Advanced Micro Devices (NASDAQ:AMD) Sets New 1-Year High – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price hit a new 52-week high during trading on Thursday . The company traded as high as $510.21 and last traded at $495.54, with a volume of 27478010 shares traded. The stock had previously closed at $503.89.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD’s data center business remains a major growth engine, with one recent write-up highlighting 57% year-over-year data center revenue growth to $5.78 billion, driven by EPYC CPU demand and ramping Instinct AI products. Article title
• Positive Sentiment: AMD got a lift from a new OneQode collaboration to deploy AMD Instinct MI355X GPUs and plan for AMD’s Helios rack-scale solution, reinforcing demand for its AI infrastructure products. Article title
• Positive Sentiment: Analyst commentary remains constructive, with multiple recent notes describing AMD as a beneficiary of the AI spending cycle and highlighting upside tied to continued data center and CPU gains. Article title
• Neutral Sentiment: Some articles focused on AMD’s rapid valuation expansion and the question of whether the stock can become a trillion-dollar company, which keeps expectations high but does not change the near-term growth story. Article title
• Negative Sentiment: Sentiment was pressured by reports that Cathie Wood continued trimming AMD exposure, and by concerns that Nvidia could move into the standalone server CPU market, increasing competitive pressure on AMD’s growth areas. Article title Article title

Wall Street Analyst Weigh In

A number of brokerages recently commented on AMD. Melius Research set a $540.00 price objective on Advanced Micro Devices in a research report on Monday, May 18th. Needham & Company LLC upgraded Advanced Micro Devices to a “buy” rating in a research report on Wednesday, May 6th. Truist Financial set a $478.00 target price on Advanced Micro Devices in a research report on Wednesday, May 6th. Royal Bank Of Canada lifted their target price on Advanced Micro Devices from $325.00 to $400.00 and gave the company a “sector perform” rating in a research report on Wednesday, May 6th. Finally, Wolfe Research assumed coverage on Advanced Micro Devices in a research report on Wednesday, May 6th. They issued a “peer perform” rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus price target of $410.00.

Advanced Micro Devices Price Performance

The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The company has a market cap of $808.03 billion, a PE ratio of 162.47, a P/E/G ratio of 1.48 and a beta of 2.40. The stock has a 50-day simple moving average of $315.01 and a 200 day simple moving average of $251.86.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company’s quarterly revenue was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.96 EPS. Equities analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current year.

Insider Transactions at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $445.51, for a total value of $55,688,750.00. Following the sale, the chief executive officer owned 3,021,899 shares in the company, valued at approximately $1,346,286,223.49. The trade was a 3.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of the business’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $350.00, for a total value of $10,962,000.00. Following the completion of the sale, the executive vice president owned 1,236,037 shares in the company, valued at $432,612,950. This represents a 2.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 329,085 shares of company stock worth $114,051,007 over the last quarter. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of AMD. Joseph Group Capital Management acquired a new position in Advanced Micro Devices during the 4th quarter worth $25,000. Koesten Hirschmann & Crabtree INC. grew its stake in Advanced Micro Devices by 61.0% during the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 61 shares in the last quarter. Sarver Vrooman Wealth Advisors acquired a new position in Advanced Micro Devices during the 4th quarter worth $27,000. Cornerstone Financial Management LLC acquired a new position in Advanced Micro Devices during the 4th quarter worth $27,000. Finally, Basepoint Wealth LLC acquired a new position in Advanced Micro Devices during the 4th quarter worth $30,000. 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.