Advanced Micro Devices (NASDAQ:AMD) Trading 4.9% Higher – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price rose 4.9% on Tuesday . The company traded as high as $481.50 and last traded at $479.18. Approximately 18,881,404 shares traded hands during trading, a decline of 46% from the average session volume of 34,916,367 shares. The stock had previously closed at $456.74.

Key Advanced Micro Devices News

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

• Positive Sentiment: Raymond James upgraded AMD to Strong Buy, citing improving competitive positioning, expected data-center growth and the potential for AMD to outperform Nvidia in certain CPU and AI markets. The firm’s bullish outlook helped reinforce investor confidence. AMD Stock Gets Strong Buy Upgrade From Raymond James
• Positive Sentiment: BMO Capital initiated coverage with a $550 price target, pointing to AMD’s roughly 50% year-over-year revenue growth, major AI customer commitments and the approaching Helios AI platform launch. Other analysts also see additional upside, with several targets above $600. BMO Capital Initiates AMD Coverage
• Positive Sentiment: AMD’s announcement that its Versal adaptive SoCs will add UCIe connectivity supports a more open, modular chiplet ecosystem. Investors viewed the update as beneficial for AMD’s embedded and AI product strategy. AMD Stock Rallies on UCIe Chip Update
• Positive Sentiment: Coverage highlighted AMD’s expanding relationships with OpenAI and Meta, which could validate its Instinct GPUs as a large-scale alternative to Nvidia’s accelerators. Analysts also see an opportunity from AI data centers requiring more high-performance CPUs. AMD Is Winning Nvidia Customers
• Positive Sentiment: Strength across AI-linked semiconductor stocks, including Marvell, Nvidia and Micron, lifted exchange-traded funds holding AMD and contributed to supportive sector momentum. SPY Gains on AMD Stock Movement
• Neutral Sentiment: Nvidia’s upcoming earnings and guidance remain an important near-term catalyst for AMD. Strong AI demand commentary could support AMD, while evidence of Nvidia maintaining its lead could pressure the broader accelerator trade. Nvidia Earnings Could Move AI Stocks
• Negative Sentiment: Quiver Quantitative data showed 99 reported AMD insider sales during the past six months, with no purchases; CEO Lisa Su accounted for a significant portion. Such selling may raise concerns about valuation and insider conviction, although transactions can reflect compensation or diversification. AMD Insider Trading Activity
• Negative Sentiment: AMD’s elevated valuation leaves limited room for execution disappointments. Recent debt issuance and plans to invest more than $10 billion in Taiwan packaging and AI manufacturing capacity could increase leverage and near-term capital-spending risk, even as they support long-term growth. AMD Debt Raise and Taiwan AI Push

Wall Street Analysts Forecast Growth

Several research analysts have commented on AMD shares. Sanford C. Bernstein restated an “outperform” rating and set a $650.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Robert W. Baird set a $1,250.00 price target on Advanced Micro Devices in a research note on Friday, July 24th. Wedbush reissued an “outperform” rating and set a $600.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Bank of America raised their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Finally, The Goldman Sachs Group lifted their target price on Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a research report on Monday, July 6th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two 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 MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $553.72.

Advanced Micro Devices Stock Up 4.9%

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $782.25 billion, a P/E ratio of 123.18 and a beta of 2.48. The stock has a 50 day moving average price of $509.59 and a 200 day moving average price of $377.97.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter in the prior year, the firm earned $0.48 EPS. The business’s revenue for the quarter was up 50.1% compared to the same quarter last year. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Paul Darren Grasby sold 15,000 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the sale, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. This trade represents a 11.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the sale, the director directly owned 87,173 shares in the company, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 210,763 shares of company stock worth $99,912,107 over the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds have recently bought and sold shares of AMD. Brighton Jones LLC lifted its position in Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after acquiring an additional 29,438 shares in the last quarter. Revolve Wealth Partners LLC increased its holdings in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock worth $1,001,000 after purchasing an additional 234 shares in the last quarter. Sivia Capital Partners LLC raised its stake in shares of Advanced Micro Devices by 125.1% in the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after purchasing an additional 2,970 shares during the last quarter. United Bank lifted its holdings in shares of Advanced Micro Devices by 22.0% during the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after purchasing an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its position in shares of Advanced Micro Devices by 361.0% during the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock valued at $1,310,000 after buying an additional 7,228 shares during the last quarter. Institutional investors own 71.34% of the company’s stock.

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.