Advanced Micro Devices (NASDAQ:AMD) Trading 8.8% Higher – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price traded up 8.8% on Tuesday . The company traded as high as $216.71 and last traded at $213.84. 80,991,629 shares changed hands during trading, an increase of 98% from the average session volume of 40,817,715 shares. The stock had previously closed at $196.60.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: Large Meta multiyear AI deal validates AMD as a hyperscaler supplier — Meta agreed to deploy up to 6GW of AMD GPUs (multi‑year, multi‑generation), a move that materially de‑risks AMD’s ability to scale in the AI infrastructure market and pressures Nvidia’s dominance. Reuters: AMD clinches second mega-chip supply deal
• Positive Sentiment: Wall Street bullishness and analyst support — Evercore ISI and other firms reiterated Buy/Outperform stances and higher targets after the announcement, citing underappreciated EPS upside from OpenAI and Meta partnerships. TipRanks: Buy rating driven by Meta deal
• Positive Sentiment: Immediate market reaction — Multiple outlets report a sharp premarket and intraday pop as investors price in large cloud orders and potential equity warrants from Meta; trading volume spiked well above average. Investopedia: AMD just won another massive AI chip deal
• Neutral Sentiment: Technical / positioning context — Coverage notes AMD is testing key resistance levels after the jump; elevated volume and index flows (AMD is a meaningful S&P/ETF holding) are amplifying moves but could bring short‑term mean reversion. Barchart: AMD challenging resistance
• Neutral Sentiment: Earnings / fundamentals backdrop — AMD recently posted a revenue and EPS beat (Q4) and is guiding data‑center growth; the Meta deal accelerates long‑term TAM but raises near‑term execution and capital intensity questions. MarketBeat: AMD profile & recent results
• Negative Sentiment: Deal terms and margin/price concerns — Some commentators ask whether large hyperscaler deals include steep discounts, custom pricing, or engineering tradeoffs (i.e., “giving away the store”), which could pressure gross margins on large volume contracts. The Motley Fool: MI450 mega-deal analysis
• Negative Sentiment: Competition and narrative risk — Meta also struck large Nvidia deals recently; analysts warn the market remains a multi‑vendor battleground and any shift back to Nvidia or slower deploy rates could undercut the enthusiasm. Seeking Alpha: Critical take on the news

Wall Street Analyst Weigh In

A number of research analysts recently commented on AMD shares. Melius Research set a $380.00 price objective on Advanced Micro Devices in a research note on Wednesday, November 12th. Barclays restated an “overweight” rating on shares of Advanced Micro Devices in a research report on Wednesday, November 12th. Wells Fargo & Company reiterated an “overweight” rating and issued a $345.00 price objective on shares of Advanced Micro Devices in a research report on Friday, January 30th. Sanford C. Bernstein set a $235.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, February 4th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Advanced Micro Devices in a report on Tuesday, December 2nd. One investment 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 stock. According to MarketBeat, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average target price of $289.83.

Advanced Micro Devices Stock Up 8.8%

The company has a market capitalization of $348.65 billion, a price-to-earnings ratio of 80.69, a price-to-earnings-growth ratio of 0.75 and a beta of 1.94. The company has a quick ratio of 2.01, a current ratio of 2.85 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average price of $219.46 and a 200-day moving average price of $207.52.

Advanced Micro Devices (NASDAQ:AMD) last announced its 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 net margin of 12.52% and a return on equity of 8.84%. The company had revenue of $10.27 billion for the quarter, compared to the consensus estimate of $9.65 billion. During the same period in the previous year, the business earned $1.09 EPS. The company’s revenue was up 34.1% on a year-over-year basis. As a group, equities analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, SVP Ava Hahn sold 2,442 shares of the firm’s stock in a transaction dated 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 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. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $214.36, for a total value of $26,795,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,152,476 shares in the company, valued at approximately $675,764,755.36. This represents a 3.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 271,892 shares of company stock worth $58,476,908. Corporate insiders own 0.06% of the company’s stock.

Institutional Trading of Advanced Micro Devices

A number of large investors have recently bought and sold shares of AMD. Vanguard Group Inc. grew its stake in Advanced Micro Devices by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock valued at $33,949,256,000 after purchasing an additional 2,525,109 shares in the last quarter. State Street Corp grew its stake in shares of Advanced Micro Devices by 1.5% in the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock valued at $16,044,712,000 after buying an additional 1,094,835 shares in the last quarter. Geode Capital Management LLC raised its position in Advanced Micro Devices by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock worth $8,015,897,000 after acquiring an additional 287,525 shares in the last quarter. Norges Bank acquired a new stake in Advanced Micro Devices in the fourth quarter valued at $4,929,312,000. Finally, Price T Rowe Associates Inc. MD grew its position in shares of Advanced Micro Devices by 0.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,325,288 shares of the semiconductor manufacturer’s stock valued at $4,352,864,000 after acquiring an additional 55,969 shares during the period. 71.34% of the stock is currently 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.