Advanced Micro Devices (NASDAQ:AMD) Shares Up 3.7% on Earnings Beat

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 3.7% on Tuesday following a stronger than expected earnings report. The company traded as high as $497.40 and last traded at $483.90. Approximately 29,981,579 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 31,645,783 shares. The stock had previously closed at $466.84.

The semiconductor manufacturer reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The company had revenue of $13.38 billion for the quarter, compared to the consensus estimate of $13.10 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.

Advanced Micro Devices News Summary

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

• Positive Sentiment: A broader bounce in semiconductor stocks is supporting AMD after a sharp sector selloff. Article: AMD Advances as Chip Stocks Bounce Ahead of Earnings
• Positive Sentiment: Reports of a possible RDNA 5+ graphics architecture reaching AMD’s APUs in 2029 have added speculative product excitement, though the timeline is not confirmed. Article: AMD Stock Rallies on Reports of RDNA 5+ Hitting APUs in 2029
• Neutral Sentiment: Investors are focused on AI demand, the Helios systems ramp and fourth-quarter guidance. Options markets imply a sizable post-earnings move—about 7%—so results or outlook could quickly change sentiment. Article: AMD Expected to Move 7% Following Earnings
• Negative Sentiment: Risks remain after a steep recent selloff: investors are questioning whether AI commitments can translate into growth quickly enough, while PC-demand concerns and AMD’s rich valuation heighten the stakes for its outlook. Article: AMD Fell 16% in a Month Before Earnings

Analysts Set New Price Targets

AMD has been the topic of several recent research reports. BMO Capital Markets started coverage on shares of Advanced Micro Devices in a research report on Thursday, August 20th. They issued an “outperform” rating and a $550.00 price objective on the stock. The Goldman Sachs Group raised their target price on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a report on Monday, July 6th. Wall Street Zen cut shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research report on Saturday. Jefferies Financial Group restated a “buy” rating on shares of Advanced Micro Devices in a research report on Thursday. Finally, Weiss Ratings raised shares of Advanced Micro Devices from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $608.78.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,262 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the transaction, the executive vice president owned 353,317 shares of the company’s stock, valued at $191,038,501.90. This represents a 4.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. The trade was a 2.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 231,100 shares of company stock valued at $114,867,400. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors have recently added to or reduced their stakes in AMD. BlackRock Inc. grew its holdings in shares of Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. State Street Corp increased its position in Advanced Micro Devices by 2.9% during the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after purchasing an additional 2,149,563 shares in the last quarter. Bank of America Corp DE acquired a new position in Advanced Micro Devices during the second quarter valued at approximately $7,022,226,000. Jennison Associates LLC grew its stake in Advanced Micro Devices by 5.8% during the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after buying an additional 545,575 shares during the period. Finally, Wellington Management Group LLP grew its stake in Advanced Micro Devices by 33.9% during the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after buying an additional 2,365,419 shares during the period. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Trading Up 3.7%

The firm’s 50 day simple moving average is $548.16 and its 200-day simple moving average is $410.43. The company has a market capitalization of $789.95 billion, a PE ratio of 124.40, a P/E/G ratio of 5.94 and a beta of 2.45. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.