Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks on Jim Cramer’s recent game plan. Cramer noted what could happen to the stock despite a “terrific number.” He remarked: After the close, we get earnings from Advanced Micro Devices, AMD. I fear that it could be a terrific number, and the stock will still go down, which has suddenly become the new pattern for semis. Advanced Micro Devices, Inc. (NASDAQ:AMD) makes processors, graphics cards, and AI chips for computers, servers, and gaming sys ...

Company Overview - Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading global semiconductor company that designs and develops a variety of high-performance computing and visualization products, including processors, graphics cards, and AI chips for computers, servers, and gaming systems [2]. Market Position - AMD has emerged as a strong competitor in various segments, particularly in the rapidly growing AI and data center markets, under the leadership of CEO Lisa Su [2]. Recent Developments - The company experienced a positive market reaction due to Intel's inability to predict a CPU shortage, which has benefited AMD as it had already factored in this shortage [1]. Investment Insights - While AMD is recognized for its potential as an investment, some analysts believe that certain AI stocks may offer greater upside potential and carry less downside risk [2].

Core Insights - Analyst IMS Investment Management Services Ltd. increased its stake in Advanced Micro Devices, Inc. by 85.4% in Q3, owning 19,542 shares valued at $3,162,000 after purchasing an additional 9,000 shares [2] - Other institutional investors have also made significant changes to their positions in AMD, with Norges Bank acquiring a stake valued at approximately $3.09 billion and Vanguard Group Inc. increasing its holdings by 1.5% to a total value of $21.94 billion [3] - Wall Street analysts have a generally positive outlook on AMD, with multiple firms setting price targets around $290.00 to $300.00, and an average rating of "Moderate Buy" with a price target of $277.06 [4] Institutional Holdings - Institutional investors own 71.34% of AMD's stock, indicating strong institutional interest [3] - Rafferty Asset Management LLC increased its holdings by 56.0%, now owning 6,772,923 shares valued at $961.08 million after purchasing an additional 2,430,533 shares [3] Financial Performance - AMD reported Q3 earnings of $1.20 EPS, beating estimates of $1.17 by $0.03, with revenue of $9.25 billion, up 35.6% year-over-year [6] - The company has a market capitalization of $351.02 billion, a PE ratio of 106.74, and a debt-to-equity ratio of 0.04 [5] Stock Performance - AMD's stock opened at $215.61, with a 52-week low of $76.48 and a high of $267.08 [5] - The company has a 50-day simple moving average of $227.90 and a 200-day simple moving average of $187.28 [5] Insider Transactions - EVP Mark D. Papermaster sold 17,108 shares at an average price of $240.12, totaling approximately $4.11 million, representing a 0.99% decrease in ownership [7] - Over the last quarter, insiders sold 181,226 shares worth $39.88 million, with company insiders owning only 0.06% of the stock [8]

Core Viewpoint - Semiconductor stocks are at the forefront of the tech rally, primarily driven by the increasing demand for AI hardware, with investors looking for competitors to Nvidia's dominance in AI acceleration [1] Group 1: AMD's Position in the Market - Advanced Micro Devices (AMD) is emerging as a leading player in the semiconductor sector, particularly in data-center AI chips, gaining attention from Wall Street due to its strong earnings potential [2] - Following AMD's Investor Day, analysts from Citi highlighted the company's optimistic revenue and margin targets, positioning it as the strongest setup in the semiconductor group [2] Group 2: Company Overview - AMD is recognized for its high-performance CPUs and GPUs, expanding its reach from PCs and gaming into servers, data centers, and AI hardware under CEO Dr. Lisa Su's leadership [4] - The company is becoming a serious competitor to Nvidia in AI GPUs, with a growing presence in data center CPUs and networking chips [4] Group 3: Stock Performance and Valuation - AMD's market capitalization is valued at $374 billion, with shares increasing over 73% year-to-date, significantly outperforming the Nasdaq Index, which rose by 15% [5] - Despite a recent pullback of 10% after reaching an all-time high of around $267, AMD's stock remains well above early-year levels [5] - AMD's valuation is high, with a trailing P/E ratio around 100x, compared to a median of 35x for semiconductor peers, indicating high growth expectations but limited room for error if AI spending declines [6]

