Advanced Micro Devices (NASDAQ:AMD) Shares Up 5.5% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was up 5.5% during trading on Tuesday. The company traded as high as $563.91 and last traded at $560.26. 20,458,614 shares traded hands during mid-day trading, a decline of 36% from the average daily volume of 31,781,248 shares. The stock had previously closed at $531.28.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Meta partnership expands: AMD plans to invest $1 billion in Meta’s equity offering while supplying EPYC processors, Instinct GPUs and Helios rack-scale systems for Meta’s AI infrastructure. Helios systems are already installed and being tested, providing investors with greater visibility into potential large-scale deployments. AMD and Meta Advance Strategic Partnership to Power Meta’s Superintelligence Infrastructure
• Positive Sentiment: AI demand and analyst support: Rosenblatt named AMD its top semiconductor pick ahead of earnings, citing strengthening data-center fundamentals. Susquehanna also reportedly raised its price target to $620 from $550, while a new Vultr cloud region will use a 20-megawatt AMD Instinct MI355X supercluster. Rosenblatt names top semiconductor picks amid data-center strength
• Positive Sentiment: Upcoming earnings catalyst: AMD is scheduled to report fiscal third-quarter results on November 3. Investors are looking for evidence that server CPU demand, AI accelerator sales and future guidance can support the stock’s elevated valuation.
• Neutral Sentiment: Industry-wide momentum: AMD benefited from a broader chip rally following strong AI infrastructure spending expectations and Anthropic’s IPO filing. Nvidia’s planned $3 billion investment in Meta further reinforced the market’s focus on hyperscaler capital commitments. AMD stock rallies on expanded Meta AI infrastructure deal and broader chip rally
• Negative Sentiment: Financing and execution concerns: Some analysts questioned whether chipmakers investing in a major customer’s stock creates “circular financing,” potentially reducing the quality of the demand signal. Meta’s large equity-raising plan could also pressure its shares and raise questions about future returns on AI spending.
• Negative Sentiment: Valuation and selling pressure: AMD trades at a very high earnings multiple, while company insiders and ARK Invest have recently reported sales. Higher advanced-packaging and wafer costs from TSMC could additionally pressure AMD’s margins. Cathie Wood sells AMD and TSMC shares

Analyst Upgrades and Downgrades

AMD has been the subject of a number of research analyst reports. Benchmark lifted their price target on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Weiss Ratings upgraded shares of Advanced Micro Devices from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Susquehanna raised their target price on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the stock a “positive” rating in a report on Wednesday, October 21st. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. Finally, Piper Sandler began coverage on shares of Advanced Micro Devices in a research note on Tuesday, September 15th. They issued an “overweight” rating and a $600.00 price objective on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $606.76.

Advanced Micro Devices Stock Performance

The company has a market cap of $914.61 billion, a P/E ratio of 144.03, a PEG ratio of 5.30 and a beta of 2.45. The business’s 50 day simple moving average is $542.28 and its 200 day simple moving average is $400.69. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same period last year, the firm earned $0.48 EPS. The company’s revenue was up 50.1% on a year-over-year basis. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,262 shares of the business’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total value of $9,333,563.40. Following the sale, the executive vice president owned 353,317 shares in the company, valued at $191,038,501.90. The trade was a 4.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 70,000 shares of the business’s stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the completion of the sale, the chief executive officer owned 3,032,156 shares in the company, valued at approximately $1,536,696,660.80. The trade was a 2.26% 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 three months, insiders have sold 231,100 shares of company stock valued at $114,867,400. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Large investors have recently made changes to their positions in the company. BlackRock Inc. boosted its position in shares of Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after acquiring an additional 4,535,126 shares during the last quarter. State Street Corp increased its position in Advanced Micro Devices by 2.9% in the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after purchasing an additional 2,149,563 shares during the last quarter. Bank of America Corp DE purchased a new stake in Advanced Micro Devices during the second quarter valued at $7,022,226,000. Jennison Associates LLC raised its stake in Advanced Micro Devices by 5.8% during the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock valued at $5,793,388,000 after purchasing an additional 545,575 shares in the last quarter. Finally, Wellington Management Group LLP raised its stake in Advanced Micro Devices by 33.9% during the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock valued at $5,422,444,000 after purchasing an additional 2,365,419 shares in the last quarter. 71.34% of the stock is owned by institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.