Advanced Micro Devices (NASDAQ:AMD) Shares Up 11% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 11% during trading on Friday. The stock traded as high as $459.80 and last traded at $449.04. 45,261,630 shares traded hands during mid-day trading, an increase of 41% from the average session volume of 32,018,225 shares. The stock had previously closed at $404.40.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD joined a broad semiconductor rebound as investors bought beaten-down chip stocks. The recovery followed a severe sector selloff, and analysts cautioned that volatility may persist. Nvidia, AMD and other chip stocks rebound. Is the ‘violent’ AI selloff over?
• Positive Sentiment: CEO Lisa Su called the market’s reaction to AI spending “short-sighted,” while saying AMD has good visibility into customer data-center capacity needs through 2027. Reports also point to expectations for accelerating AI business growth next year. AMD CEO Lisa Su Addresses AI Infrastructure Bottleneck Fears
• Positive Sentiment: Recent quarterly results beat analyst expectations, with revenue up 44.7% year over year; data-center revenue nearly doubled, strengthening the growth case behind the rebound. AMD Tops Q3 Earnings, Data Center Revenues Up 97%
• Negative Sentiment: A Seeking Alpha contributor downgraded AMD to Hold, citing a premium valuation, intensifying competition from Nvidia and Arm, and possible multiple compression if sector sentiment weakens. AMD: This Selloff Isn’t Enough (Downgrade)
• Negative Sentiment: The broader AI-chip selloff reflects concerns about regulation, data-center investment costs and whether AI spending will deliver adequate returns. Those worries could keep AMD shares volatile despite its strong operating outlook. AI stocks hammered by midterm shock as data center buildout becomes a war of attrition

Analyst Ratings Changes

Several equities research analysts have issued reports on AMD shares. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Advanced Micro Devices in a research note on Wednesday. HSBC reissued a “hold” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a research note on Thursday. Rosenblatt Securities restated a “buy” rating and set a $700.00 price target on shares of Advanced Micro Devices in a research report on Wednesday. Wells Fargo & Company lowered their price target on shares of Advanced Micro Devices from $700.00 to $650.00 and set an “overweight” rating on the stock in a research report on Wednesday. Finally, Roth Capital upped their price objective on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus price target of $633.17.

Advanced Micro Devices Stock Up 11.0%

The firm has a market capitalization of $733.04 billion, a price-to-earnings ratio of 97.62, a P/E/G ratio of 5.01 and a beta of 2.49. The business has a 50 day simple moving average of $547.37 and a 200-day simple moving average of $413.90. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.91 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, topping the consensus estimate of $1.95 by $0.14. The business had revenue of $13.38 billion for the quarter, compared to analyst estimates of $13.10 billion. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The company’s quarterly revenue was up 44.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.20 EPS. On average, equities analysts expect that Advanced Micro Devices, Inc. will post 6.50 EPS for the current year.

Insider Activity

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,262 shares of Advanced Micro Devices stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the transaction, the executive vice president directly owned 353,317 shares of the company’s stock, valued at $191,038,501.90. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the transaction, the executive vice president owned 160,979 shares in the company, valued at $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. 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. Insiders sold 231,100 shares of company stock valued at $114,867,400 in the last quarter. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. DecisionPoint Financial LLC increased its holdings in Advanced Micro Devices by 79.2% in the 3rd quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 19 shares during the last quarter. MJT & Associates Financial Advisory Group Inc. purchased a new stake in Advanced Micro Devices in the third quarter valued at approximately $29,000. JNBA Financial Advisors lifted its stake in Advanced Micro Devices by 142.9% during the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Graney & King LLC purchased a new position in shares of Advanced Micro Devices during the first quarter worth $31,000. Finally, Main Street Group LTD purchased a new position in shares of Advanced Micro Devices during the first quarter worth $33,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors.

The company’s product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.