Advanced Micro Devices (NASDAQ:AMD) Stock Jumps 11% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price traded up 11% on Friday. The company traded as high as $459.80 and last traded at $449.04. 45,261,630 shares changed hands during trading, an increase of 41% from the average session volume of 32,018,225 shares. The stock had previously closed at $404.40.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD reported record quarterly revenue of $13.38 billion, up 44.7% year over year, and earnings per share of $2.09, beating analyst estimates. Data-center revenue nearly doubled, helped by demand for AI chips. Stock Market Today, Nov. 6: AMD Surges on Record Quarterly Revenue and Stronger Growth Outlook
• Positive Sentiment: Management signaled faster growth ahead, forecasting revenue to rise more than 80% in 2027 and describing AMD’s AI business as poised for further expansion. CEO Lisa Su said the company has good visibility into data-center capacity needs through 2027. Lisa Su Sees AMD’s AI Data Center Business More Than Doubling in 2027
• Positive Sentiment: AMD’s rebound also came as investors bought semiconductor shares after Thursday’s sector-wide rout, suggesting some buyers viewed the selloff as an opportunity. Su pushed back on concerns about AI spending, calling the market’s reaction short-sighted. Chip Stocks Rebound, but Is the AI Selloff Over?
• Negative Sentiment: Some analysts warn that AMD’s premium valuation leaves the stock vulnerable if growth expectations or broader enthusiasm for AI weaken. A recent downgrade cited competition from Nvidia and Arm, as well as potential multiple compression. AMD: This Selloff Isn’t Enough
• Negative Sentiment: Despite the rebound, investors remain concerned about AI-chip valuations, heavy data-center spending, possible regulation and the durability of customer returns. These sector pressures could keep AMD shares volatile. AI Stocks Hit by Midterm Shock and Data-Center Spending Concerns

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on AMD shares. Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 1st. Wells Fargo & Company cut their price target on shares of Advanced Micro Devices from $700.00 to $650.00 and set an “overweight” rating for the company in a report on Wednesday. Stifel Nicolaus raised their price objective on Advanced Micro Devices from $700.00 to $725.00 and gave the stock a “buy” rating in a research note on Wednesday. TD Cowen reissued a “buy” rating on shares of Advanced Micro Devices in a research report on Monday, October 19th. Finally, Robert W. Baird set a $1,250.00 price objective on Advanced Micro Devices in a research note on Friday, July 24th. Three research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $643.69.

Advanced Micro Devices Trading Up 11.0%

The firm has a market capitalization of $736.46 billion, a price-to-earnings ratio of 97.62, a price-to-earnings-growth ratio of 4.56 and a beta of 2.49. The company has a current ratio of 2.72, a quick ratio of 1.91 and a debt-to-equity ratio of 0.10. The company has a fifty day moving average price of $546.81 and a 200-day moving average price of $414.98.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The firm had revenue of $13.38 billion for the quarter, compared to the consensus estimate of $13.10 billion. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The firm’s revenue was up 44.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.20 earnings per share. On average, equities research analysts predict that Advanced Micro Devices, Inc. will post 6.59 EPS for the current year.

Insider Buying and Selling

In other news, CEO Lisa Su sold 25,000 shares of the stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the transaction, the chief executive officer owned 74,211 shares in the company, valued at $37,609,392.69. This represents a 25.20% decrease in their position. The sale was disclosed in a document filed 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 17,262 shares of the firm’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the transaction, the executive vice president owned 353,317 shares in the company, valued at $191,038,501.90. This represents a 4.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 231,100 shares of company stock valued at $114,867,400. 0.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors have recently bought and sold shares of the stock. DecisionPoint Financial LLC boosted its position in Advanced Micro Devices by 79.2% during the third quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. bought a new position in shares of Advanced Micro Devices in the third quarter valued at approximately $29,000. JNBA Financial Advisors raised its position in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after purchasing an additional 30 shares during the period. Downshift Financial LLC lifted its stake in shares of Advanced Micro Devices by 850.0% in the third quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer’s stock worth $35,000 after buying an additional 51 shares during the last quarter. Finally, Sawyer & Company Inc acquired a new stake in shares of Advanced Micro Devices in the third quarter worth $37,000. 71.34% of the stock is currently owned by institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors.

The company’s product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.