Advanced Micro Devices (NASDAQ:AMD) Reaches New 52-Week High – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares hit a new 52-week high on Monday . The stock traded as high as $604.25 and last traded at $608.7330, with a volume of 8365269 shares trading hands. The stock had previously closed at $559.82.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AI demand drives milestone: AMD surpassed a $1 trillion market capitalization for the first time, reflecting investor expectations that its Instinct accelerators and server processors will capture a larger share of the expanding AI-computing market. Reuters article
• Positive Sentiment: Potential pricing power: A supply-chain report said AMD plans to raise chip prices by approximately 10% in the fourth quarter because of higher wafer costs. The move could support revenue and margins if customers accept the increases, while also signaling strong demand. 247WallSt article
• Positive Sentiment: Enterprise AI validation: MindWalk said AMD Instinct MI325X GPUs accelerated antibody-antigen inference by roughly five times in its OpenFold3 deployment, providing another example of AMD hardware being used in production AI workloads. Financial Post article
• Positive Sentiment: Favorable market backdrop: Lower crude prices and Treasury yields improved risk appetite, helping lift semiconductor and other AI-related stocks after the prior week’s volatility. Invezz article
• Neutral Sentiment: Technical momentum is strong but stretched: AMD has gained more than 160% this year and reached a new all-time high, keeping momentum traders engaged. However, Elliott Wave analysis warns that a complex corrective pullback could develop after the extended rally. See It Market article
• Negative Sentiment: Valuation and profit-taking risks remain: Commentators caution that AMD’s valuation may already price in substantial AI growth, while ARK Innovation ETF reduced its AMD position to fund a larger Archer Aviation investment. The Motley Fool article

Analyst Upgrades and Downgrades

AMD has been the topic of a number of recent analyst reports. BMO Capital Markets initiated coverage on Advanced Micro Devices in a research note on Thursday, August 20th. They set an “outperform” rating and a $550.00 price target on the stock. Roth Capital upped their target price on Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Argus increased their target price on Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. The Goldman Sachs Group increased their target price on Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Finally, Raymond James Financial raised Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and raised their price target for the stock from $565.00 to $641.00 in a research note on Tuesday, August 25th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Price Performance

The company’s 50 day moving average price is $494.24 and its 200-day moving average price is $416.47. The company has a market capitalization of $1.00 trillion, a PE ratio of 157.21, a PEG ratio of 5.81 and a beta of 2.48. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results 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. 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 for the quarter, compared to analyst estimates of $11.31 billion. During the same period last year, the company posted $0.48 EPS. The business’s quarterly revenue was up 50.1% on a year-over-year basis. On average, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In other news, CEO Lisa Su sold 25,000 shares of the firm’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.79, for a total value of $12,669,750.00. Following the transaction, the chief executive officer directly owned 74,211 shares in the company, valued at $37,609,392.69. This trade represents a 25.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the transaction, the executive vice president directly owned 160,979 shares in the company, valued at $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 213,838 shares of company stock valued at $105,533,836 over the last three months. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors have recently bought and sold shares of the business. JNBA Financial Advisors raised its stake in shares of Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after acquiring an additional 30 shares during the period. Bullseye Investment Management LLC acquired a new position in shares of Advanced Micro Devices during the 2nd quarter valued at $44,000. Luminist Capital LLC purchased a new stake in Advanced Micro Devices during the 2nd quarter worth $46,000. BOK Financial Private Wealth Inc. purchased a new stake in Advanced Micro Devices during the 2nd quarter worth $53,000. Finally, Toews Corp ADV acquired a new stake in Advanced Micro Devices in the 2nd quarter valued at $66,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.