Advanced Micro Devices (NASDAQ:AMD) Lowered to Hold Rating by Zacks Research

Zacks Research lowered shares of Advanced Micro Devices (NASDAQ:AMD) from a strong-buy rating to a hold rating in a research note issued to investors on Tuesday,Zacks reports.

Several other analysts have also weighed in on the company. Morgan Stanley upped their target price on Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a report on Wednesday, August 5th. Wall Street Zen upgraded shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research report on Saturday, August 29th. HSBC downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and raised their target price for the company from $335.00 to $340.00 in a report on Monday, May 4th. Bank of America upped their price target on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Finally, Melius Research set a $660.00 price objective on shares of Advanced Micro Devices in a research note on Friday, July 24th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average price target of $553.72.

Advanced Micro Devices Price Performance

AMD stock opened at $457.06 on Tuesday. The firm has a 50 day moving average of $501.61 and a 200-day moving average of $390.93. The company has a market cap of $746.14 billion, a price-to-earnings ratio of 117.50, a PEG ratio of 4.76 and a beta of 2.48. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. Advanced Micro Devices has a 12-month low of $149.22 and a 12-month high of $584.73.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter in the prior year, the firm posted $0.48 EPS. The company’s revenue was up 50.1% compared to the same quarter last year. As a group, equities analysts expect that Advanced Micro Devices will post 6.44 EPS for the current fiscal year.

Insider Activity

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the sale, the executive vice president directly owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 15,000 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $480.94, for a total value of $7,214,100.00. Following the completion of the transaction, the chief executive officer owned 3,102,156 shares of the company’s stock, valued at $1,491,950,906.64. This trade represents a 0.48% decrease in their ownership of the stock. 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 232,577 shares of company stock valued at $109,509,170 in the last 90 days. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several large investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its position in Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after purchasing an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC boosted its holdings in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock valued at $1,001,000 after purchasing an additional 234 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Advanced Micro Devices by 125.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock valued at $758,000 after purchasing an additional 2,970 shares during the last quarter. United Bank grew its stake in shares of Advanced Micro Devices by 22.0% during the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after buying an additional 2,392 shares during the period. Finally, Schnieders Capital Management LLC. grew its stake in shares of Advanced Micro Devices by 361.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock valued at $1,310,000 after buying an additional 7,228 shares during the period. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s AI infrastructure collaboration with Cisco and Saudi Arabia’s HUMAIN is gaining traction: MI355X-based systems are reportedly live and serving customers, with plans for an additional 250 megawatts beginning in 2027 and as much as 1 gigawatt by 2030. The buildout could create a significant long-term data-center revenue opportunity. AMD Saudi Arabia AI infrastructure
• Positive Sentiment: Several bullish commentaries argue that AMD could benefit from the next phase of AI spending, particularly inference workloads and server CPUs. One forecast sees the company potentially reaching a $2 trillion valuation by 2030, while analysts cited elsewhere see additional upside from current levels. AMD $2 trillion forecast
• Positive Sentiment: Tiger Global reportedly opened an AMD position while reducing its Alphabet stake, suggesting some institutional investors are rotating toward AI-chip exposure. Tiger Global AMD position
• Neutral Sentiment: AMD remains above a widely watched support level near $450, but technical coverage says higher U.S. interest rates are weighing on high-growth technology stocks and limiting near-term momentum. AMD technical levels and rates
• Negative Sentiment: J.P. Morgan reportedly views AMD as facing execution challenges relative to Nvidia. Nvidia’s investment in MediaTek and continued efforts to defend its AI-chip ecosystem also reinforce concerns that AMD must execute effectively to gain share. J.P. Morgan Nvidia versus AMD
• Negative Sentiment: Investors are also taking profits after AMD’s substantial 2026 advance. Commentary highlights valuation pressure, with the stock trading at a very high earnings multiple, while ARK Invest has continued reducing its AMD position. ARK Invest reduces AMD shares

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.