Advanced Micro Devices (NASDAQ:AMD) Shares Up 5.5% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was up 5.5% during trading on Tuesday. The company traded as high as $563.91 and last traded at $560.26. 20,458,614 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 31,781,248 shares. The stock had previously closed at $531.28.

More Advanced Micro Devices News

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

• Positive Sentiment: Meta partnership expands: AMD plans to invest $1 billion in Meta’s equity offering while supplying EPYC processors, Instinct GPUs and Helios rack-scale systems for Meta’s AI infrastructure. Helios systems are already installed and being tested, providing investors with greater visibility into potential large-scale deployments. AMD and Meta Advance Strategic Partnership to Power Meta’s Superintelligence Infrastructure
• Positive Sentiment: AI demand and analyst support: Rosenblatt named AMD its top semiconductor pick ahead of earnings, citing strengthening data-center fundamentals. Susquehanna also reportedly raised its price target to $620 from $550, while a new Vultr cloud region will use a 20-megawatt AMD Instinct MI355X supercluster. Rosenblatt names top semiconductor picks amid data-center strength
• Positive Sentiment: Upcoming earnings catalyst: AMD is scheduled to report fiscal third-quarter results on November 3. Investors are looking for evidence that server CPU demand, AI accelerator sales and future guidance can support the stock’s elevated valuation.
• Neutral Sentiment: Industry-wide momentum: AMD benefited from a broader chip rally following strong AI infrastructure spending expectations and Anthropic’s IPO filing. Nvidia’s planned $3 billion investment in Meta further reinforced the market’s focus on hyperscaler capital commitments. AMD stock rallies on expanded Meta AI infrastructure deal and broader chip rally
• Negative Sentiment: Financing and execution concerns: Some analysts questioned whether chipmakers investing in a major customer’s stock creates “circular financing,” potentially reducing the quality of the demand signal. Meta’s large equity-raising plan could also pressure its shares and raise questions about future returns on AI spending.
• Negative Sentiment: Valuation and selling pressure: AMD trades at a very high earnings multiple, while company insiders and ARK Invest have recently reported sales. Higher advanced-packaging and wafer costs from TSMC could additionally pressure AMD’s margins. Cathie Wood sells AMD and TSMC shares

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Susquehanna boosted their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the stock a “positive” rating in a research note on Wednesday, October 21st. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $540.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Jefferies Financial Group set a $650.00 target price on Advanced Micro Devices in a report on Wednesday, August 5th. Cantor Fitzgerald reissued an “overweight” rating on shares of Advanced Micro Devices in a research report on Monday, October 5th. Finally, Wedbush restated an “outperform” rating and set a $600.00 price target on shares of Advanced Micro Devices in a report on Tuesday, October 20th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average target price of $606.76.

Advanced Micro Devices Price Performance

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $914.61 billion, a PE ratio of 144.03, a price-to-earnings-growth ratio of 5.30 and a beta of 2.45. The stock’s 50-day moving average is $542.28 and its two-hundred day moving average is $400.69.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (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 business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. The company’s revenue for the quarter was up 50.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.48 earnings per share. On average, equities analysts predict that Advanced Micro Devices, Inc. will post 6.50 EPS for the current year.

Insider Activity

In related news, EVP Forrest Norrod sold 17,262 shares of the business’s stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the transaction, the executive vice president owned 353,317 shares in the company, valued at $191,038,501.90. The trade was a 4.66% decrease in their position. The transaction was disclosed in a legal 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, CEO Lisa Su sold 25,000 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total value of $12,669,750.00. Following the completion of the transaction, the chief executive officer directly owned 74,211 shares in the company, valued at $37,609,392.69. This trade represents a 25.20% 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. Insiders sold 231,100 shares of company stock worth $114,867,400 in the last three months. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. lifted its holdings in Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after buying an additional 4,535,126 shares in the last quarter. State Street Corp boosted its position in Advanced Micro Devices by 2.9% in the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after buying an additional 2,149,563 shares during the period. Bank of America Corp DE bought a new position in Advanced Micro Devices in the 2nd quarter worth about $7,022,226,000. Jennison Associates LLC grew its stake in Advanced Micro Devices by 5.8% in the 2nd 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. Finally, Wellington Management Group LLP grew its stake in Advanced Micro Devices by 33.9% in the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock worth $5,422,444,000 after acquiring an additional 2,365,419 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.