Advanced Micro Devices (NASDAQ:AMD) Shares Up 3.7% on Earnings Beat

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 3.7% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $497.40 and last traded at $483.90. Approximately 29,981,579 shares were traded during trading, a decline of 5% from the average session volume of 31,645,783 shares. The stock had previously closed at $466.84.

The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The business had revenue of $13.38 billion during the quarter, compared to the consensus estimate of $13.10 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: A broader bounce in semiconductor stocks is supporting AMD after a sharp sector selloff. Article: AMD Advances as Chip Stocks Bounce Ahead of Earnings
• Positive Sentiment: Reports of a possible RDNA 5+ graphics architecture reaching AMD’s APUs in 2029 have added speculative product excitement, though the timeline is not confirmed. Article: AMD Stock Rallies on Reports of RDNA 5+ Hitting APUs in 2029
• Neutral Sentiment: Investors are focused on AI demand, the Helios systems ramp and fourth-quarter guidance. Options markets imply a sizable post-earnings move—about 7%—so results or outlook could quickly change sentiment. Article: AMD Expected to Move 7% Following Earnings
• Negative Sentiment: Risks remain after a steep recent selloff: investors are questioning whether AI commitments can translate into growth quickly enough, while PC-demand concerns and AMD’s rich valuation heighten the stakes for its outlook. Article: AMD Fell 16% in a Month Before Earnings

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AMD shares. Morgan Stanley lifted their price target on shares of Advanced Micro Devices from $465.00 to $510.00 and gave the company an “equal weight” rating in a research report on Monday. UBS Group restated an “overweight” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Citigroup raised their target price on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. The Goldman Sachs Group lifted their target price on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a report on Monday, July 6th. Finally, Piper Sandler assumed coverage on shares of Advanced Micro Devices in a report on Tuesday, September 15th. They set an “overweight” rating and a $600.00 target price for the company. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $608.78.

Insider Activity at Advanced Micro Devices

In other news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president 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 transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,262 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total value of $9,333,563.40. Following the sale, the executive vice president owned 353,317 shares in the company, valued at approximately $191,038,501.90. This represents a 4.66% 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. Insiders sold a total of 231,100 shares of company stock worth $114,867,400 in the last ninety days. 0.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently made changes to their positions in the business. DecisionPoint Financial LLC grew its position in Advanced Micro Devices by 79.2% during the third quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. purchased a new position in Advanced Micro Devices in the third quarter valued at about $29,000. JNBA Financial Advisors increased its holdings in Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after buying an additional 30 shares in the last quarter. Downshift Financial LLC lifted its position in shares of Advanced Micro Devices by 850.0% during the 3rd quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer’s stock valued at $35,000 after acquiring an additional 51 shares during the period. Finally, Sawyer & Company Inc acquired a new stake in shares of Advanced Micro Devices during the 3rd quarter valued at approximately $37,000. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock Performance

The stock’s 50-day moving average price is $548.16 and its 200-day moving average price is $410.43. The company has a market capitalization of $789.95 billion, a price-to-earnings ratio of 124.40, a P/E/G ratio of 5.94 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.

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.