Advanced Micro Devices (NASDAQ:AMD) Trading 9.9% Higher – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were up 9.9% during mid-day trading on Monday . The company traded as high as $616.69 and last traded at $615.52. Approximately 43,983,280 shares traded hands during trading, an increase of 31% from the average daily volume of 33,482,965 shares. The stock had previously closed at $559.82.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AI infrastructure demand is driving the rally. Recent coverage highlights 107% year-over-year data-center revenue growth, quarterly revenue of $11.54 billion and EPS of $1.66, both ahead of expectations. OpenAI’s planned six-gigawatt AMD deployment and Oracle’s order for 50,000 MI450 accelerators reinforce expectations for continued hyperscaler adoption. AMD Chips Away at NVIDIA’s AI Throne
• Positive Sentiment: AI agents are broadening the opportunity beyond GPUs. Meta’s Muse has prompted investors to focus on the CPU and server infrastructure needed to support inference and agentic workloads. AMD’s EPYC processors could benefit alongside its Instinct accelerators as data centers require more balanced computing systems. Elon Musk Is Going All In on Nvidia, but Are These Two Chip Stocks Better Buys?
• Positive Sentiment: Analyst sentiment and pricing power are improving. Wall Street firms are revising models and targets as AMD’s growth accelerates. Reports that AMD may raise prices on select high-performance chips by about 10% suggest strong demand and potential margin support. Reports of GDDR7 adoption for Radeon GPUs and AMD’s inclusion in semiconductor indexes also add momentum.
• Neutral Sentiment: The market backdrop remains supportive but speculative. A record Nasdaq and renewed enthusiasm for AI and semiconductor stocks are helping AMD, while bullish analysts see further upside. However, the gap between optimistic target increases and warnings of a potential blow-off top is widening. Wall Street Is Actively Re-Rating AMD
• Negative Sentiment: Valuation and profit-taking are key risks. AMD trades at an exceptionally high earnings multiple after a major 2026 rally, leaving the stock vulnerable if growth, MI450 shipments or data-center margins disappoint. Some analysts argue the rally is overextended, and the company’s CEO and other insiders have reported substantial selling without open-market purchases.
• Negative Sentiment: Competition remains intense. Nvidia continues to lead in AI accelerators, while emerging networking-chip companies are targeting bottlenecks around AI data movement. These competitive threats could limit AMD’s market-share gains and pressure future returns.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on AMD. Wells Fargo & Company raised their price objective on shares of Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. Wolfe Research set a $450.00 target price on Advanced Micro Devices and gave the company an “outperform” rating in a research note on Monday, June 15th. Jefferies Financial Group set a $650.00 target price on Advanced Micro Devices in a report on Wednesday, August 5th. Argus raised their price target on Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Finally, Sanford C. Bernstein reissued an “outperform” rating and issued a $650.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. 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 assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $565.12.

Advanced Micro Devices Stock Down 1.2%

The firm has a fifty day moving average price of $497.38 and a 200-day moving average price of $422.43. 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 firm has a market cap of $1.01 trillion, a price-to-earnings ratio of 158.53, a PEG ratio of 6.38 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS 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 analyst estimates of $11.31 billion. During the same period in the prior year, the firm posted $0.48 earnings per share. The business’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 at Advanced Micro Devices

In other news, CEO Lisa Su sold 70,000 shares of the 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 transaction, the chief executive officer directly owned 3,032,156 shares in the company, valued at $1,536,696,660.80. This represents a 2.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the sale, the executive vice president directly owned 160,979 shares in the company, valued at $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 213,838 shares of company stock worth $105,533,836. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Institutional investors have recently made changes to their positions in the stock. JNBA Financial Advisors increased its holdings in Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after purchasing an additional 30 shares during the period. Bullseye Investment Management LLC acquired a new position in Advanced Micro Devices during the 2nd quarter worth about $44,000. Luminist Capital LLC acquired a new position in Advanced Micro Devices during the 2nd quarter worth about $46,000. BOK Financial Private Wealth Inc. bought a new stake in shares of Advanced Micro Devices in the 2nd quarter valued at about $53,000. Finally, Toews Corp ADV acquired a new stake in shares of Advanced Micro Devices in the second quarter valued at about $66,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

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.