Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 1.3% – Still a Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares rose 1.3% during mid-day trading on Tuesday . The stock traded as high as $624.52 and last traded at $623.77. Approximately 27,895,899 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 33,479,590 shares. The stock had previously closed at $615.52.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s $1 trillion milestone reflects strong investor confidence in its AI infrastructure opportunity. Recent coverage points to major OpenAI and Oracle-related deals, 107% year-over-year data-center revenue growth, and expanding demand for EPYC CPUs and Instinct accelerators as agentic AI increases computing and inference workloads. AMD Chips Away at NVIDIA’s AI Throne
• Positive Sentiment: CEO Lisa Su’s view that mainstream agentic AI could drive a new CPU demand wave supports the longer-term growth narrative and broadens AMD’s opportunity beyond graphics processors. CPUs Are Hot Again
• Neutral Sentiment: Speculation about a stock split has increased after AMD surpassed $600, but no split has been announced. A split would improve trading accessibility without changing the company’s fundamental value. Is an AMD Stock Split Coming?
• Negative Sentiment: Analysts and commentators warn that AMD’s 187% year-to-date rally may have moved ahead of fundamentals. Comparisons with Nvidia, which trades at a much lower forward earnings multiple, highlight concerns that AMD’s current price already discounts substantial future growth. AMD Versus Nvidia

Analyst Ratings Changes

AMD has been the topic of a number of research reports. Morgan Stanley upped their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 5th. Piper Sandler started coverage on shares of Advanced Micro Devices in a research report on Tuesday, September 15th. They set an “overweight” rating and a $600.00 price target for the company. Argus raised their price objective on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Stifel Nicolaus lifted their target price on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Advanced Micro Devices in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average price target of $565.12.

Advanced Micro Devices Stock Down 1.5%

The firm has a market cap of $1.00 trillion, a P/E ratio of 158.00, a price-to-earnings-growth ratio of 6.47 and a beta of 2.48. The firm’s 50 day moving average is $499.09 and its two-hundred day moving average is $425.36. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS 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 the consensus estimate 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 quarterly revenue was up 50.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.48 earnings per share. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.43 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction dated 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 transaction, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. The trade was a 2.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,261 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $503.05, for a total value of $8,683,146.05. Following the sale, the executive vice president directly owned 363,317 shares of the company’s stock, valued at approximately $182,766,616.85. The trade was a 4.54% 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. Insiders have sold a total of 213,838 shares of company stock worth $105,533,836 in the last three months. 0.50% of the stock is owned by insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the company. First National Bank of Hutchinson grew its position in shares of Advanced Micro Devices by 0.4% in the 2nd quarter. First National Bank of Hutchinson now owns 5,639 shares of the semiconductor manufacturer’s stock valued at $3,276,000 after acquiring an additional 22 shares during the period. Delta Asset Management LLC TN increased its stake in shares of Advanced Micro Devices by 1.5% during the 2nd quarter. Delta Asset Management LLC TN now owns 1,497 shares of the semiconductor manufacturer’s stock worth $870,000 after purchasing an additional 22 shares during the last quarter. Park Place Capital Corp raised its holdings in shares of Advanced Micro Devices by 19.5% in the 2nd quarter. Park Place Capital Corp now owns 141 shares of the semiconductor manufacturer’s stock valued at $82,000 after purchasing an additional 23 shares during the period. Clal Insurance Enterprises Holdings Ltd lifted its stake in Advanced Micro Devices by 12.8% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock valued at $43,000 after purchasing an additional 24 shares during the last quarter. Finally, Round Rock Advisors LLC grew its holdings in Advanced Micro Devices by 2.3% during the second quarter. Round Rock Advisors LLC now owns 1,048 shares of the semiconductor manufacturer’s stock worth $609,000 after purchasing an additional 24 shares during the period. 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 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.