Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.4% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares shot up 2.4% during mid-day trading on Thursday. The stock traded as high as $630.80 and last traded at $629.26. Approximately 25,101,694 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 33,344,207 shares. The stock had previously closed at $614.61.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Bank of America raised its price target from $620 to $720 and maintained a Buy rating. The firm believes AMD’s server CPU total addressable market could nearly triple to $211 billion by 2030 as AI agents increase demand for computing infrastructure. BofA raises AMD target to $720
• Positive Sentiment: Perplexity collaboration supports AMD’s PC AI strategy. New tools are designed to make Perplexity’s AI capabilities easier to run locally on Ryzen-powered PCs, reinforcing the potential for edge AI and personal-agent workloads to drive CPU demand. AMD Stock Rises After Introducing New AI Tools from Perplexity
• Positive Sentiment: AI momentum remains the primary catalyst. Analysts and market commentators point to AMD’s EPYC server CPUs, AI accelerators, Helios rack systems, and potential edge-computing demand as avenues for the company to participate in the broader AI infrastructure cycle. Some forecasts reach $750 per share.
• Positive Sentiment: Technical and industry momentum is attracting buyers. AMD broke above key resistance, while rising demand for AI chips and optimism surrounding CPU makers helped lift semiconductor stocks broadly.
• Neutral Sentiment: AMD’s $1 trillion valuation is both a milestone and a test. The company’s roughly 189% year-to-date advance reflects strong investor enthusiasm, but the milestone means future AI deployments, revenue growth, and margins must meet very high expectations.
• Negative Sentiment: Valuation concerns could limit further upside. Commentary highlights AMD’s high forward earnings multiple and argues that Nvidia remains larger, more profitable, and further ahead in shipping full AI systems. Elevated Treasury yields could also pressure richly valued technology stocks.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Royal Bank Of Canada reiterated a “sector perform” rating and set a $540.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. JPMorgan Chase & Co. increased their price objective on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. CLSA reiterated an “outperform” rating and issued a $710.00 target price on shares of Advanced Micro Devices in a report on Wednesday, September 9th. Cantor Fitzgerald restated an “overweight” rating and set a $700.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 1st. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $567.62.

Advanced Micro Devices Stock Performance

The firm has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 162.11, a PEG ratio of 6.53 and a beta of 2.48. The firm has a 50 day moving average price of $504.35 and a 200-day moving average price of $429.85. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.Advanced Micro Devices’s revenue for the quarter was up 50.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.48 EPS. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Mark 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 value of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 that occurred on Tuesday, August 25th. The stock was 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 of the company’s stock, valued at $76,316,924.32. This represents a 8.52% decrease in their position. 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. In the last three months, insiders sold 213,838 shares of company stock valued at $105,533,836. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several large investors have recently bought and sold shares of the business. Norges Bank acquired a new stake in shares of Advanced Micro Devices during the 4th quarter worth about $4,929,312,000. Bank of America Corp DE acquired a new position in Advanced Micro Devices in the second quarter valued at approximately $7,022,226,000. Cardano Risk Management B.V. purchased a new position in Advanced Micro Devices in the fourth quarter valued at approximately $1,000,783,000. BlackRock Inc. increased its stake in Advanced Micro Devices by 3.1% in the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the last quarter. Finally, Franklin Resources Inc. raised its holdings in Advanced Micro Devices by 340.1% during the fourth quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after purchasing an additional 3,669,054 shares in the last quarter. Hedge funds and other institutional investors own 71.34% of the company’s stock.

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.