Advanced Micro Devices (NASDAQ:AMD) Trading 1.6% Higher – Here’s What Happened

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) were up 1.6% during mid-day trading on Wednesday . The company traded as high as $527.25 and last traded at $512.50. Approximately 22,086,683 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 33,486,961 shares. The stock had previously closed at $504.20.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Another bullish analyst endorsement supported the move. Piper Sandler reiterated its Overweight rating and maintained a $600 price target, citing confidence that AMD’s CPU and GPU product ramps remain on schedule and that demand continues to exceed supply. Why Advanced Micro Devices Stock Just Popped
• Positive Sentiment: AI infrastructure demand remains the central catalyst. Recent quarterly results showed revenue growth of roughly 50% year over year and data-center revenue growth of more than 100%, while management’s third-quarter outlook reinforced expectations for accelerating second-half growth from server and AI products. Investors also see AMD benefiting as inference workloads expand and cloud providers continue increasing capital expenditures. AMD rises as upbeat AI demand commentary and chip-sector rebound support shares
• Positive Sentiment: Product ecosystem developments added support. AMD and SiFive demonstrated AMD ROCm software running on RISC-V data-center hardware, while AMD is reportedly validating Micron’s high-density server memory modules for future platforms. These developments could improve AMD’s competitiveness in AI and server deployments. SiFive and AMD Collaborate to Optimize AMD ROCm on RISC-V Datacenter Servers
• Neutral Sentiment: Technical momentum improved as AMD rebounded with the semiconductor sector, although analysts identified potential resistance near $530. Broader ETF gains also reflected strength in AMD and other chip stocks rather than a new company filing.
• Negative Sentiment: Insider selling and elevated valuation remain risks. AMD insiders, including CEO Lisa Su, have reported substantial sales under pre-arranged trading plans, with no reported open-market purchases in the past six months. Analysts also caution that the stock’s valuation already discounts significant future AI and data-center expansion, leaving shares vulnerable if product ramps or demand disappoint. Advanced Micro Devices Stock Price Down After Insider Selling

Analyst Ratings Changes

Several brokerages have recently commented on AMD. Barclays downgraded Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research report on Friday, June 12th. Roth Capital lifted their target price on Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Robert W. Baird set a $1,250.00 price target on Advanced Micro Devices in a report on Friday, July 24th. The Goldman Sachs Group upped their price target on Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Finally, Wall Street Zen raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $565.12.

Advanced Micro Devices Trading Up 1.6%

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 stock has a 50-day moving average price of $494.34 and a two-hundred day moving average price of $409.33. The stock has a market cap of $836.64 billion, a PE ratio of 131.75, a price-to-earnings-growth ratio of 5.12 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the previous year, the business earned $0.48 earnings per share. The firm’s revenue for the quarter was up 50.1% on a year-over-year basis. Sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark Papermaster sold 28,811 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the sale, the executive vice president directly owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the transaction, the senior vice president owned 26,623 shares of the company’s stock, valued at $13,010,393.87. This represents a 10.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 196,577 shares of company stock worth $96,850,690. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently made changes to their positions in AMD. BlackRock Inc. grew its holdings in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Advanced Micro Devices by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock valued at $8,015,897,000 after buying an additional 287,525 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Advanced Micro Devices in the second quarter worth approximately $7,022,226,000. Jennison Associates LLC lifted its stake in shares of Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after acquiring an additional 545,575 shares during the last quarter. Finally, Wellington Management Group LLP lifted its stake in shares of Advanced Micro Devices by 33.9% during the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after acquiring an additional 2,365,419 shares during the last quarter. 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 semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.