Advanced Micro Devices (NASDAQ:AMD) Shares Gap Up – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $196.60, but opened at $211.63. Advanced Micro Devices shares last traded at $211.6280, with a volume of 29,413,599 shares traded.

More Advanced Micro Devices News

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

• Positive Sentiment: Meta agreed to buy up to 6GW of AMD GPUs over multiple years, a large commercial win that could drive sustained data?center revenue and share gains vs. Nvidia. AMD clinches second mega chip supply deal, this time with Meta
• Positive Sentiment: The agreement may include warrants/options allowing Meta to acquire up to ~10% of AMD, increasing strategic alignment and potential long?term partnership benefits. Meta strikes up to $100B AMD chip deal as it chases ‘personal superintelligence’
• Positive Sentiment: The deal is an endorsement of AMD’s MI450 GPUs and Helios rack?scale architecture — evidence hyperscalers will buy AMD multi?generation stacks, supporting medium/long?term margins and data?center growth. AMD and Meta Announce Expanded Strategic Partnership to Deploy 6 Gigawatts of AMD GPUs
• Neutral Sentiment: Context: AMD recently reported strong Q4 results and accelerating data?center revenue, which amplifies the positive read on this contract — but the deal’s multi?year timing means revenue will phase in over time. AMD Just Won Another Massive AI Chip Deal. Its Stock Is Soaring.
• Negative Sentiment: Some bearish commentary and analyst scrutiny warn of execution risk, competitive pressure from Nvidia, and high valuation multiples that could cap near?term upside. AMD: I Smell Desperation (Rating Downgrade)
• Negative Sentiment: Insider selling activity has been notable recently (multiple executives have sold shares), a datapoint some investors view as a caution even as institutions rebalance positions. $AMD stock is up 6% today. Here’s what we see in our data.

Analyst Upgrades and Downgrades

AMD has been the subject of a number of research analyst reports. Morgan Stanley reduced their price target on shares of Advanced Micro Devices from $260.00 to $255.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 4th. China Renaissance initiated coverage on shares of Advanced Micro Devices in a research note on Tuesday, January 13th. They set a “buy” rating and a $291.00 target price for the company. KeyCorp boosted their target price on shares of Advanced Micro Devices from $270.00 to $300.00 and gave the company an “overweight” rating in a research note on Wednesday, February 4th. Mizuho raised their price target on Advanced Micro Devices from $275.00 to $285.00 and gave the stock an “outperform” rating in a research note on Wednesday, November 12th. Finally, Stifel Nicolaus lifted their price objective on Advanced Micro Devices from $240.00 to $280.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and a consensus target price of $288.17.

Advanced Micro Devices Price Performance

The firm has a 50 day moving average price of $219.46 and a 200 day moving average price of $207.52. The stock has a market capitalization of $343.44 billion, a PE ratio of 79.76, a price-to-earnings-growth ratio of 0.75 and a beta of 1.94. The company has a current ratio of 2.85, a quick ratio of 2.01 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.21. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The business had revenue of $10.27 billion during the quarter, compared to analyst estimates of $9.65 billion. During the same quarter in the previous year, the company posted $1.09 earnings per share. Advanced Micro Devices’s revenue for the quarter was up 34.1% on a year-over-year basis. Research analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $214.36, for a total transaction of $26,795,000.00. Following the transaction, the chief executive officer owned 3,152,476 shares of the company’s stock, valued at $675,764,755.36. The trade was a 3.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Ava Hahn sold 2,442 shares of the stock in a transaction on Friday, January 16th. The stock was sold at an average price of $234.42, for a total transaction of $572,453.64. Following the completion of the sale, the senior vice president directly owned 16,359 shares of the company’s stock, valued at approximately $3,834,876.78. This trade represents a 12.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 271,892 shares of company stock worth $58,476,908. Company insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

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

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.