Advanced Micro Devices (NASDAQ:AMD) Hits New 12-Month High – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $556.79 and last traded at $548.6780, with a volume of 5410504 shares trading hands. The stock had previously closed at $511.57.

Key Advanced Micro Devices News

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

• Positive Sentiment: Citi upgraded AMD to Buy and raised its price target to $575 from $460, citing upside in AMD’s GPU business and stronger AI tailwinds.
• Positive Sentiment: Wolfe Research reiterated Outperform and said there is “substantial room for upside” to 2026 and 2027 consensus estimates, helped by incremental CPU strength and the chance of additional gigawatt-scale MI450 customers. Wolfe Research sees substantial upside to AMD estimates
• Positive Sentiment: Other reports highlighted AMD’s AI chip roadmap as a reason bulls remain constructive, suggesting investors are focusing on the company’s long-term AI opportunity despite valuation concerns.
• Positive Sentiment: AMD is also being helped by a broader rally in AI and semiconductor stocks, with premarket strength tied to improved risk sentiment and easing geopolitical concerns.
• Neutral Sentiment: Several articles framed AMD as a possible future $1 trillion company, but also emphasized that valuation is already elevated and that execution risks remain.
• Neutral Sentiment: Market commentary noted that some of AMD’s gains are driven by sector momentum rather than a single company-specific catalyst, so part of the move may reflect sentiment across chip stocks.

Analyst Ratings Changes

Several research firms have recently issued reports on AMD. Cantor Fitzgerald increased their price objective on shares of Advanced Micro Devices to $500.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Wedbush increased their price objective on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the company an “outperform” rating in a report on Monday, May 4th. Weiss Ratings upgraded shares of Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, May 6th. The Goldman Sachs Group raised shares of Advanced Micro Devices from a “buy” rating to a “buy” rating in a research note on Friday. Finally, JPMorgan Chase & Co. increased their target price on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Advanced Micro Devices presently has an average rating of “Moderate Buy” and a consensus target price of $428.65.

Advanced Micro Devices Trading Up 7.1%

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The company has a market cap of $893.65 billion, a PE ratio of 179.41, a P/E/G ratio of 1.50 and a beta of 2.50. The business’s 50-day simple moving average is $386.41 and its 200-day simple moving average is $274.60.

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

Insider Buying and Selling

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This represents a 4.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the sale, the director owned 87,173 shares of the company’s stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 372,032 shares of company stock worth $158,658,616. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Clal Insurance Enterprises Holdings Ltd grew its stake in Advanced Micro Devices by 12.8% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock valued at $43,000 after buying an additional 24 shares during the last quarter. CLG LLC grew its stake in Advanced Micro Devices by 3.1% in the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock valued at $205,000 after buying an additional 30 shares during the last quarter. Columbia Bank grew its position in Advanced Micro Devices by 0.7% in the 1st quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock worth $1,055,000 after purchasing an additional 34 shares during the last quarter. Evolution Wealth Management Inc. grew its position in Advanced Micro Devices by 11.0% in the 1st quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock worth $72,000 after purchasing an additional 35 shares during the last quarter. Finally, Focused Wealth Management Inc grew its position in Advanced Micro Devices by 2.7% in the 1st quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock worth $291,000 after purchasing an additional 37 shares during the last quarter. Institutional investors and hedge funds own 71.34% of the company’s stock.

About Advanced Micro Devices

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.