Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 8.1% – Still a Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price rose 8.1% on Wednesday . The stock traded as high as $449.39 and last traded at $447.58. Approximately 35,228,373 shares were traded during mid-day trading, a decline of 10% from the average daily volume of 39,330,496 shares. The stock had previously closed at $414.05.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD said it is ramping production of its 6th Gen EPYC “Venice” CPUs on TSMC’s 2nm process, a major manufacturing milestone that supports its AI and data center strategy. Article Title
• Positive Sentiment: AMD announced more than $10 billion in Taiwan ecosystem investments to expand advanced packaging and AI infrastructure capacity, which could improve supply and accelerate next-gen product deployment. Article Title
• Positive Sentiment: Reuters reported that CEO Lisa Su said AMD is asking partners to ramp up production because of strong AI demand, reinforcing expectations for stronger shipments. Article Title
• Positive Sentiment: Market commentary continues to frame AMD as a beneficiary of the AI chip rotation beyond Nvidia, supporting sentiment around the stock. Article Title

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AMD. TD Cowen raised their price objective on shares of Advanced Micro Devices from $290.00 to $500.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Seaport Research Partners raised shares of Advanced Micro Devices from a “neutral” rating to a “buy” rating and set a $430.00 price objective on the stock in a report on Wednesday, May 6th. Bank of America raised their price objective on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “buy” rating in a report on Wednesday, May 13th. Truist Financial set a $478.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $410.00.

Advanced Micro Devices Trading Up 0.4%

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The firm has a market capitalization of $733.10 billion, a PE ratio of 147.41, a price-to-earnings-growth ratio of 1.33 and a beta of 2.40. The business’s 50-day moving average price is $292.17 and its 200-day moving average price is $245.31.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company’s revenue for the quarter was up 37.8% compared to the same quarter last year. During the same period last year, the firm posted $0.96 earnings per share. As a group, analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the transaction, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the transaction, the executive vice president owned 1,236,037 shares in the company, valued at approximately $432,612,950. This trade represents a 2.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 309,598 shares of company stock worth $105,644,316. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors have recently bought and sold shares of AMD. Impax Asset Management Group plc raised its stake in Advanced Micro Devices by 326.5% in the 3rd quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer’s stock valued at $8,424,000 after purchasing an additional 39,861 shares during the last quarter. Zweig DiMenna Associates LLC raised its stake in Advanced Micro Devices by 127.6% in the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer’s stock valued at $11,746,000 after purchasing an additional 40,708 shares during the last quarter. Wedbush Securities Inc. raised its stake in Advanced Micro Devices by 7.8% in the 3rd quarter. Wedbush Securities Inc. now owns 84,256 shares of the semiconductor manufacturer’s stock valued at $13,632,000 after purchasing an additional 6,095 shares during the last quarter. WealthPlan Investment Management LLC raised its stake in Advanced Micro Devices by 338.5% in the 4th quarter. WealthPlan Investment Management LLC now owns 6,157 shares of the semiconductor manufacturer’s stock valued at $1,319,000 after purchasing an additional 4,753 shares during the last quarter. Finally, Highline Wealth Partners LLC raised its stake in Advanced Micro Devices by 4,891.6% in the 4th quarter. Highline Wealth Partners LLC now owns 8,286 shares of the semiconductor manufacturer’s stock valued at $1,775,000 after purchasing an additional 8,120 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.