Advanced Micro Devices (NASDAQ:AMD) Upgraded by BMO Capital Markets to Strong-Buy Rating

BMO Capital Markets upgraded shares of Advanced Micro Devices (NASDAQ:AMD) to a strong-buy rating in a research note issued to investors on Thursday,Zacks.com reports.

AMD has been the topic of several other research reports. Jefferies Financial Group set a $650.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Northland Securities reiterated a “market perform” rating and set a $260.00 price target on shares of Advanced Micro Devices in a report on Monday, April 27th. JPMorgan Chase & Co. lifted their price objective on Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Loop Capital raised Advanced Micro Devices to a “strong-buy” rating in a research note on Tuesday, June 16th. Finally, Wells Fargo & Company upped their target price on Advanced Micro Devices from $615.00 to $700.00 and gave the company an “overweight” rating in a research report on Wednesday, August 5th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $546.95.

Advanced Micro Devices Stock Up 0.8%

Advanced Micro Devices stock opened at $473.25 on Thursday. The firm has a market cap of $772.57 billion, a price-to-earnings ratio of 121.66 and a beta of 2.48. Advanced Micro Devices has a 52-week low of $149.22 and a 52-week high of $584.73. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The firm has a 50 day moving average price of $511.40 and a two-hundred day moving average price of $375.55.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same period in the prior year, the firm posted $0.48 EPS. The company’s quarterly revenue was up 50.1% on a year-over-year basis. Equities analysts predict that Advanced Micro Devices will post 6.44 EPS for the current year.

Insider Activity

In other news, EVP Paul Darren Grasby sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the transaction, the executive vice president directly owned 117,687 shares of the company’s stock, valued at $60,598,213.17. This represents a 11.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction on 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 of the company’s stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 210,763 shares of company stock valued at $99,912,107. Corporate insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently made changes to their positions in AMD. Norges Bank purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $4,929,312,000. Bank of America Corp DE bought a new position in shares of Advanced Micro Devices in the second quarter valued at approximately $7,022,226,000. Jennison Associates LLC boosted its position in shares of Advanced Micro Devices by 181.6% during the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock valued at $2,336,552,000 after buying an additional 7,035,991 shares during the last quarter. Cardano Risk Management B.V. bought a new stake in Advanced Micro Devices during the fourth quarter worth $1,000,783,000. Finally, BlackRock Inc. grew its holdings in Advanced Micro Devices by 3.1% during the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after buying an additional 4,535,126 shares in the last quarter. 71.34% of the stock is owned by institutional investors.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: BMO initiated coverage of AMD with a buy recommendation, adding to bullish Wall Street sentiment toward the semiconductor sector and AMD’s AI opportunity. BMO Buy Ratings for Semiconductor Stocks
• Positive Sentiment: AMD continues to show stronger and more consistent revenue growth than Arm Holdings. Its latest quarter included record revenue of $11.54 billion, up 50.1% year over year, and earnings that exceeded analyst expectations. AMD and Arm Revenue Comparison
• Positive Sentiment: Reports that Google may collaborate with AMD on its next-generation TPU could represent a meaningful design win and broaden AMD’s relationships with hyperscalers. Coatue Management’s new position, valued at approximately $55.8 million, also signals institutional interest in the AI trade. Google Reportedly Working With AMD on a TPU
• Neutral Sentiment: AMD is increasingly viewed as Nvidia’s most credible AI-chip challenger, particularly with its Helios platform, but investors remain focused on whether it can narrow Nvidia’s ecosystem and market-share advantages. AMD and Nvidia AI Competition
• Negative Sentiment: Google’s expanding custom-chip program, including its relationship with Marvell, could increase competition for AI-inference workloads. A report that SpaceX selected Nvidia’s Vera Rubin platform reinforces concerns that AMD is still losing some high-profile AI infrastructure opportunities. SpaceX Selects Nvidia AI Infrastructure
• Negative Sentiment: CEO Lisa Su and SVP Ava Hahn sold shares totaling roughly $8.7 million. The transactions were made under pre-arranged Rule 10b5-1 plans, limiting their signaling value, but the sales may still weigh on sentiment after AMD’s substantial rally. AMD Insider Stock Sale
• Negative Sentiment: Valuation remains a risk: AMD trades at a very high earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if AI growth slows or fails to meet aggressive expectations. AMD Valuation Analysis

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.