Advanced Micro Devices (NASDAQ:AMD) Trading Up 1% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD) traded up 1% during mid-day trading on Tuesday . The company traded as high as $475.99 and last traded at $474.32. 17,957,749 shares were traded during trading, a decline of 50% from the average session volume of 35,938,746 shares. The stock had previously closed at $469.56.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Wedbush identified a potential catalyst from Anthropic’s reported $9.1 billion, 20-year data-center lease with Riot Platforms. The deal highlights accelerating demand for AI infrastructure and could support AMD’s data-center business as capacity expands. Wedbush Flags Surprise AMD Catalyst From Anthropic
• Positive Sentiment: AMD’s Helios rack-scale AI systems are expected to begin ramping this quarter, potentially broadening the company’s role beyond individual chips and benefiting its hardware and infrastructure partners. AMD’s Helios Launch Could Create Winners Beyond AMD Stock
• Positive Sentiment: AMD expanded its AI roadmap through support for Meta’s Muse Glimmer 30B model on PCs, while the Taalas acquisition is expected to strengthen specialized AI-inference capabilities versus Nvidia and other competitors. AMD Brings Meta’s New AI Model to PCs
• Positive Sentiment: Northland Securities raised its FY2026 EPS estimate to $5.97 from $5.54 and its FY2027 forecast to $8.55 from $6.95, signaling improving expectations for future growth, although the firm maintained a Market Perform rating. Advanced Micro Devices analyst estimates
• Neutral Sentiment: At the KeyBanc Technology Leadership Forum, investors received additional commentary on AMD’s AI strategy and data-center plans, but the transcript did not provide a clearly new financial forecast. AMD KeyBanc Technology Leadership Forum transcript
• Negative Sentiment: Analysts caution that AMD’s rapid revenue growth may not translate into sufficient margin expansion. Concerns that the stock is priced for near-perfect execution have prompted rating downgrades and could limit further gains. AMD revenue growth and margin concerns
• Negative Sentiment: AMD remains highly valued relative to current earnings, while ongoing insider selling and a recent pullback in chip stocks reinforce investor sensitivity to AI-spending expectations and execution risk.

Analyst Ratings Changes

Several brokerages have weighed in on AMD. HSBC downgraded Advanced Micro Devices from a “buy” rating to a “hold” rating and increased their price target for the stock from $335.00 to $340.00 in a research report on Monday, May 4th. UBS Group restated an “overweight” rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. William Blair reaffirmed a “market perform” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Benchmark lifted their price target on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Finally, Sanford C. Bernstein reissued an “outperform” rating and issued a $650.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus target price of $546.87.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The firm has a market capitalization of $774.32 billion, a PE ratio of 121.93 and a beta of 2.48. The firm’s 50 day moving average price is $513.75 and its 200-day moving average price is $361.67.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.Advanced Micro Devices’s revenue for the quarter was up 50.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.48 EPS. On average, research analysts expect that Advanced Micro Devices, Inc. will post 6.38 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the completion of the transaction, the executive vice president directly owned 324,527 shares of the company’s stock, valued at $140,000,947.80. This represents a 5.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the transaction, the executive vice president owned 1,233,687 shares in the company, valued at $661,663,348.71. This trade represents a 0.48% 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 have sold 285,934 shares of company stock valued at $130,353,006 over the last ninety days. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently modified their holdings of the stock. Joseph Group Capital Management acquired a new stake in Advanced Micro Devices in the 4th quarter worth about $25,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the fourth quarter valued at approximately $27,000. Cornerstone Financial Management LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Basepoint Wealth LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Finally, Graney & King LLC acquired a new stake in shares of Advanced Micro Devices in the first quarter worth approximately $31,000. 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.