Advanced Micro Devices (NASDAQ:AMD) Stock Jumps 2.4% – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 2.4% during mid-day trading on Thursday. The company traded as high as $630.80 and last traded at $629.26. Approximately 25,101,694 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 33,344,207 shares. The stock had previously closed at $614.61.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Renewed AI and CPU optimism: Enthusiasm surrounding Meta Platforms’ Muse AI assistant reinforced expectations that AI workloads will require more high-performance CPUs in addition to GPUs. AMD CEO Lisa Su has argued that mainstream “agentic AI” could drive a new wave of CPU demand. Why are Intel and AMD stocks rising on Thursday?
• Positive Sentiment: AI infrastructure positioning: Investors view AMD as an increasingly credible alternative to Nvidia in data-center accelerators and AI infrastructure. Articles also point to potential growth from the MI450 and Helios platforms, AI inference, and expanding use cases for AI agents. AMD is Emerging as a Viable Alternative to Nvidia
• Positive Sentiment: Strong market momentum: AMD recently broke above a technical buy point and has become one of the market’s highest-momentum large-cap technology stocks. The breakout has encouraged bullish forecasts and continued institutional attention. Big Cap 20 Name AMD Shows The Potential Power Of Large Cap Stocks
• Neutral Sentiment: $1 trillion milestone raises visibility: AMD’s entry into the trillion-dollar market-cap group highlights investor confidence in its AI opportunity, but the milestone itself does not change near-term earnings or cash flow. The rally has also prompted debate over whether the stock remains attractive after its substantial gains. Advanced Micro Devices reaches $1T market cap amid AI boom
• Negative Sentiment: Valuation and macroeconomic risks: AMD’s elevated valuation leaves the shares vulnerable to profit-taking, particularly as the 30-year Treasury yield reaches a multiyear high. Critics warn that AI spending could produce weaker returns than expected and that the stock already prices in significant future growth. AMD: The AI Spending Cycle Could Hit A Wall

Wall Street Analyst Weigh In

A number of brokerages have weighed in on AMD. Loop Capital raised Advanced Micro Devices to a “strong-buy” rating in a research report on Tuesday, June 16th. Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 1st. Rosenblatt Securities upped their price objective on shares of Advanced Micro Devices from $665.00 to $700.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Raymond James Financial upgraded shares of Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and increased their target price for the stock from $565.00 to $641.00 in a report on Tuesday, August 25th. Finally, Wolfe Research set a $450.00 target price on shares of Advanced Micro Devices and gave the company an “outperform” rating in a research report on Monday, June 15th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $565.12.

Advanced Micro Devices Price Performance

The stock has a fifty day simple moving average of $499.09 and a 200-day simple moving average of $425.36. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The company has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 161.76, a P/E/G ratio of 6.47 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (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 firm had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter last year, the company earned $0.48 EPS. The firm’s revenue for the quarter was up 50.1% compared to the same quarter last year. On average, equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Forrest Norrod sold 17,261 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $503.05, for a total transaction of $8,683,146.05. Following the transaction, the executive vice president owned 363,317 shares of the company’s stock, valued at approximately $182,766,616.85. This represents a 4.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the company’s stock in a transaction dated 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 sale, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

Several hedge funds have recently modified their holdings of the business. Norges Bank acquired a new stake in Advanced Micro Devices in the fourth quarter valued at $4,929,312,000. Bank of America Corp DE acquired a new position in shares of Advanced Micro Devices in the second quarter worth $7,022,226,000. Cardano Risk Management B.V. purchased a new position in Advanced Micro Devices in the 4th quarter valued at about $1,000,783,000. BlackRock Inc. boosted its position 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 acquiring an additional 4,535,126 shares during the last quarter. Finally, Franklin Resources Inc. boosted its stake in Advanced Micro Devices by 340.1% in the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after buying an additional 3,669,054 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.