro Devices Price Performance

The business’s 50 day moving average is $417.16 and its two-hundred day moving average is $285.68. 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 $886.16 billion, a PE ratio of 178.23, a price-to-earnings-growth ratio of 1.58 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. The company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. Advanced Micro Devices’s revenue was up 37.8% compared to the same quarter last year. During the same period last year, the business earned $0.96 earnings per share. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices 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 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the business’s 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 transaction, the executive vice president owned 324,527 shares in the company, valued at $140,000,947.80. This represents a 5.66% decrease in their position. 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 ninety days, insiders sold 378,032 shares of company stock valued at $161,876,596. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of the stock. Jefferies Financial Group Inc. raised its position in 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 period. Williamson Legacy Group LLC purchased a new stake in Advanced Micro Devices in the fourth quarter worth about $1,118,000. Thoroughbred Financial Services LLC boosted its stake in shares of Advanced Micro Devices by 8.8% during the fourth quarter. Thoroughbred Financial Services LLC now owns 32,827 shares of the semiconductor manufacturer’s stock valued at $7,030,000 after purchasing an additional 2,654 shares in the last quarter. Valtinson Bruner Financial Planning LLC purchased a new position in shares of Advanced Micro Devices in the 4th quarter valued at $1,523,000. Finally, Weaver Consulting Group bought a new position in Advanced Micro Devices in the fourth quarter worth about $246,000. 71.34% of the stock is currently owned by institutional investors.

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.