Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 1.3% – Here’s Why

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price shot up 1.3% during trading on Tuesday . The company traded as high as $624.52 and last traded at $623.77. Approximately 27,895,899 shares changed hands during trading, a decline of 17% from the average session volume of 33,479,590 shares. The stock had previously closed at $615.52.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AI infrastructure demand is the primary catalyst. AMD’s market capitalization recently surpassed $1 trillion after major commitments from OpenAI, reportedly involving up to six gigawatts of AMD computing capacity, and Oracle, which ordered 50,000 next-generation Instinct MI450 accelerators. These deals support expectations for continued data-center growth. AMD Chips Away at NVIDIA’s AI Throne
• Positive Sentiment: Strong operating momentum supports the rerating. AMD’s latest quarter showed revenue of $11.54 billion, up 50.1% year over year, while data-center revenue increased 107% to $6.7 billion and adjusted EPS exceeded estimates. Management’s goal of potentially doubling data-center sales by 2027 has strengthened the long-term growth narrative. AMD: Welcome to the $1 Trillion Club
• Positive Sentiment: AI agents are broadening the opportunity beyond GPUs. Meta’s Muse has focused investor attention on the CPU capacity needed to coordinate agentic-AI workloads, benefiting AMD’s EPYC server processors alongside its Instinct accelerators. Reports of GDDR7 adoption in Radeon GPUs and a planned price increase on select high-performance chips also point to product demand and potential pricing power. Meta’s Muse Highlights AI Infrastructure
• Neutral Sentiment: Broader market conditions have helped semiconductor stocks. Falling oil prices and Treasury yields, a record Nasdaq, and renewed enthusiasm for technology shares have provided a favorable backdrop for AMD and other chipmakers.
• Negative Sentiment: Investors are taking profits after the historic advance. AMD has risen roughly 185% in 2026, and technical commentary describes the shares as overbought. The $1 trillion milestone may also encourage short-term selling, while options-driven buying or a “gamma squeeze” may not persist. AMD at $1 Trillion
• Negative Sentiment: Valuation and competitive risks remain substantial. AMD trades at a very high earnings multiple, with some analysts preferring NVIDIA or semiconductor ETFs. Supply constraints, execution risk on large AI deployments, and reported insider selling—including sales by CEO Lisa Su—could weigh on the stock if growth expectations moderate.

Analyst Ratings Changes

A number of research firms have recently issued reports on AMD. Zacks Research cut shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 1st. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $650.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. KeyCorp set a $650.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. TD Cowen reiterated a “buy” rating on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Finally, Rosenblatt Securities boosted their price target on Advanced Micro Devices from $665.00 to $700.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $565.12.

Advanced Micro Devices Price Performance

The company has a market capitalization of $1.02 trillion, a P/E ratio of 160.35, a PEG ratio of 5.81 and a beta of 2.48. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The company’s fifty day moving average price is $495.87 and its 200 day moving average price is $419.46.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same period last year, the firm posted $0.48 earnings per share. The firm’s quarterly revenue was up 50.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Insider Activity

In other news, CEO Lisa T. Su sold 70,000 shares of Advanced Micro Devices stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,032,156 shares in the company, valued at $1,536,696,660.80. This trade represents a 2.26% decrease in their ownership of the stock. The sale 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, EVP Paul Grasby sold 15,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the sale, the executive vice president directly owned 117,687 shares of the company’s stock, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 213,838 shares of company stock worth $105,533,836. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. grew its position in shares of Advanced Micro Devices by 3.1% in the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after purchasing an additional 4,535,126 shares in the last quarter. State Street Corp lifted its holdings in shares of Advanced Micro Devices by 2.9% during the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after acquiring an additional 2,149,563 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Advanced Micro Devices by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock worth $8,015,897,000 after acquiring an additional 287,525 shares during the last quarter. Bank of America Corp DE purchased a new position in Advanced Micro Devices in the second quarter worth $7,022,226,000. Finally, Jennison Associates LLC grew its position in Advanced Micro Devices by 5.8% in the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after acquiring an additional 545,575 shares in the last quarter. 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 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.