Advanced Micro Devices (NASDAQ:AMD) Trading Up 4.9% – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares rose 4.9% during mid-day trading on Tuesday . The stock traded as high as $481.50 and last traded at $479.18. 18,881,404 shares changed hands during trading, a decline of 46% from the average daily volume of 34,916,367 shares. The stock had previously closed at $456.74.

Key Advanced Micro Devices News

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

• Positive Sentiment: Raymond James upgraded AMD to Strong Buy, citing improving competitive positioning, expected data-center growth and the potential for AMD to outperform Nvidia in certain CPU and AI markets. The firm’s bullish outlook helped reinforce investor confidence. AMD Stock Gets Strong Buy Upgrade From Raymond James
• Positive Sentiment: BMO Capital initiated coverage with a $550 price target, pointing to AMD’s roughly 50% year-over-year revenue growth, major AI customer commitments and the approaching Helios AI platform launch. Other analysts also see additional upside, with several targets above $600. BMO Capital Initiates AMD Coverage
• Positive Sentiment: AMD’s announcement that its Versal adaptive SoCs will add UCIe connectivity supports a more open, modular chiplet ecosystem. Investors viewed the update as beneficial for AMD’s embedded and AI product strategy. AMD Stock Rallies on UCIe Chip Update
• Positive Sentiment: Coverage highlighted AMD’s expanding relationships with OpenAI and Meta, which could validate its Instinct GPUs as a large-scale alternative to Nvidia’s accelerators. Analysts also see an opportunity from AI data centers requiring more high-performance CPUs. AMD Is Winning Nvidia Customers
• Positive Sentiment: Strength across AI-linked semiconductor stocks, including Marvell, Nvidia and Micron, lifted exchange-traded funds holding AMD and contributed to supportive sector momentum. SPY Gains on AMD Stock Movement
• Neutral Sentiment: Nvidia’s upcoming earnings and guidance remain an important near-term catalyst for AMD. Strong AI demand commentary could support AMD, while evidence of Nvidia maintaining its lead could pressure the broader accelerator trade. Nvidia Earnings Could Move AI Stocks
• Negative Sentiment: Quiver Quantitative data showed 99 reported AMD insider sales during the past six months, with no purchases; CEO Lisa Su accounted for a significant portion. Such selling may raise concerns about valuation and insider conviction, although transactions can reflect compensation or diversification. AMD Insider Trading Activity
• Negative Sentiment: AMD’s elevated valuation leaves limited room for execution disappointments. Recent debt issuance and plans to invest more than $10 billion in Taiwan packaging and AI manufacturing capacity could increase leverage and near-term capital-spending risk, even as they support long-term growth. AMD Debt Raise and Taiwan AI Push

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Royal Bank Of Canada reissued a “sector perform” rating and set a $540.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Rosenblatt Securities boosted their target price on shares of Advanced Micro Devices from $665.00 to $700.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Bank of America increased their price target on Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Raymond James Financial upgraded Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and raised their price target for the stock from $565.00 to $641.00 in a research note on Tuesday. Finally, William Blair reaffirmed a “market perform” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $553.72.

Advanced Micro Devices Price Performance

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 company has a market cap of $782.25 billion, a P/E ratio of 123.18 and a beta of 2.48. The firm’s fifty day moving average is $509.59 and its two-hundred day moving average is $377.97.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business’s quarterly revenue was up 50.1% on a year-over-year basis. During the same period last year, the firm earned $0.48 earnings per share. As a group, analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total value of $1,462,649.17. Following the completion of the transaction, the senior vice president directly owned 26,623 shares in the company, valued at $13,010,393.87. This represents a 10.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 15,000 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the sale, the executive vice president directly owned 117,687 shares of the company’s stock, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 210,763 shares of company stock worth $99,912,107 in the last quarter. 0.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AMD. California State Teachers Retirement System grew its holdings in Advanced Micro Devices by 58,272.0% during the 2nd quarter. California State Teachers Retirement System now owns 1,436,775,740 shares of the semiconductor manufacturer’s stock valued at $834,637,395,000 after buying an additional 1,434,314,328 shares in the last quarter. Norges Bank bought a new position in shares of Advanced Micro Devices during the 4th quarter valued at approximately $4,929,312,000. Bank of America Corp DE bought a new position in shares of Advanced Micro Devices during the 2nd quarter valued at approximately $7,022,226,000. Jennison Associates LLC grew its holdings in shares of Advanced Micro Devices by 181.6% in 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 purchasing an additional 7,035,991 shares in the last quarter. Finally, Cardano Risk Management B.V. bought a new stake in Advanced Micro Devices in the fourth quarter worth $1,000,783,000. Institutional investors own 71.34% of the company’s stock.

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.