Advanced Micro Devices (NASDAQ:AMD) Shares Up 4.7% – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price rose 4.7% on Friday . The stock traded as high as $478.83 and last traded at $477.57. Approximately 19,314,927 shares changed hands during trading, a decline of 43% from the average session volume of 33,985,566 shares. The stock had previously closed at $456.16.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s latest quarterly performance remains a key bullish catalyst: revenue rose 50% year over year to $11.5 billion, while data-center revenue increased 107% and represented 58% of total sales. Analysts cited expected earnings growth and strong AI partnerships in maintaining a Buy view. AMD: Paying Up For A Ramp That’s Already Been Outlined
• Positive Sentiment: AMD is expanding its AI infrastructure opportunity through a Saudi Arabia partnership with HUMAIN, targeting 250 megawatts of capacity beginning in 2027 and as much as 1 gigawatt by 2030. This could provide a significant long-term demand source alongside cloud and data-center growth. Can AMD’s Saudi AI Buildout Challenge NVIDIA and Broadcom?
• Positive Sentiment: AMD’s IFA 2026 presentation highlighted Strix Halo and Gorgon Halo processors, local execution of very large AI models, and the company’s push into “agentic” personal computing. ASUS also named AMD as a strategic partner in expanding AI infrastructure from the cloud to the edge. AMD IFA 2026 Keynote
• Positive Sentiment: AMD is gaining visibility in secure AI infrastructure through Linux Foundation TRACE and AMD Secure Encrypted Virtualization, potentially strengthening its position in governed and confidential workloads. Why AMD Is Becoming More Important in Secure AI Infrastructure
• Neutral Sentiment: Technical analysts describe AMD as being near a major support or inflection zone around $450, while a developing bullish-flag pattern could support a breakout if momentum improves. ORCL Eyes Breakout as AMD and Intel Test Key Support
• Negative Sentiment: ARK Invest sold approximately $72.8 million of AMD and bought roughly $53 million of Nvidia, signaling a preference for Nvidia within the AI-chip trade and creating a near-term sentiment headwind. Cathie Wood Cuts AMD and Puts $53 Million Into Nvidia
• Negative Sentiment: Several analyses warn that AMD’s strong growth is already reflected in its elevated valuation. Comparisons suggest Nvidia may deliver faster growth at a more attractive price, while Zacks Research downgraded AMD from Strong Buy to Hold. Prediction: Nvidia Stock Will Outperform AMD Through 2028

Analyst Ratings Changes

A number of research firms recently commented on AMD. Royal Bank Of Canada reiterated a “sector perform” rating and set a $540.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Loop Capital upgraded shares of Advanced Micro Devices to a “strong-buy” rating in a report on Tuesday, June 16th. Argus boosted their price objective on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Stifel Nicolaus raised their target price on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Finally, Raymond James Financial raised shares of Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and lifted their target price 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-two have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $553.72.

Advanced Micro Devices Price Performance

The company’s 50-day moving average is $500.08 and its 200-day moving average is $392.68. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market capitalization of $779.62 billion, a price-to-earnings ratio of 122.77, a PEG ratio of 4.73 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results 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. The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. Advanced Micro Devices’s revenue was up 50.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.48 earnings per share. On average, research analysts expect that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Jean X. Hu sold 15,000 shares of Advanced Micro Devices stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at $76,316,924.32. The trade was a 8.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of the business’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the sale, the executive vice president owned 117,687 shares of the company’s stock, valued at $60,598,213.17. The trade was a 11.30% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 232,577 shares of company stock worth $109,509,170. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

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

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.