Advanced Micro Devices (NASDAQ:AMD) Shares Climb 1% After Strong Earnings

Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 1% during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $514.61 and last traded at $488.78. Approximately 50,413,852 shares traded hands during mid-day trading, an increase of 59% from the average session volume of 31,793,707 shares. The stock had previously closed at $483.90.

The semiconductor manufacturer reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The company had revenue of $13.38 billion during the quarter, compared to analyst estimates of $13.10 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The firm’s revenue was up 44.7% on a year-over-year basis. During the same quarter last year, the firm posted $1.20 earnings per share.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD beat third-quarter expectations, reporting $2.09 in adjusted earnings per share and $13.38 billion in revenue. Data Center revenue surged 97% year over year, led by AI GPU and EPYC server CPU demand. Reuters report on AMD results
• Positive Sentiment: Management forecast about $17 billion in fourth-quarter revenue and signaled more than 80% revenue growth in 2027, with its AI Data Center business expected to more than double. The outlook supports expectations that AI demand can sustain rapid growth. AMD outlook and earnings call highlights
• Positive Sentiment: Several analysts raised price targets after the results, citing AI demand and server CPU opportunities. Piper Sandler lifted its target to $650, while JPMorgan raised its target to $575 but maintained a neutral rating. Analyst views on AMD’s 2027 outlook
• Negative Sentiment: Investors are also focused on weaker cash generation despite record sales: free cash flow reportedly fell to about 4% of revenue, while inventory and spending tied to AI growth may weigh on near-term cash conversion. Analysis of AMD’s free cash flow
• Negative Sentiment: Execution risks remain: AMD faces high-bandwidth memory supply constraints and competition from Intel in server CPUs and Broadcom’s custom AI chips. Some investors also worry that political shifts could slow AI infrastructure spending. Analysis of AMD’s competitive threats

Analysts Set New Price Targets

Several analysts have weighed in on the company. Morgan Stanley lifted their price objective on Advanced Micro Devices from $465.00 to $510.00 and gave the company an “equal weight” rating in a research report on Monday. Bank of America decreased their target price on Advanced Micro Devices from $720.00 to $650.00 and set a “buy” rating for the company in a research report on Wednesday. Truist Financial raised their target price on Advanced Micro Devices from $594.00 to $605.00 and gave the company a “buy” rating in a research note on Wednesday. Stifel Nicolaus lifted their price target on Advanced Micro Devices from $700.00 to $725.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Union Gaming Research restated a “positive” rating on shares of Advanced Micro Devices in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $619.30.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction dated 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 sale, the senior vice president owned 26,623 shares in the company, valued at approximately $13,010,393.87. This represents a 10.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,262 shares of the company’s stock in a transaction dated 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 completion of the sale, the executive vice president owned 353,317 shares in the company, valued at approximately $191,038,501.90. This trade represents a 4.66% 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. Insiders have sold a total of 231,100 shares of company stock valued at $114,867,400 over the last three months. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMD. DecisionPoint Financial LLC raised its position in shares of Advanced Micro Devices by 79.2% in the 3rd quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 19 shares during the last quarter. MJT & Associates Financial Advisory Group Inc. bought a new position in Advanced Micro Devices in the 3rd quarter worth about $29,000. JNBA Financial Advisors boosted its stake in Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Graney & King LLC purchased a new stake in Advanced Micro Devices during the 1st quarter valued at about $31,000. Finally, Main Street Group LTD purchased a new stake in Advanced Micro Devices during the 1st quarter valued at about $33,000. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock Up 1.0%

The company has a market capitalization of $797.92 billion, a PE ratio of 125.65, a P/E/G ratio of 4.79 and a beta of 2.49. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The company’s 50-day moving average is $548.70 and its 200 day moving average is $411.73.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.