Advanced Micro Devices (NASDAQ:AMD) Trading 7% Higher on Strong Earnings

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was up 7% during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $530.13 and last traded at $518.58. Approximately 42,607,845 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 36,169,738 shares. The stock had previously closed at $484.64.

The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.61 by $0.05. The company had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Strong earnings expectations: Wall Street is forecasting approximately $1.55–$1.61 in adjusted EPS and $11.28–$11.31 billion in revenue. Investors are looking for another substantial increase in data-center sales, driven by EPYC processors, Instinct GPUs and cloud expansion. Top Wall Street Forecasters Revamp AMD Expectations Ahead of Q2 Earnings
• Positive Sentiment: AI infrastructure momentum: Recent results from Palantir and Taiwan Semiconductor reinforced investor confidence that enterprise AI deployment and chip demand remain strong. AMD’s planned Helios rack-scale platform, along with future MI450 products, could help the company compete more directly with Nvidia in complete AI systems. Stanley Druckenmiller Holds Taiwan Semiconductor After Its Q2 Beat
• Positive Sentiment: Favorable analyst outlook: Several analysts maintain price targets above the current trading range, including targets of $615–$700. Zacks also added AMD to its Rank #1 Strong Buy and momentum lists. AMD Stock Jumps Ahead of Results, With $550 in Sight
• Positive Sentiment: Broader chip-sector rebound: Semiconductor stocks and related ETFs rallied as investors rotated back into AI-linked companies, providing a favorable backdrop for AMD before its report. Chip Stocks Ride a Risk-On Rally
• Neutral Sentiment: Large post-earnings move expected: Options markets imply roughly an 8.5%–9% potential move after the report, signaling significant event risk and heightened trader positioning. AMD Earnings Are a Key Test for Chips and Momentum Stocks
• Negative Sentiment: High expectations and valuation risk: After a major year-to-date rally, an earnings beat may not be sufficient unless AMD delivers strong data-center growth and an encouraging outlook. Any signs of slowing AI demand, weaker margins or cautious China commentary could trigger a reversal. AMD Earnings Preview
• Negative Sentiment: Insider and fund selling: Recent disclosures show substantial AMD insider selling, while Ark Invest reportedly sold about $68 million of AMD shares in July. These transactions may reinforce concerns that the stock’s gains have become stretched. Cathie Wood’s Ark Invest Sold AMD Stock

Wall Street Analyst Weigh In

Several research firms have weighed in on AMD. Wall Street Zen upgraded shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Monday, July 20th. Barclays downgraded Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a report on Friday, June 12th. Susquehanna lifted their target price on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the company a “positive” rating in a research note on Thursday, July 30th. Zacks Research downgraded shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Finally, Bank of America increased their price target on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average price target of $529.46.

Insider Transactions at Advanced Micro Devices

In other news, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the transaction, the director owned 87,173 shares of the company’s stock, valued at $45,504,306. This trade represents a 9.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Paul Darren Grasby sold 24,376 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president owned 105,222 shares of the company’s stock, valued at $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 310,310 shares of company stock worth $141,185,456. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently bought and sold shares of AMD. Norges Bank bought a new position in Advanced Micro Devices during the fourth quarter valued at about $4,929,312,000. Jennison Associates LLC lifted its position in shares of Advanced Micro Devices by 181.6% in the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after acquiring an additional 7,035,991 shares during the period. Cardano Risk Management B.V. bought a new stake in shares of Advanced Micro Devices in the 4th quarter worth approximately $1,000,783,000. Wellington Management Group LLP grew its holdings in shares of Advanced Micro Devices by 335.9% during the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock worth $784,330,000 after purchasing an additional 3,735,807 shares in the last quarter. Finally, Franklin Resources Inc. grew its holdings in shares of Advanced Micro Devices by 340.1% during the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after purchasing an additional 3,669,054 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Stock Up 7.0%

The business has a 50 day moving average of $515.77 and a 200 day moving average of $352.55. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The firm has a market capitalization of $845.60 billion, a price-to-earnings ratio of 170.03 and a beta of 2.48.

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.