Advanced Micro Devices (NASDAQ:AMD) Rating Lowered to “Hold” at Zacks Research

Advanced Micro Devices (NASDAQ:AMD) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, Zacks reports.

Several other research analysts have also commented on AMD. Truist Financial lifted their price target on Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Raymond James Financial upgraded Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and lifted their target price for the stock from $565.00 to $641.00 in a report on Tuesday, August 25th. Barclays downgraded Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research report on Friday, June 12th. Benchmark increased their price target on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a report on Wednesday, July 22nd. Finally, Royal Bank Of Canada restated a “sector perform” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $553.72.

Advanced Micro Devices Stock Down 0.6%

Shares of AMD stock opened at $457.06 on Tuesday. The company’s fifty day simple moving average is $501.61 and its two-hundred day simple moving average is $390.93. Advanced Micro Devices has a 52 week low of $149.22 and a 52 week high of $584.73. The stock has a market cap of $746.14 billion, a P/E ratio of 117.50, a PEG ratio of 4.76 and a beta of 2.48. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share 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 firm had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same period last year, the firm posted $0.48 earnings per share. Advanced Micro Devices’s revenue for the quarter was up 50.1% compared to the same quarter last year. Analysts predict that Advanced Micro Devices will post 6.44 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 17,261 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $459.95, for a total value of $7,939,196.95. Following the completion of the sale, the executive vice president owned 373,317 shares in the company, valued at approximately $171,707,154.15. The trade was a 4.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 232,577 shares of company stock valued at $109,509,170. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Large investors have recently added to or reduced their stakes in the stock. MLG Wealth Management DBA Pine Grove Financial Group purchased a new position in shares of Advanced Micro Devices during the second quarter worth approximately $716,000. Range Advisory LLC raised its stake in shares of Advanced Micro Devices by 47.0% during the second quarter. Range Advisory LLC now owns 5,954 shares of the semiconductor manufacturer’s stock valued at $3,459,000 after acquiring an additional 1,903 shares in the last quarter. Capital & Planning LLC purchased a new stake in shares of Advanced Micro Devices in the second quarter valued at approximately $313,000. Agur Provident & Training Funds Management Ltd. purchased a new stake in shares of Advanced Micro Devices in the second quarter valued at approximately $12,263,000. Finally, Cornerstone Financial Management LLC grew its stake in Advanced Micro Devices by 76.6% in the second quarter. Cornerstone Financial Management LLC now owns 256 shares of the semiconductor manufacturer’s stock worth $149,000 after purchasing an additional 111 shares in the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s AI infrastructure collaboration with Cisco and Saudi Arabia’s HUMAIN is gaining traction: MI355X-based systems are reportedly live and serving customers, with plans for an additional 250 megawatts beginning in 2027 and as much as 1 gigawatt by 2030. The buildout could create a significant long-term data-center revenue opportunity. AMD Saudi Arabia AI infrastructure
• Positive Sentiment: Several bullish commentaries argue that AMD could benefit from the next phase of AI spending, particularly inference workloads and server CPUs. One forecast sees the company potentially reaching a $2 trillion valuation by 2030, while analysts cited elsewhere see additional upside from current levels. AMD $2 trillion forecast
• Positive Sentiment: Tiger Global reportedly opened an AMD position while reducing its Alphabet stake, suggesting some institutional investors are rotating toward AI-chip exposure. Tiger Global AMD position
• Neutral Sentiment: AMD remains above a widely watched support level near $450, but technical coverage says higher U.S. interest rates are weighing on high-growth technology stocks and limiting near-term momentum. AMD technical levels and rates
• Negative Sentiment: J.P. Morgan reportedly views AMD as facing execution challenges relative to Nvidia. Nvidia’s investment in MediaTek and continued efforts to defend its AI-chip ecosystem also reinforce concerns that AMD must execute effectively to gain share. J.P. Morgan Nvidia versus AMD
• Negative Sentiment: Investors are also taking profits after AMD’s substantial 2026 advance. Commentary highlights valuation pressure, with the stock trading at a very high earnings multiple, while ARK Invest has continued reducing its AMD position. ARK Invest reduces AMD shares

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.