Advanced Micro Devices (NASDAQ:AMD) Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of Advanced Micro Devices (NASDAQ:AMD) from a buy rating to a hold rating in a report issued on Saturday morning,Wall Street Zen reports.

AMD has been the subject of several other research reports. DA Davidson raised their price target on Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Citigroup upgraded shares of Advanced Micro Devices from a “market perform” rating to a “buy” rating in a report on Wednesday, July 22nd. Raymond James Financial raised shares of Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and increased their price objective for the company from $565.00 to $641.00 in a research report on Tuesday, August 25th. The Goldman Sachs Group lifted their target price on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Finally, Argus boosted their target price on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Three 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.com, Advanced Micro Devices has a consensus rating of “Moderate Buy” and a consensus price target of $567.62.

Advanced Micro Devices Stock Performance

Shares of AMD stock opened at $607.87 on Friday. Advanced Micro Devices has a 12-month low of $159.33 and a 12-month high of $639.00. The business’s fifty day simple moving average is $506.44 and its 200-day simple moving average is $434.30. 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 cap of $992.33 billion, a PE ratio of 156.26, a PEG ratio of 6.54 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share 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 firm had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter last year, the firm earned $0.48 EPS. The business’s quarterly revenue was up 50.1% on a year-over-year basis. Analysts expect that Advanced Micro Devices will post 6.43 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Grasby sold 15,000 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the transaction, the executive vice president owned 117,687 shares in the company, valued at approximately $60,598,213.17. This represents a 11.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Lisa T. Su sold 70,000 shares of the firm’s 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 transaction, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at $1,536,696,660.80. This represents a 2.26% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 213,838 shares of company stock valued at $105,533,836. 0.50% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently made changes to their positions in AMD. Sarver Vrooman Wealth Advisors acquired a new stake in Advanced Micro Devices during the 4th quarter worth about $27,000. Cornerstone Financial Management LLC purchased a new position in shares of Advanced Micro Devices during the 4th quarter valued at about $27,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at about $30,000. JNBA Financial Advisors lifted its holdings 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 buying an additional 30 shares during the period. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices in the first quarter worth about $31,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD agreed to acquire World Labs, an AI research company founded by renowned researcher Fei-Fei Li, in an approximately $8.2 billion all-stock transaction. World Labs develops “world models” that understand and generate 3D environments, with applications in physical AI, robotics and simulation. Li will join AMD as executive vice president and chief scientist. The deal gives AMD additional AI research talent and could help it compete more directly with Nvidia in complete AI systems and infrastructure. AMD to acquire Fei-Fei Li’s World Labs in $8.2 billion deal
• Positive Sentiment: The acquisition expands AMD’s exposure beyond chips into AI models, software and robotics, potentially strengthening demand for its CPUs and GPUs as AI inference moves into physical-world and edge applications. Recent commentary also remains optimistic that agentic AI could support demand for AMD’s high-end processors. AMD briefly joined the $1 trillion club
• Neutral Sentiment: Because the transaction is all stock, AMD avoids a significant cash outlay, but issuing shares could dilute existing shareholders. Investors must also assess whether World Labs’ technology can be commercialized and integrated effectively at the deal’s substantial valuation. AMD stock and World Labs deal
• Negative Sentiment: AMD remains vulnerable to profit-taking after a powerful AI-driven rally and a recent move above a $1 trillion market capitalization. Higher Treasury yields and oil prices have pressured richly valued technology stocks, while investors are reconsidering the pace and durability of AI infrastructure spending. AMD slides as chip-sector sentiment cools
• Negative Sentiment: Competition remains intense: commentary highlights Broadcom’s rapidly growing custom-AI-chip business, while local AI agents could shift some inference workloads from cloud providers to personal computers, creating execution pressure for AMD’s AI strategy. AMD’s elevated valuation and reported insider selling add further risk for investors. Broadcom’s custom silicon business

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

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