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

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) shot up 1.3% during trading on Tuesday. The company traded as high as $539.25 and last traded at $515.21. Approximately 46,770,275 shares traded hands during mid-day trading, an increase of 45% from the average daily volume of 32,186,650 shares. The stock had previously closed at $508.58.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Google Cloud’s selection of AMD EPYC processors for host infrastructure supporting its TPU 8tx AI system gives AMD a concrete role in a major cloud AI platform. AMD also said its latest-generation EPYC platforms are shipping through server partners. AMD Expands Work With Google to Power Host Infrastructure for Cloud TPU
• Positive Sentiment: Reports that AMD is among companies planning to buy Anthropic shares in its IPO add to optimism about AMD’s connections to the AI ecosystem, though the investment is not itself a chip order. Anthropic IPO Could Value Claude Maker at $1.4 Trillion
• Positive Sentiment: Oppenheimer’s bullish view and $600 price target, along with analyst praise for CEO Lisa Su’s execution and supply strategy, have supported sentiment. AMD’s recent strong results and growth outlook also underpin the AI-demand thesis. Oppenheimer Just Set a $600 Target on AMD Stock
• Neutral Sentiment: Investors are weighing whether Nvidia’s troubles will lead customers to switch suppliers, rather than simply prompting money to rotate between chip stocks. That distinction could determine whether AMD’s recent relative strength lasts. AMD’s Stock Fades as Investors Weigh Nvidia Turmoil
• Negative Sentiment: Bearish commentary points to falling free cash flow and rising inventory despite AI growth, while AMD’s high valuation leaves less room for execution missteps. These concerns may explain why enthusiasm has periodically faded. Here’s the AMD Data Center Number Investors Need to Know

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Benchmark increased their price objective on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a report on Wednesday, July 22nd. HSBC restated a “hold” rating and set a $540.00 target price on shares of Advanced Micro Devices in a report on Thursday, November 5th. Argus upped their price target on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Jefferies Financial Group reissued a “buy” rating on shares of Advanced Micro Devices in a research report on Thursday, October 29th. Finally, TD Cowen restated a “buy” rating on shares of Advanced Micro Devices in a research note on Monday, October 19th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $642.47.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.10, a current ratio of 2.72 and a quick ratio of 1.91. The stock has a 50-day simple moving average of $547.67 and a 200-day simple moving average of $416.28. The stock has a market cap of $841.06 billion, a P/E ratio of 112.00, a PEG ratio of 5.01 and a beta of 2.49.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.95 by $0.14. The business had revenue of $13.38 billion during the quarter, compared to analyst estimates of $13.10 billion. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. The firm’s quarterly revenue was up 44.7% on a year-over-year basis. During the same quarter last year, the business earned $1.20 EPS. Research analysts forecast that Advanced Micro Devices, Inc. will post 6.59 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Forrest Norrod sold 17,262 shares of Advanced Micro Devices stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the sale, the executive vice president directly owned 353,317 shares in the company, valued at approximately $191,038,501.90. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the transaction, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This represents a 2.23% 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 sold a total of 230,957 shares of company stock valued at $114,799,511 over the last quarter. Corporate insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently made changes to their positions in the business. Trustmark Bank Trust Department boosted its stake in Advanced Micro Devices by 24.2% in the third quarter. Trustmark Bank Trust Department now owns 1,210 shares of the semiconductor manufacturer’s stock valued at $740,000 after acquiring an additional 236 shares during the last quarter. SSA Swiss Advisors AG bought a new position in Advanced Micro Devices during the third quarter valued at $220,000. Stelac Advisory Services LLC bought a new position in Advanced Micro Devices during the third quarter valued at $137,000. Bogart Wealth LLC grew its holdings in Advanced Micro Devices by 22.3% during the third quarter. Bogart Wealth LLC now owns 3,726 shares of the semiconductor manufacturer’s stock valued at $2,279,000 after purchasing an additional 680 shares during the period. Finally, Public Sector Pension Investment Board increased its position in Advanced Micro Devices by 23.0% in the third quarter. Public Sector Pension Investment Board now owns 512,510 shares of the semiconductor manufacturer’s stock worth $306,009,000 after buying an additional 95,710 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors. The company’s product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.