BMO Capital Markets Upgrades Advanced Micro Devices (NASDAQ:AMD) to Strong-Buy

Advanced Micro Devices (NASDAQ:AMD) was upgraded by equities researchers at BMO Capital Markets to a “strong-buy” rating in a report released on Thursday,Zacks.com reports.

AMD has been the subject of several other reports. Wells Fargo & Company increased their price objective on shares of Advanced Micro Devices from $615.00 to $700.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Stifel Nicolaus boosted their target price on Advanced Micro Devices from $450.00 to $635.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Wall Street Zen downgraded Advanced Micro Devices from a “buy” rating to a “hold” rating in a research report on Saturday, August 15th. Wedbush restated an “outperform” rating and issued a $600.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $650.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Four analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $546.95.

Advanced Micro Devices Trading Up 0.8%

NASDAQ:AMD opened at $473.25 on Thursday. Advanced Micro Devices has a 1 year low of $149.22 and a 1 year high of $584.73. The business has a fifty day moving average of $511.40 and a 200-day moving average of $375.55. 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 stock has a market cap of $772.57 billion, a price-to-earnings ratio of 121.66 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company’s quarterly revenue was up 50.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.48 earnings per share. Equities analysts predict that Advanced Micro Devices will post 6.44 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Mark D. Papermaster sold 28,811 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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 firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the sale, the executive vice president owned 117,687 shares of the company’s stock, valued at $60,598,213.17. The trade was a 11.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 210,763 shares of company stock worth $99,912,107. 0.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently modified their holdings of the stock. Southpoint Capital Advisors LP grew its holdings in shares of Advanced Micro Devices by 50.0% during the first quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock valued at $183,087,000 after buying an additional 300,000 shares in the last quarter. Jefferies Financial Group Inc. raised its position in Advanced Micro Devices by 6,228.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after buying an additional 303,154 shares during the period. Boomfish Wealth Group LLC purchased a new stake in Advanced Micro Devices in the 1st quarter worth about $1,193,000. Dimensional Fund Advisors LP lifted its stake in Advanced Micro Devices by 6.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock worth $1,045,954,000 after acquiring an additional 291,165 shares in the last quarter. Finally, Williamson Legacy Group LLC acquired a new stake in Advanced Micro Devices during the 4th quarter worth about $1,118,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: BMO initiated coverage of AMD with a buy recommendation, adding to bullish Wall Street sentiment toward the semiconductor sector and AMD’s AI opportunity. BMO Buy Ratings for Semiconductor Stocks
• Positive Sentiment: AMD continues to show stronger and more consistent revenue growth than Arm Holdings. Its latest quarter included record revenue of $11.54 billion, up 50.1% year over year, and earnings that exceeded analyst expectations. AMD and Arm Revenue Comparison
• Positive Sentiment: Reports that Google may collaborate with AMD on its next-generation TPU could represent a meaningful design win and broaden AMD’s relationships with hyperscalers. Coatue Management’s new position, valued at approximately $55.8 million, also signals institutional interest in the AI trade. Google Reportedly Working With AMD on a TPU
• Neutral Sentiment: AMD is increasingly viewed as Nvidia’s most credible AI-chip challenger, particularly with its Helios platform, but investors remain focused on whether it can narrow Nvidia’s ecosystem and market-share advantages. AMD and Nvidia AI Competition
• Negative Sentiment: Google’s expanding custom-chip program, including its relationship with Marvell, could increase competition for AI-inference workloads. A report that SpaceX selected Nvidia’s Vera Rubin platform reinforces concerns that AMD is still losing some high-profile AI infrastructure opportunities. SpaceX Selects Nvidia AI Infrastructure
• Negative Sentiment: CEO Lisa Su and SVP Ava Hahn sold shares totaling roughly $8.7 million. The transactions were made under pre-arranged Rule 10b5-1 plans, limiting their signaling value, but the sales may still weigh on sentiment after AMD’s substantial rally. AMD Insider Stock Sale
• Negative Sentiment: Valuation remains a risk: AMD trades at a very high earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if AI growth slows or fails to meet aggressive expectations. AMD Valuation Analysis

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.