Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.8% – Still a Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price shot up 2.8% during mid-day trading on Monday. The company traded as high as $533.50 and last traded at $531.28. Approximately 16,638,203 shares traded hands during trading, a decline of 48% from the average daily volume of 31,835,756 shares. The stock had previously closed at $516.79.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD will invest $1 billion in Meta’s equity offering as the companies expand their AI infrastructure partnership. Meta is testing AMD Helios rack-scale systems, uses EPYC processors and Instinct GPUs, and plans to deploy a customized AMD GPU. The agreement could improve AMD’s visibility with one of the world’s largest AI infrastructure customers. AMD to Invest $1 Billion in Meta as Companies Expand AI Infrastructure Partnership
• Positive Sentiment: Investors are positioning ahead of AMD’s November 3 third-quarter earnings report. Wall Street expects continued revenue and profit growth, while AMD’s Instinct accelerators are gaining traction as an alternative to Nvidia GPUs among hyperscale customers. AMD also has agreements with Meta and OpenAI covering deployments of up to 6 gigawatts of GPUs.
• Positive Sentiment: Analysts raised their targets, including Susquehanna to $650 from $620 with a positive rating and Aletheia Capital to $800 from $700 with a Buy rating. AMD’s expanded $2 trillion-to-$3 trillion total addressable market and long-term earnings ambitions add to the bullish growth narrative.
• Neutral Sentiment: The Meta transaction is drawing scrutiny because chip suppliers are investing in their major customer while also supplying its infrastructure, raising questions about circular financing and how much of the announced demand represents incremental spending.
• Negative Sentiment: Valuation remains a key risk. Commentators argue AMD has risen faster than its fundamentals, with a high earnings multiple leaving the stock vulnerable if November guidance disappoints. Higher expected TSMC prices for advanced packaging and wafers could also pressure AMD’s costs.
• Negative Sentiment: ARK Invest continued selling AMD shares, while reported insider activity shows substantial selling and no open-market purchases over the past six months. These transactions may weigh on sentiment, although they do not necessarily indicate a change in AMD’s business outlook.

Analyst Upgrades and Downgrades

AMD has been the topic of a number of recent research reports. Robert W. Baird set a $1,250.00 target price on Advanced Micro Devices in a research note on Friday, July 24th. Morgan Stanley boosted their price target on Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 5th. Zacks Research lowered Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 1st. Piper Sandler initiated coverage on Advanced Micro Devices in a research report on Tuesday, September 15th. They set an “overweight” rating and a $600.00 price objective on the stock. Finally, TD Cowen reissued a “buy” rating on shares of Advanced Micro Devices in a report on Monday, October 19th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $607.57.

Advanced Micro Devices Stock Performance

The stock has a 50 day simple moving average of $543.70 and a 200 day simple moving average of $404.03. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The stock has a market cap of $944.29 billion, a P/E ratio of 148.70, a price-to-earnings-growth ratio of 5.30 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The firm had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the firm earned $0.48 EPS. The company’s quarterly revenue was up 50.1% compared to the same quarter last year. On average, equities analysts expect that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Norrod sold 17,262 shares of the company’s stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the sale, the executive vice president directly owned 353,317 shares in the company, valued at $191,038,501.90. This represents a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at $76,316,924.32. This trade represents a 8.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 231,100 shares of company stock worth $114,867,400 in the last 90 days. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of AMD. Southpoint Capital Advisors LP increased its position in shares of Advanced Micro Devices by 50.0% during the 1st quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock valued at $183,087,000 after purchasing an additional 300,000 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Advanced Micro Devices by 6.0% in the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock worth $1,045,954,000 after buying an additional 291,165 shares during the last quarter. Ferguson Wellman Capital Management Inc. lifted its position in Advanced Micro Devices by 6,968.7% in the third quarter. Ferguson Wellman Capital Management Inc. now owns 140,313 shares of the semiconductor manufacturer’s stock worth $85,995,000 after buying an additional 138,328 shares during the last quarter. Douglas Lane & Associates LLC lifted its position in Advanced Micro Devices by 2,748.0% in the third quarter. Douglas Lane & Associates LLC now owns 85,952 shares of the semiconductor manufacturer’s stock worth $52,582,000 after buying an additional 82,934 shares during the last quarter. Finally, Nan Shan Life Insurance Co. Ltd. boosted its stake in Advanced Micro Devices by 1,288.6% during the second quarter. Nan Shan Life Insurance Co. Ltd. now owns 220,170 shares of the semiconductor manufacturer’s stock worth $127,899,000 after buying an additional 204,315 shares during the period. 71.34% of the stock is currently owned by institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.