Advanced Micro Devices (NASDAQ:AMD) Shares Up 2.8% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 2.8% on Monday. The company traded as high as $533.50 and last traded at $531.28. 16,638,203 shares traded hands during trading, a decline of 48% from the average daily volume of 31,835,756 shares. The stock had previously closed at $516.79.

Key Advanced Micro Devices News

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

• Positive Sentiment: Meta’s AI spending plans support demand. Meta Platforms plans to raise up to $95 billion to fund AI infrastructure, including approximately $35 billion in initial offerings and a potential $60 billion stock-sale program in 2027. Nvidia, AMD and Broadcom have expressed nonbinding interest in purchasing up to $5 billion of Meta shares collectively, highlighting AMD’s strategic relationship with a major AI customer. Meta plans $95bn stock offering to bankroll AI expansion
• Positive Sentiment: Server CPU demand is a key earnings catalyst. Wedbush analysts see rising AI-computing requirements supporting AMD’s EPYC server CPU business, potentially providing upside to revenue and earnings expectations before the company reports. Wedbush sees server CPU demand as key earnings growth driver
• Positive Sentiment: Investors are increasingly viewing AMD as an AI beneficiary. Commentary points to AMD’s opportunity as the AI market becomes more diversified, with demand extending beyond Nvidia’s dominant position to alternative accelerators, CPUs and inference hardware. As AI becomes more fractured, one name stands out: AMD
• Neutral Sentiment: AMD’s November 3 earnings report is the next major test. Analysts are watching EPYC server demand, AI accelerator adoption and customer announcements. AMD’s latest reported quarter showed 50.1% year-over-year revenue growth and an earnings beat, but expectations are now elevated.
• Negative Sentiment: Valuation and competitive risks remain significant. AMD has already experienced a substantial rally and trades at a premium valuation, while Nvidia retains much greater data-center scale and profitability. Investors also face competition from Broadcom, Marvell, Cerebras and custom AI-chip programs. The gap with Nvidia could shape AMD’s next big move

Analysts Set New Price Targets

Several research firms have commented on AMD. CLSA reissued an “outperform” rating and issued a $710.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, September 9th. UBS Group restated an “overweight” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Zacks Research lowered shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 1st. BMO Capital Markets started coverage on shares of Advanced Micro Devices in a report on Thursday, August 20th. They issued an “outperform” rating and a $550.00 price objective for the company. Finally, JPMorgan Chase & Co. raised their target price on Advanced Micro Devices from $385.00 to $550.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Three investment 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 assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $606.76.

Advanced Micro Devices Stock Up 2.8%

The firm has a market capitalization of $867.30 billion, a price-to-earnings ratio of 136.58, a price-to-earnings-growth ratio of 5.30 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The business’s 50 day moving average is $541.54 and its 200-day moving average is $485.30.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The company had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business’s quarterly revenue was up 50.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.48 earnings per share. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa Su sold 70,000 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the completion of the sale, the chief executive officer owned 3,032,156 shares in the company, valued at $1,536,696,660.80. This represents a 2.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% 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. Insiders have sold 231,100 shares of company stock worth $114,867,400 in the last ninety days. 0.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently modified their holdings of AMD. Bank of America Corp DE acquired a new position in Advanced Micro Devices during the 2nd quarter valued at $7,022,226,000. BlackRock Inc. boosted its holdings in Advanced Micro Devices by 3.1% in the 2nd 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 period. Jupiter Topco LLC bought a new stake in Advanced Micro Devices in the 2nd quarter valued at $2,084,651,000. Wellington Management Group LLP grew its position in Advanced Micro Devices by 33.9% in the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after purchasing an additional 2,365,419 shares during the last quarter. Finally, State Street Corp grew its position in Advanced Micro Devices by 2.9% in the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after purchasing an additional 2,149,563 shares during the last quarter. Institutional investors and hedge funds 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 high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.