Advanced Micro Devices (NASDAQ:AMD) Shares Up 6.4% – Here’s Why

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 6.4% on Thursday . The company traded as high as $551.42 and last traded at $545.09. 28,170,370 shares traded hands during trading, a decline of 16% from the average session volume of 33,436,703 shares. The stock had previously closed at $512.50.

Key Advanced Micro Devices News

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

• Positive Sentiment: Reported price increases support margins: Reports that AMD may raise GPU and CPU prices by roughly 10% are boosting expectations for improved revenue and profitability, particularly amid strong demand and constrained chip supply. AMD Stock Soars 5% on Reports of GPU and CPU Price Increases
• Positive Sentiment: Broad semiconductor rebound: AMD is leading a sector-wide recovery, with investors discounting near-term AI slowdown concerns and buying chipmakers including NVIDIA, Broadcom, Micron and Intel. The broader rally is providing additional momentum for AMD. AMD Jumps 7% as Semiconductor Rebound Reaches a Third Session
• Positive Sentiment: AI and data-center growth remain central to the bullish thesis: Recent commentary points to CPU and GPU ramps remaining on schedule, with prior quarterly revenue up about 50% year over year and data-center revenue up more than 100%. Analysts also continue to cite AMD’s opportunity to gain AI accelerator share. AMD rises as upbeat AI demand commentary and chip-sector rebound support shares
• Positive Sentiment: ROCm ecosystem expansion: AMD is working with SiFive to adapt its open-source ROCm AI software for RISC-V data-center servers, potentially broadening hardware compatibility and strengthening its alternative to NVIDIA’s CUDA ecosystem. Advanced Micro Devices Expands ROCm Support to RISC-V Datacenter Servers
• Neutral Sentiment: Technical and institutional support: AMD has moved above key recent trading levels, while institutional investors reportedly added shares during the second quarter. Several published price targets remain above the current market level, though the reported analyst median target is lower.
• Negative Sentiment: Competition and valuation risks persist: Huawei has introduced more than 10 AI chips aimed at NVIDIA, AMD and Intel, potentially increasing competitive pressure. AMD also trades at a demanding valuation, while extensive insider selling—including sales by CEO Lisa Su—could temper enthusiasm. Huawei Takes Aim at Nvidia and AMD with New AI Chipsets

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AMD shares. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $650.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Barclays lowered shares of Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a report on Friday, June 12th. Stifel Nicolaus lifted their target price on Advanced Micro Devices from $450.00 to $635.00 and gave the company a “buy” rating in a research note on Friday, July 10th. Robert W. Baird set a $1,250.00 price target on Advanced Micro Devices in a report on Friday, July 24th. Finally, Truist Financial boosted their price objective on Advanced Micro Devices from $478.00 to $594.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Price Performance

The firm has a market cap of $889.85 billion, a price-to-earnings ratio of 140.13, a P/E/G ratio of 5.23 and a beta of 2.48. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a 50 day moving average of $494.24 and a 200 day moving average of $411.50.

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 analysts’ consensus estimates of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business’s revenue was up 50.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.48 earnings per share. Equities research analysts predict that Advanced Micro Devices, Inc. will post 6.43 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In related news, SVP Ava Hahn sold 2,993 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the transaction, the senior vice president directly owned 26,623 shares in the company, valued at approximately $13,010,393.87. The trade was a 10.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. The trade was a 2.23% 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. In the last ninety days, insiders sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several large investors have recently modified their holdings of AMD. Norges Bank acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $4,929,312,000. Bank of America Corp DE bought a new position in shares of Advanced Micro Devices in the second quarter worth about $7,022,226,000. Cardano Risk Management B.V. acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at approximately $1,000,783,000. BlackRock Inc. increased its position 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 worth $87,311,650,000 after purchasing an additional 4,535,126 shares in the last quarter. Finally, Franklin Resources Inc. lifted its stake in Advanced Micro Devices by 340.1% in the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $1,016,796,000 after purchasing an additional 3,669,054 shares during the last quarter. 71.34% of the stock is owned by institutional investors.

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.