Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 5.9% – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 5.9% on Wednesday . The company traded as high as $436.69 and last traded at $438.5450. Approximately 5,344,249 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 38,978,820 shares. The stock had previously closed at $414.05.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Analysts are becoming more bullish on AMD’s long-term server CPU opportunity, with higher market forecasts and fresh price-target increases signaling additional upside potential. Evercore ISI Raises Price Target on Advanced Micro Devices (AMD) Amid AI Market Shift
• Positive Sentiment: BofA’s updated outlook for the server CPU market suggests a much larger AI-driven opportunity, which could benefit AMD’s data center growth story. BofA names top chip stocks as server CPU TAM seen reaching $125bn by 2030
• Neutral Sentiment: Several opinion pieces argue AMD remains a strong long-term AI stock, but some also frame the rally as already very extended, which may temper enthusiasm near-term. Should Investors Buy AMD Stock Instead of Nvidia?
• Neutral Sentiment: AMD’s CEO meeting with Chinese officials and ongoing discussion about export rules may affect sentiment, but the direct financial impact remains unclear for now. What’s Going On With AMD Stock Tuesday?
• Negative Sentiment: Some commentary warns that AMD is facing intense competition from Nvidia and may be vulnerable if market expectations get too crowded or if growth slows. AMD Has An Nvidia Problem

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on AMD shares. Mizuho lifted their price objective on Advanced Micro Devices from $415.00 to $515.00 and gave the company an “outperform” rating in a report on Tuesday, May 12th. Bank of America lifted their price objective on Advanced Micro Devices from $450.00 to $500.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Royal Bank Of Canada lifted their price objective on Advanced Micro Devices from $325.00 to $400.00 and gave the company a “sector perform” rating in a report on Wednesday, May 6th. Jefferies Financial Group cut shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. Finally, Barclays upped their price target on shares of Advanced Micro Devices from $300.00 to $500.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average target price of $410.00.

Advanced Micro Devices Stock Up 7.4%

The stock has a market capitalization of $724.95 billion, a PE ratio of 145.49, a P/E/G ratio of 1.25 and a beta of 2.40. The firm has a 50 day moving average of $282.35 and a two-hundred day moving average of $242.59. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.08. The business had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business’s revenue was up 37.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.96 EPS. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer owned 3,021,899 shares in the company, valued at approximately $1,346,286,223.49. The trade was a 3.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the transaction, the executive vice president owned 1,236,037 shares of the company’s stock, valued at approximately $432,612,950. The trade was a 2.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 309,598 shares of company stock valued at $105,644,316 in the last 90 days. 0.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at $25,000. Koesten Hirschmann & Crabtree INC. lifted its position in shares of Advanced Micro Devices by 61.0% in the third quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 61 shares in the last quarter. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at $27,000. Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Finally, Basepoint Wealth LLC acquired a new stake in Advanced Micro Devices during the fourth quarter worth approximately $30,000. 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 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.