Advanced Micro Devices (NASDAQ:AMD) Trading Up 2.5% – Time to Buy?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) shot up 2.5% during trading on Friday . The company traded as high as $521.06 and last traded at $516.13. Approximately 18,759,479 shares changed hands during trading, a decline of 44% from the average daily volume of 33,682,234 shares. The stock had previously closed at $503.60.

Key Advanced Micro Devices News

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

• Positive Sentiment: Analyst upgrades and bullish targets: Piper Sandler upgraded AMD to “strong buy,” while CLSA raised its rating to “moderate buy.” Other analysts cited potential price targets near $600, supported by expected server CPU market-share gains and accelerating AI infrastructure demand. Piper Sandler AMD and Qualcomm rating article
• Positive Sentiment: AI opportunity remains the central catalyst: AMD highlighted an addressable AI market that could exceed $2 trillion. Investors are also focusing on the Helios platform, forthcoming MI450 products, strategic AI partnerships, and the company’s expanding data-center presence. What’s Going On With AMD Stock Friday
• Positive Sentiment: Strong semiconductor demand supports the outlook: TSMC reported August revenue growth of 53.3% year over year, indicating robust orders from cloud and enterprise customers. The data reinforces expectations for continued demand for AMD’s CPUs and AI accelerators, although manufacturing and packaging capacity remain important constraints. TSMC revenue jumps 53 percent
• Neutral Sentiment: Institutional options activity adds visibility: Situational Awareness reportedly purchased options in AMD, while separate reports pointed to heavy institutional options flow. These transactions may amplify volatility but do not establish a fundamental change in AMD’s earnings outlook. Situational Awareness options activity
• Negative Sentiment: Valuation and competitive risks are rising: A Seeking Alpha analysis downgraded AMD, arguing that the long-term bull case remains intact but that much of the easy upside has already been captured. Broadcom’s custom AI chips and Nvidia’s stronger profitability also present competitive challenges, particularly with AMD trading at elevated earnings multiples. AMD rating downgrade analysis

Wall Street Analysts Forecast Growth

AMD has been the topic of a number of recent analyst reports. Wolfe Research set a $450.00 price objective on shares of Advanced Micro Devices and gave the stock an “outperform” rating in a research report on Monday, June 15th. Wall Street Zen upgraded Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. DA Davidson raised their price target on Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. TD Cowen reaffirmed a “buy” rating on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, BMO Capital Markets assumed coverage on Advanced Micro Devices in a research note on Thursday, August 20th. They issued an “outperform” rating and a $550.00 target price on the stock. Four analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Advanced Micro Devices has an average rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The firm has a fifty day simple moving average of $495.78 and a 200 day simple moving average of $403.04. The company has a market capitalization of $842.23 billion, a PE ratio of 132.63, a P/E/G ratio of 5.40 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business’s revenue was up 50.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.48 EPS. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 EPS for the current year.

Insiders Place Their Bets

In related 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 transaction 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the sale, the senior vice president directly owned 26,623 shares in the company, valued at approximately $13,010,393.87. The trade was a 10.11% 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. In the last 90 days, insiders have sold 107,577 shares of company stock worth $51,922,920. 0.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices in the fourth quarter worth $27,000. Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $30,000. JNBA Financial Advisors boosted its position in shares of Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Finally, Graney & King LLC purchased a new position in Advanced Micro Devices during the 1st quarter worth $31,000. Institutional investors own 71.34% of the company’s stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.