Advanced Micro Devices (NASDAQ:AMD) Shares Gap Up – Time to Buy?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) gapped up before the market opened on Tuesday . The stock had previously closed at $196.60, but opened at $211.63. Advanced Micro Devices shares last traded at $211.6280, with a volume of 29,413,599 shares traded.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Landmark Meta multi‑year agreement (up to 6GW of MI450 GPUs) validates AMD’s data‑center roadmap and implies a multi‑year revenue stream and tighter hyperscaler relationships. This remains the primary bullish fundamental catalyst priced into the stock. Meta‑AMD Deal Analysis
• Positive Sentiment: Wall Street momentum and upgrades: multiple firms have raised price targets or reiterated buy/outperform views after the Meta deal and AMD’s Q4 beat — supporting medium/long‑term upside expectations (but analysts remain split on timing and execution risk).
• Positive Sentiment: Product & ecosystem traction: Super Micro launched an EPYC‑powered high‑density blade (expands server OEM adoption) and smaller partners/ISVs are joining AMD’s AI programs — incremental wins that support deployment momentum. Super Micro/EPYC Product News
• Neutral Sentiment: Strategic investments/partnerships (e.g., Nutanix collaboration and reported AMD purchase of Nutanix stock) broaden ecosystem exposure but add complexity to near‑term capital flows and model assumptions.
• Negative Sentiment: Nvidia’s strong Q4 and upbeat guidance are re‑accelerating investor preference for NVDA and highlighting Nvidia’s advantage in inference — that dynamic is pressuring AMD’s multiple and prompting short‑term profit‑taking. Nvidia Q4 Impact
• Negative Sentiment: Dilution and “circular finance” concerns from the Meta agreement (performance‑based warrants giving Meta optionality into AMD equity) are raising questions about eventual share dilution and how revenue is recognized — a key reason some investors trimmed positions.
• Negative Sentiment: Near‑term revenue concerns: some investors are skeptical about hyperscalers’ immediate spend (OpenAI/META cadence uncertainty) and flagged that parts of the Q4 beat included one‑off China demand, fueling today’s cautious selling. Revenue/Investor Doubt Coverage
• Negative Sentiment: Social/insider signals: online debate around warrant economics, some analyst warnings and visible insider selling data have amplified short‑term nervousness. Social & Insider Discussion

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on AMD shares. Jefferies Financial Group reaffirmed a “buy” rating on shares of Advanced Micro Devices in a research report on Tuesday. Susquehanna restated a “positive” rating and issued a $300.00 price target on shares of Advanced Micro Devices in a research note on Friday, October 31st. Royal Bank Of Canada reiterated a “sector perform” rating and set a $230.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday. UBS Group set a $310.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, February 4th. Finally, The Goldman Sachs Group boosted their target price on shares of Advanced Micro Devices from $210.00 to $240.00 and gave the stock a “neutral” rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $290.53.

Advanced Micro Devices Price Performance

The company’s 50-day moving average price is $219.80 and its two-hundred day moving average price is $207.83. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.85 and a quick ratio of 2.01. The company has a market capitalization of $331.40 billion, a P/E ratio of 76.73, a price-to-earnings-growth ratio of 0.81 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 EPS for the quarter, topping the consensus estimate of $1.32 by $0.21. The business had revenue of $10.27 billion during the quarter, compared to the consensus estimate of $9.65 billion. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. Advanced Micro Devices’s revenue was up 34.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.09 EPS. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Insider Activity at Advanced Micro Devices

In related news, SVP Ava Hahn sold 2,442 shares of the company’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $234.42, for a total transaction of $572,453.64. Following the completion of the sale, the senior vice president owned 16,359 shares of the company’s stock, valued at $3,834,876.78. This represents a 12.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $215.14, for a total transaction of $26,892,500.00. Following the completion of the transaction, the chief executive officer owned 3,277,476 shares of the company’s stock, valued at $705,116,186.64. The trade was a 3.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 271,892 shares of company stock valued at $58,476,908 over the last quarter. 0.06% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AMD. Norges Bank bought a new stake in Advanced Micro Devices during the 4th quarter valued at $4,929,312,000. Jennison Associates LLC lifted its position in Advanced Micro Devices by 181.6% in the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock valued at $2,336,552,000 after acquiring an additional 7,035,991 shares in the last quarter. Cardano Risk Management B.V. acquired a new position in Advanced Micro Devices during the 4th quarter valued at about $1,000,783,000. Wellington Management Group LLP lifted its holdings in shares of Advanced Micro Devices by 335.9% in the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock valued at $784,330,000 after purchasing an additional 3,735,807 shares in the last quarter. Finally, Franklin Resources Inc. boosted its position in shares of Advanced Micro Devices by 340.1% during the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $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.

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.