Advanced Micro Devices (NASDAQ:AMD) Hits New 1-Year High – Should You Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $510.21 and last traded at $495.54, with a volume of 27478010 shares. The stock had previously closed at $503.89.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Multiple articles highlighted AMD’s expanding AI and data center opportunity, including bullish takes that the company could be a major winner in the next AI cycle and that Wall Street sees a much larger market opportunity ahead. AMD Could Be the Biggest Winner in the Next AI Battle
• Positive Sentiment: Analyst commentary remained constructive overall, with reports pointing to continued upside potential from AMD’s rapid data center expansion and AI infrastructure demand. Prediction: AMD’s Rapid Data Center Expansion Fuels Bullish Target
• Neutral Sentiment: AMD CEO Lisa Su’s China trip and MIT commencement speech kept the company in the news, but the coverage was mostly about leadership presence and AI messaging rather than a direct business catalyst. In China, AMD CEO Lisa Su is understated while Nvidia’s Huang is more razzmatazz
• Neutral Sentiment: Rocket One’s acceptance into AMD’s AI Developer Program added another ecosystem-related headline, but the near-term financial impact appears limited. Rocket One Accepted into AMD AI Developer Program
• Negative Sentiment: Several pieces urged caution after AMD’s sharp run-up, including a Seeking Alpha downgrade calling the top and an article noting that there may be less room for mistakes at current levels. AMD: Ring, Ring – The Top Is Calling (Downgrade)
• Negative Sentiment: ARK Invest’s Cathie Wood trimmed her AMD stake, adding to investor concerns that some funds may be taking profits after the stock’s strong rally. Ark Investment’s Cathie Wood Just Trimmed Her AMD Stake

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Piper Sandler restated an “overweight” rating on shares of Advanced Micro Devices in a report on Wednesday, February 25th. Needham & Company LLC upgraded shares of Advanced Micro Devices to a “buy” rating in a report on Wednesday, May 6th. Phillip Securities upgraded shares of Advanced Micro Devices from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, February 8th. DA Davidson raised their target price on shares of Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Finally, Wedbush raised their target price on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the stock an “outperform” rating in a report on Monday, May 4th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $410.00.

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $841.43 billion, a PE ratio of 169.19, a PEG ratio of 1.52 and a beta of 2.40. The business has a 50 day moving average price of $327.78 and a 200 day moving average price of $255.70. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same period in the prior year, the firm posted $0.96 earnings per share. The company’s quarterly revenue was up 37.8% on a year-over-year basis. As a group, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction on Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the sale, the executive vice president directly owned 1,236,037 shares of the company’s stock, valued at $432,612,950. This trade represents a 2.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total value of $55,688,750.00. Following the sale, the chief executive officer directly owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This trade represents a 3.97% 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. Over the last three months, insiders sold 329,085 shares of company stock valued at $114,051,007. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors have recently modified their holdings of AMD. Joseph Group Capital Management acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the fourth quarter valued at approximately $27,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices during the fourth quarter valued at approximately $30,000. Finally, Graney & King LLC acquired a new position in shares of Advanced Micro Devices during the first quarter valued at approximately $31,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

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.