Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.2% – Here’s What Happened

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was up 2.2% during mid-day trading on Tuesday . The company traded as high as $513.66 and last traded at $504.20. 16,832,402 shares changed hands during trading, a decline of 50% from the average session volume of 33,550,699 shares. The stock had previously closed at $493.41.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Potential pricing power: Reports that AMD could increase GPU and CPU prices by roughly 10% have raised expectations for improved revenue and margins, although the reports have not been confirmed by AMD. AMD Stock Soars on Reports of GPU and CPU Price Increases
• Positive Sentiment: AI and data-center demand remain key catalysts: Recent commentary points to CPU and GPU ramps staying on track, supply remaining tight and data-center revenue growth supporting stronger second-half expectations. AMD’s ROCm collaboration with SiFive also expands its software ecosystem to RISC-V-based servers. AMD rises as upbeat AI demand commentary and chip-sector rebound support shares
• Positive Sentiment: Analyst and institutional support: Piper Sandler reiterated an Overweight rating with a $600 price target, while several recent targets range from $560 to $700. Institutional investors also reported substantial AMD share purchases in the latest quarter. Why is AMD stock gaining today?
• Neutral Sentiment: Broad semiconductor rally: AMD benefited from a wider rebound in chip and memory stocks as investors looked past the Federal Reserve’s rate increase and renewed concerns about an AI slowdown. AMD was also among the largest contributors to gains in the QQQ and VOO exchange-traded funds.
• Negative Sentiment: Insider selling and competition remain risks: Quiver data shows AMD insiders made 133 open-market sales and no purchases during the past six months. Huawei’s launch of more than 10 AI chips could intensify competition, while AMD’s elevated valuation leaves less room for execution misses. The median analyst target cited by Quiver is below the current trading level. Huawei Takes Aim at Nvidia and AMD

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on AMD shares. Zacks Research lowered Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 1st. Wedbush reaffirmed an “outperform” rating and set a $600.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Robert W. Baird set a $1,250.00 price objective on Advanced Micro Devices in a research report on Friday, July 24th. Argus boosted their target price on Advanced Micro Devices from $450.00 to $625.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Finally, Sanford C. Bernstein restated an “outperform” rating and set a $650.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus price target of $565.12.

Advanced Micro Devices Stock Up 6.4%

The firm has a market capitalization of $889.78 billion, a P/E ratio of 140.07, a P/E/G ratio of 5.23 and a beta of 2.48. The company has a fifty day simple moving average of $494.24 and a 200 day simple moving average of $411.50. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

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

Insider Transactions at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 70,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the transaction, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at approximately $1,536,696,660.80. This represents a 2.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,261 shares of Advanced Micro Devices stock in a transaction on Monday, August 24th. The stock was 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 approximately $171,707,154.15. The trade was a 4.42% 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. In the last quarter, insiders have sold 196,577 shares of company stock valued at $96,850,690. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Advanced Micro Devices

A number of institutional investors have recently made changes to their positions in AMD. JNBA Financial Advisors boosted its holdings in Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 30 shares during the last quarter. Bullseye Investment Management LLC purchased a new position in shares of Advanced Micro Devices in the 2nd quarter worth $44,000. Luminist Capital LLC bought a new stake in shares of Advanced Micro Devices in the second quarter worth $46,000. BOK Financial Private Wealth Inc. purchased a new stake in Advanced Micro Devices during the second quarter valued at $53,000. Finally, Toews Corp ADV bought a new position in Advanced Micro Devices in the second quarter valued at about $66,000. Hedge funds and other 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.