Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.5% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 2.5% during mid-day trading on Friday . The company traded as high as $521.06 and last traded at $516.13. Approximately 18,759,479 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 33,682,234 shares. The stock had previously closed at $503.60.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: At the Goldman Sachs Communacopia + Technology Conference, AMD highlighted its AI and data-center opportunity, including the Helios platform and a market that management estimates could reach $2 trillion. The presentation reinforced expectations for continued accelerator, CPU, and infrastructure growth. AMD Goldman Sachs Conference Transcript
• Positive Sentiment: Piper Sandler upgraded AMD to “strong buy,” while CLSA raised the stock to “moderate buy.” Other bullish commentary points to server CPU share gains, agentic-AI adoption, and potential upside from the MI450 launch, with some analysts citing price targets near $600. Piper Sandler AMD Rating
• Positive Sentiment: TSMC reported August revenue growth of 53.3% year over year and 10.1% sequentially, signaling that hyperscaler and enterprise demand for advanced AI chips remains strong. This supports AMD’s data-center growth outlook, despite potential manufacturing and packaging-cost pressures. TSMC August Revenue
• Positive Sentiment: Reported institutional options activity included purchases of AMD positions, adding to favorable trading momentum, though options flows are speculative and do not necessarily indicate long-term fundamentals. AMD Options Flow
• Neutral Sentiment: Analysts continue comparing AMD favorably with Qualcomm, Marvell, and Nvidia because of its CPU and GPU exposure, but these comparisons underscore that AMD must execute successfully against stronger AI incumbents.
• Negative Sentiment: One Seeking Alpha analysis downgraded AMD, arguing that the long-term bull case remains intact but that much of the easier upside is already reflected in the share price. AMD’s high earnings multiple leaves the stock vulnerable to execution, margin, or demand disappointments. AMD Rating Downgrade
• Negative Sentiment: Broadcom’s growing custom-AI-chip business remains a competitive threat, particularly as hyperscalers develop alternatives to merchant GPUs. TSMC’s strong results also highlighted rising costs for fabrication, memory, and advanced packaging that could pressure AMD’s margins.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on AMD shares. Roth Capital upped their price target on Advanced Micro Devices from $500.00 to $650.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Argus raised their price objective on Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. lifted their target price on Advanced Micro Devices from $385.00 to $550.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $700.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Finally, Robert W. Baird set a $1,250.00 price target on shares of Advanced Micro Devices in a research report on Friday, July 24th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $565.12.

Advanced Micro Devices Stock Performance

The firm has a 50-day simple moving average of $495.75 and a two-hundred day simple moving average of $403.83. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $842.57 billion, a price-to-earnings ratio of 132.68, a price-to-earnings-growth ratio of 5.34 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same period in the previous year, the company earned $0.48 EPS. The firm’s revenue was up 50.1% on a year-over-year basis. As a group, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,261 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $459.95, for a total value of $7,939,196.95. Following the completion of the sale, the executive vice president directly owned 373,317 shares of the company’s stock, valued at $171,707,154.15. The trade was a 4.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the transaction, the senior vice president owned 26,623 shares in the company, valued at approximately $13,010,393.87. This trade represents a 10.11% 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. Over the last three months, insiders sold 107,577 shares of company stock valued at $51,922,920. Insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several large investors have recently made changes to their positions in the stock. Southpoint Capital Advisors LP raised its stake in Advanced Micro Devices by 50.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock valued at $183,087,000 after acquiring an additional 300,000 shares during the period. Jefferies Financial Group Inc. lifted its holdings in Advanced Micro Devices by 6,228.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after purchasing an additional 303,154 shares during the last quarter. Boomfish Wealth Group LLC bought a new position in Advanced Micro Devices during the first quarter worth about $1,193,000. Dimensional Fund Advisors LP boosted its position in Advanced Micro Devices by 6.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock worth $1,045,954,000 after purchasing an additional 291,165 shares during the period. Finally, Williamson Legacy Group LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter worth about $1,118,000. Institutional investors own 71.34% of the company’s stock.

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.