Advanced Micro Devices (NASDAQ:AMD) Trading 1.6% Higher – What’s Next?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares rose 1.6% on Thursday . The company traded as high as $256.08 and last traded at $253.73. Approximately 37,286,833 shares were traded during trading, a decline of 6% from the average daily volume of 39,719,148 shares. The stock had previously closed at $249.80.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Momentum: AMD is on a multi‑session winning streak and market commentary highlights renewed investor enthusiasm around server CPUs for AI workloads, which is helping buying interest. Read More.
• Positive Sentiment: AI/data‑center growth thesis: Analysts and company commentary point to strong AI revenue potential (AMD targets very high AI CAGR), driven by Helios racks, Instinct GPUs and global partner deals — supporting expectations for sizable data‑center revenue upside. Read More.
• Positive Sentiment: Customer/infra validation: Riot Platforms disclosed a multi‑year Rockdale lease with AMD (initial 25 MW with option to scale to 200 MW), a tangible signal that AMD is securing dedicated data‑center capacity for AI/HPC deployments. Read More.
• Positive Sentiment: Governance: AMD added former Accenture CFO KC McClure to the board, which investors view as strengthening financial oversight as the company scales capital‑intensive AI initiatives. Read More.
• Neutral Sentiment: Product convenience: A new Adrenalin driver/AI bundle update aims to simplify AI setup on consumer/pro‑level GPUs — a small but positive usability improvement that supports adoption. Read More.
• Neutral Sentiment: Analyst coverage: Many boutiques and large firms remain bullish and have raised price targets, keeping a supportive analyst backdrop ahead of AMD’s upcoming quarter; that said, targets vary widely. Read More.
• Negative Sentiment: Valuation/rotation risk: Some analysts warn tech momentum may fade and that AMD’s rally already prices much of the AI upside — raising the risk of near‑term underperformance if growth or guidance disappoints. Read More.
• Negative Sentiment: Insider selling: Recent disclosed insider sales (including an SVP sale) may spook some investors ahead of earnings, even if sales can be routine. Read More.
• Negative Sentiment: Policy/tariff risk: Reports of tariffs on certain MI‑series chips could pressure margins or order timing if implemented more broadly; this is a regulatory downside to monitor. Read More.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Melius Research set a $380.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, November 12th. Raymond James Financial initiated coverage on Advanced Micro Devices in a research note on Thursday, November 20th. They set an “outperform” rating and a $377.00 price target on the stock. Citigroup reaffirmed a “neutral” rating on shares of Advanced Micro Devices in a research note on Thursday, January 15th. Deutsche Bank Aktiengesellschaft set a $235.00 price objective on Advanced Micro Devices and gave the company a “hold” rating in a report on Tuesday, October 14th. Finally, CICC Research raised Advanced Micro Devices from a “market perform” rating to an “outperform” rating and set a $265.00 target price on the stock in a research note on Friday, November 7th. Two analysts have 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. Based on data from MarketBeat.com, Advanced Micro Devices currently has an average rating of “Moderate Buy” and an average price target of $279.67.

Advanced Micro Devices Stock Up 1.6%

The company has a market cap of $413.08 billion, a price-to-earnings ratio of 125.61, a PEG ratio of 0.97 and a beta of 1.95. The firm’s fifty day simple moving average is $218.29 and its 200 day simple moving average is $197.19. The company has a current ratio of 2.31, a quick ratio of 1.68 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, November 4th. The semiconductor manufacturer reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03. Advanced Micro Devices had a return on equity of 8.04% and a net margin of 10.32%.The firm had revenue of $9.25 billion for the quarter, compared to analyst estimates of $8.76 billion. During the same quarter in the prior year, the company posted $0.92 earnings per share. Advanced Micro Devices’s revenue for the quarter was up 35.6% compared to the same quarter last year. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $215.14, for a total transaction of $26,892,500.00. Following the sale, the chief executive officer owned 3,277,476 shares of the company’s stock, valued at approximately $705,116,186.64. This trade represents a 3.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Ava Hahn sold 2,442 shares of the business’s stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $234.42, for a total value of $572,453.64. Following the sale, the senior vice president owned 16,359 shares of the company’s stock, valued at approximately $3,834,876.78. The trade was a 12.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 164,000 shares of company stock worth $36,034,173 over the last 90 days. 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 added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in Advanced Micro Devices by 0.9% during the third quarter. Vanguard Group Inc. now owns 155,997,751 shares of the semiconductor manufacturer’s stock worth $25,238,876,000 after purchasing an additional 1,348,892 shares in the last quarter. State Street Corp increased its position in Advanced Micro Devices by 2.4% during the 3rd quarter. State Street Corp now owns 73,824,441 shares of the semiconductor manufacturer’s stock worth $11,944,056,000 after purchasing an additional 1,755,182 shares during the period. Geode Capital Management LLC increased its position in Advanced Micro Devices by 1.4% during the 2nd quarter. Geode Capital Management LLC now owns 36,690,685 shares of the semiconductor manufacturer’s stock worth $5,181,556,000 after purchasing an additional 514,445 shares during the period. Norges Bank purchased a new position in shares of Advanced Micro Devices during the 2nd quarter worth approximately $3,094,662,000. Finally, Amundi lifted its holdings in shares of Advanced Micro Devices by 17.5% in the 3rd quarter. Amundi now owns 13,486,227 shares of the semiconductor manufacturer’s stock valued at $2,181,937,000 after buying an additional 2,012,865 shares during the period. Hedge funds and other institutional investors own 71.34% of the company’s stock.

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.