Advanced Micro Devices (NASDAQ:AMD) Shares Gap Up Following Analyst Upgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares gapped up before the market opened on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $495.76, but opened at $517.00. Advanced Micro Devices shares last traded at $513.14, with a volume of 5,356,633 shares changing hands.

A number of other equities analysts have also recently issued reports on the company. Raymond James Financial assumed coverage on Advanced Micro Devices in a report on Wednesday, May 6th. They set a “market perform” rating on the stock. Benchmark upped their target price 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. Truist Financial set a $478.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Rosenblatt Securities increased their price objective on shares of Advanced Micro Devices from $300.00 to $490.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, HSBC cut Advanced Micro Devices from a “buy” rating to a “hold” rating and raised their price objective for the company from $335.00 to $340.00 in a report on Monday, May 4th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $468.65.

Insider Activity at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the company’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 sale, the executive vice president directly owned 105,222 shares of the company’s stock, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Nora Denzel sold 8,626 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the sale, the director directly owned 87,173 shares in the company, valued at approximately $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 341,630 shares of company stock worth $152,147,456 over the last ninety days. Company insiders own 0.50% of the company’s stock.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Microsoft said it will deploy AMD’s new Helios rack-scale AI systems in Azure, a major validation of AMD’s strategy and a sign that the company is gaining traction in large-scale AI data centers. AMD launches Helios, its first rack AI system to rival Nvidia, adding Microsoft as newest buyer
• Positive Sentiment: AMD also announced a broader long-term partnership with Microsoft, including next-gen Instinct and EPYC processors and backend networking support, reinforcing its position in AI and cloud infrastructure. Microsoft to Deploy Next-Gen AMD Instinct and AMD EPYC Processors as the Companies Expand Their Long-Term Strategic Partnership
• Positive Sentiment: Analysts and market watchers are pointing to AMD’s upcoming “Advancing AI” event as a potential catalyst, with expectations for MI450x, MI500 and 2nm Venice CPU updates that could drive sentiment further. What's Going on With AMD Stock Monday?
• Neutral Sentiment: Broader semiconductor shares are rebounding after a recent sell-off, which is helping AMD move higher along with other AI chip names. SK Hynix Jumps 5%, AMD Rises 4% as Korea Becomes the New Catalyst for Global Chip Stocks
• Neutral Sentiment: Commentary around AMD’s valuation remains mixed, with some articles arguing the stock still trades at a premium and may need strong execution to justify recent gains. AMD vs. Broadcom: The Better AI-Chip Stock to Buy After the Sell-Off
• Negative Sentiment: Some broader chip-market articles warn that the semiconductor sector has entered a bear market, highlighting continued investor concern that the AI spending boom could cool. Semiconductor stocks enter bear market: Is bubble burst next?

Institutional Trading of Advanced Micro Devices

Hedge funds have recently made changes to their positions in the business. Brighton Jones LLC lifted its stake in shares of Advanced Micro Devices by 178.2% during the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after buying an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock valued at $1,001,000 after acquiring an additional 234 shares during the period. Sivia Capital Partners LLC lifted its position in Advanced Micro Devices by 125.1% during the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after acquiring an additional 2,970 shares during the last quarter. United Bank grew its position in shares of Advanced Micro Devices by 22.0% in the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after purchasing an additional 2,392 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in shares of Advanced Micro Devices by 361.0% during the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after purchasing an additional 7,228 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Stock Performance

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 company has a fifty day moving average of $503.89 and a two-hundred day moving average of $330.45. The firm has a market capitalization of $833.04 billion, a price-to-earnings ratio of 167.37, a PEG ratio of 1.43 and a beta of 2.47.

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, 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 firm had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same quarter last year, the business earned $0.96 EPS. The company’s quarterly revenue was up 37.8% compared to the same quarter last year. As a group, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.26 earnings per share for the current fiscal year.

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.