Advanced Micro Devices (NASDAQ:AMD) Shares Up 3% Following Analyst Upgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD) shot up 3% on Wednesday after Piper Sandler upgraded the stock to a strong-buy rating. The stock traded as high as $526.79 and last traded at $521.09. 22,010,826 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 33,884,168 shares. The stock had previously closed at $505.74.

AMD has been the subject of several other research reports. Roth Capital raised their price objective on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Stifel Nicolaus increased 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. Loop Capital raised shares of Advanced Micro Devices to a “strong-buy” rating in a research report on Tuesday, June 16th. Royal Bank Of Canada restated a “sector perform” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Finally, William Blair reaffirmed a “market perform” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $565.12.

Insider Buying and Selling

In other news, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares in the company, valued at approximately $76,316,924.32. This trade represents a 8.52% decrease in their position. 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 Mark D. Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction on 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 sale, the executive vice president directly owned 1,261,461 shares of the company’s stock, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 107,577 shares of company stock valued at $51,922,920 over the last ninety days. 0.50% of the stock is currently owned by corporate insiders.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Analyst upgrades and higher targets supported the stock. Piper Sandler upgraded AMD to “strong buy,” while CLSA raised its view to “moderate buy.” Recent bullish calls have cited potential price targets as high as $600–$710, driven by expected gains in AI accelerators and server CPUs. AMD analyst upgrades
• Positive Sentiment: Goldman Sachs conference commentary highlighted AMD’s AI opportunity. AMD’s presentation and related investor coverage emphasized expanding data-center demand, strategic AI partnerships and infrastructure investments. The company’s CFO has said its addressable market could reach approximately $2 trillion and expects the data-center business to double in 2027. Why AMD stock is up
• Positive Sentiment: Server CPU growth remains a key bullish theme. Analysts continue to expect AMD to gain share in the server processor market as cloud providers and enterprises expand computing capacity. Coverage also points to the upcoming MI450 product cycle as a potential catalyst for AMD’s AI accelerator business. AMD server CPU growth
• Positive Sentiment: Industry demand data reinforced the AI spending outlook. Taiwan Semiconductor Manufacturing Company reported August revenue growth of 53.3% year over year, suggesting sustained orders from hyperscalers and enterprise hardware customers. The result supports demand for AMD’s chips, although it also underscores tight manufacturing and advanced-packaging capacity. TSMC August revenue
• Neutral Sentiment: Institutional trading activity added momentum but not fundamental evidence. Reports cited options purchases involving AMD and strong semiconductor order-flow activity, which may amplify short-term volatility without confirming long-term earnings changes. Options activity involving AMD
• Negative Sentiment: Competition and valuation remain risks. Coverage comparing AMD with Nvidia and Broadcom notes that Nvidia retains stronger AI infrastructure leadership and profitability, while AMD trades at a demanding valuation. Rising manufacturing, memory and packaging costs could also pressure margins even as end-market demand remains strong. Nvidia versus AMD

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC increased its holdings in shares of Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after acquiring an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC lifted its stake in Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock worth $1,001,000 after purchasing an additional 234 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in Advanced Micro Devices by 125.1% during the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after purchasing an additional 2,970 shares during the last quarter. United Bank boosted its holdings in Advanced Micro Devices by 22.0% in the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after purchasing an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock valued at $1,310,000 after purchasing an additional 7,228 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The company’s 50 day simple moving average is $495.78 and its 200 day simple moving average is $403.04. The company has a market capitalization of $844.63 billion, a PE ratio of 133.25, a price-to-earnings-growth ratio of 5.40 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.04. The business 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 company’s revenue was up 50.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.48 EPS. As a group, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current year.

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.