Advanced Micro Devices (NASDAQ:AMD) Stock Jumps 7.3% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 7.3% on Wednesday. The company traded as high as $567.65 and last traded at $552.90. Approximately 42,567,708 shares traded hands during mid-day trading, an increase of 32% from the average session volume of 32,252,742 shares. The stock had previously closed at $515.21.

Advanced Micro Devices News Summary

Investors following AMD have been watching these news items:

• Positive Sentiment: AMD launched its new EPYC Venice 9006 server CPUs, adding a product catalyst in the data-center market. Reports also say Google selected AMD EPYC processors for its TPU 8tx system, signaling a potential customer use case for AMD CPUs alongside AI accelerators. Article: AMD Stock Rises on the Launch of its EPYC Venice 9006 CPUs Article: What Is Going on With AMD Stock on Wednesday?
• Positive Sentiment: CoreWeave’s earnings beat and raised outlook helped revive confidence in AI infrastructure spending, supporting AMD and other chipmakers. UBS commentary on growing CPU sales provided another positive demand signal. Article: Why Advanced Micro Devices Stock Popped Today
• Neutral Sentiment: AMD’s planned roughly $2.5 billion purchase of Anthropic shares is tied to an existing chip-supply arrangement. The deal highlights the strategic link between AMD and a major AI customer, but also represents a substantial investment commitment. Article: AMD Stocks Rise as $2.5 Billion Anthropic Stake Meets Goldman Top-Pick Call

Wall Street Analyst Weigh In

AMD has been the topic of several research analyst reports. Union Gaming Research restated a “positive” rating on shares of Advanced Micro Devices in a research note on Wednesday, November 4th. Cantor Fitzgerald reiterated an “overweight” rating and set a $700.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, November 4th. Roth Capital increased their target price on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the stock a “buy” rating in a report on Friday, July 24th. William Blair restated a “market perform” rating on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $600.00 price target on shares of Advanced Micro Devices in a report on Wednesday, November 4th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $642.47.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $906.80 billion, a P/E ratio of 120.20, a P/E/G ratio of 4.90 and a beta of 2.49. The stock has a 50 day moving average of $548.56 and a 200 day moving average of $417.58. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.93 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share for the quarter, topping the consensus estimate of $1.95 by $0.14. The firm had revenue of $13.38 billion for the quarter, compared to analyst estimates of $13.10 billion. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The firm’s revenue for the quarter was up 44.7% on a year-over-year basis. During the same period last year, the company earned $1.20 earnings per share. Equities analysts predict that Advanced Micro Devices, Inc. will post 6.93 EPS for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 28,811 shares of the business’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 transaction, the executive vice president directly owned 1,261,461 shares of the company’s stock, 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, CEO Lisa T. Su sold 25,000 shares of the company’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the completion of the transaction, the chief executive officer owned 74,211 shares of the company’s stock, valued at approximately $37,609,392.69. This trade represents a 25.20% decrease in their position. 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 90 days, insiders have sold 230,957 shares of company stock worth $114,799,511. 0.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Patron Partners LLC raised its position in shares of Advanced Micro Devices by 28.2% during the 3rd quarter. Patron Partners LLC now owns 2,400 shares of the semiconductor manufacturer’s stock worth $1,468,000 after buying an additional 528 shares in the last quarter. Red Oak Financial Group LLC acquired a new stake in shares of Advanced Micro Devices in the 3rd quarter worth approximately $218,000. Mayflower Financial Advisors LLC boosted its holdings in shares of Advanced Micro Devices by 0.8% in the third quarter. Mayflower Financial Advisors LLC now owns 5,421 shares of the semiconductor manufacturer’s stock valued at $3,316,000 after acquiring an additional 45 shares in the last quarter. Advisors Asset Management Inc. bought a new position in Advanced Micro Devices during the 3rd quarter valued at $43,306,000. Finally, Edmond DE Rothschild Holding S.A. raised its stake in shares of Advanced Micro Devices by 12.7% in the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 41,012 shares of the semiconductor manufacturer’s stock worth $25,090,000 after buying an additional 4,610 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

About Advanced Micro Devices

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.