Advanced Micro Devices (NASDAQ:AMD) Shares Up 13.3% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 13.3% during mid-day trading on Monday. The stock traded as high as $515.18 and last traded at $508.58. 50,752,665 shares changed hands during trading, an increase of 58% from the average daily volume of 32,132,826 shares. The stock had previously closed at $449.04.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD’s 5th Gen EPYC processors will provide host infrastructure for Google Cloud’s TPU 8tx AI system. The win reinforces AMD’s role in large-scale AI deployments, though it is supplying CPUs rather than Google’s TPU chips. Article: AMD Expands Work With Google to Power Host Infrastructure for Cloud TPU
• Positive Sentiment: Oppenheimer upgraded AMD to Outperform from Market Perform and set a $600 price target. Analyst Rick Schafer also sees data-center sales growing 135% next year, citing AI demand despite supply constraints. Article: AMD shares are primed for a comeback, says Oppenheimer
• Positive Sentiment: Recent quarterly results provided a strong fundamental backdrop: revenue rose 45% year over year to a record $13.4 billion, while data-center revenue increased 97%. Management’s outlook for more than 80% revenue growth in 2027 has helped ease concerns about AI spending. Article: AMD: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: AMD also benefited from a broader tech rally as Nvidia shares fell amid reports of scrutiny involving its CEO. Analysts cautioned that chipmakers could face greater scrutiny of sales practices, making this a less certain source of support. Article: Are AMD and Broadcom the real winners of the Nvidia spy scandal?
• Negative Sentiment: Some coverage flagged elevated inventory and valuation as risks to sustaining the rally, particularly if growth or execution falls short of expectations. A reported Radeon GPU glitch affecting SSD lifespan is another product concern, although it did not prevent shares from advancing. Article: AMD Just Eased Wall Street’s AI Spending Scare

Analysts Set New Price Targets

A number of equities research analysts recently commented on AMD shares. Rosenblatt Securities restated a “buy” rating and issued a $700.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Piper Sandler boosted their target price on Advanced Micro Devices from $600.00 to $650.00 and gave the stock an “overweight” rating in a research report on Wednesday, November 4th. BMO Capital Markets initiated coverage on Advanced Micro Devices in a report on Thursday, August 20th. They issued an “outperform” rating and a $550.00 price target for the company. CLSA reissued an “outperform” rating and issued a $710.00 price target on shares of Advanced Micro Devices in a report on Wednesday, September 9th. Finally, TD Cowen restated a “buy” rating on shares of Advanced Micro Devices in a research note on Monday, October 19th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $642.47.

Advanced Micro Devices Trading Up 13.3%

The company has a quick ratio of 1.93, a current ratio of 2.72 and a debt-to-equity ratio of 0.10. The business’s fifty day moving average is $546.81 and its 200 day moving average is $414.98. The stock has a market cap of $834.12 billion, a PE ratio of 110.56, a P/E/G ratio of 4.54 and a beta of 2.49.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.95 by $0.14. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. The company had revenue of $13.38 billion during the quarter, compared to analysts’ expectations of $13.10 billion. During the same period last year, the company posted $1.20 earnings per share. The firm’s quarterly revenue was up 44.7% compared to the same quarter last year. As a group, analysts predict that Advanced Micro Devices, Inc. will post 6.59 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 25,000 shares of Advanced Micro Devices stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the completion of the transaction, the chief executive officer directly owned 74,211 shares of the company’s stock, valued at approximately $37,609,392.69. The trade was a 25.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of Advanced Micro Devices stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 231,100 shares of company stock worth $114,867,400. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Large investors have recently bought and sold shares of the company. Bessemer Group Inc. increased its position in shares of Advanced Micro Devices by 9.6% in the third quarter. Bessemer Group Inc. now owns 1,306,094 shares of the semiconductor manufacturer’s stock valued at $799,017,000 after buying an additional 114,673 shares in the last quarter. Hantz Financial Services Inc. raised its stake in shares of Advanced Micro Devices by 7.8% during the 3rd quarter. Hantz Financial Services Inc. now owns 17,975 shares of the semiconductor manufacturer’s stock worth $10,996,000 after buying an additional 1,294 shares during the last quarter. Ground Swell Capital LLC purchased a new stake in shares of Advanced Micro Devices in the 3rd quarter worth about $251,000. FDx Advisors Inc. purchased a new stake in shares of Advanced Micro Devices in the 3rd quarter worth about $503,000. Finally, Pensioenfonds Rail & OV purchased a new stake in shares of Advanced Micro Devices in the 3rd quarter worth about $3,509,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

About Advanced Micro Devices

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.