Core Insights - Advanced Micro Devices (AMD) is positioning itself strongly in the semiconductor industry, particularly in the AI and data center markets, with a projected total addressable market of $1 trillion by 2030, doubling from a previous estimate of $500 billion [1][2] - The company anticipates significant revenue growth in data centers, targeting billions by 2027, and aims for a double-digit market share in AI with an 80% compound annual growth rate (CAGR) over the next three to five years [2][3] - AMD has secured $45 billion in new custom design wins and its Instinct GPUs are now utilized by seven of the top 10 AI companies, enhancing its competitive position against Nvidia [3][4] Stock Performance - AMD's stock has seen a remarkable increase of approximately 13% over the past month, driven by CEO Lisa Su's announcement regarding the expanded total addressable market for AI data centers [5] - Year-to-date, AMD's stock has surged by 104%, significantly outperforming the broader market, and has delivered a 78% gain over the past 52 weeks [6] - The stock is currently trading just 7.5% below its 52-week high of $267.08, reached on October 29 [6]

Group 1 - Advanced Micro Devices, Inc. (AMD) recently held an important analyst meeting where they announced new long-term financial targets that exceeded market expectations, significantly boosting the stock price [1] - The management provided remarkable growth targets for the next three to five years, indicating strong future performance potential [1] - There has been a noticeable shift in Wall Street sentiment regarding AMD stock in recent weeks, raising questions about its continued upward momentum [1] Group 2 - AMD specializes in manufacturing processors, graphics cards, and AI chips for various applications, including computers, servers, and gaming systems [2] - Key products from AMD include the Ryzen processors, Radeon graphics cards, and EPYC server chips, highlighting the company's diverse product portfolio [2]

Group 1 - Advanced Micro Devices, Inc. (AMD) has recently gained attention due to its quantum work and supply constraints affecting its product line, leading to a stock increase of 7.6% to a new high [1] - AMD manufactures semiconductors including CPUs, GPUs, and adaptive chips, with notable brands such as AMD Ryzen, Radeon, EPYC, Instinct, and Versal [1] - CEO Lisa Su is recognized for her strong leadership, emphasizing confidence in AMD's partnerships, particularly with OpenAI, which has placed significant orders for chips [1] Group 2 - While AMD shows potential as an investment, there are AI stocks perceived to have greater upside potential and lower downside risk [1]

Core Insights - BDF-Gestion sold 39,327 shares of Advanced Micro Devices (AMD) in Q3 2025, valued at approximately $6.35 million, as disclosed in an SEC filing on October 9, 2025 [2][6] - Following the sale, AMD now represents 0.63% of BDF-Gestion's 13F Assets Under Management (AUM) [3] - AMD shares were priced at $214.9 as of October 10, 2025, reflecting a 28% increase over the past year, outperforming the S&P 500 by 15.3 percentage points [3] Company Overview - Advanced Micro Devices (AMD) specializes in x86 microprocessors, discrete and integrated GPUs, server and embedded processors, chipsets, and semi-custom System-on-Chip (SoC) products, with notable brands including AMD Ryzen, Radeon, and EPYC [4][5] - The company generates revenue primarily from computing and graphics products for PCs, data centers, and gaming consoles, as well as custom solutions for enterprise and embedded markets [4] Recent Developments - The average price for AMD shares in Q3 was $192, and a strategic partnership with OpenAI announced on October 6, 2025, aimed at deploying six gigawatts of AMD's GPUs, led to a significant increase in AMD's stock price [8][9] - Despite BDF-Gestion's reduction of AMD holdings, the stock has surged by 38% over the last month following the OpenAI partnership announcement [8][9]

Core Insights - Advanced Micro Devices, Inc. (AMD) is a significant player in the semiconductor industry, recognized for its innovative processors and graphics technologies, competing with major companies like Intel and NVIDIA [1] - AMD's stock price has recently surged due to a new partnership with OpenAI, leading to a notable increase in investor optimism [2][3] Stock Performance - On October 6, 2025, Roth Capital analyst Suji Desilva set a new price target for AMD at $250, indicating a potential increase of about 20% from its then-current price of $208.34 [2][6] - Following the announcement of the partnership with OpenAI, AMD's stock price rose to $211.92, reflecting an increase of over 28.69% [3][6] - Currently, AMD's stock is priced at $208.50, showing a significant increase of 26.62% with a change of $43.83, and has fluctuated between a low of $205.74 and a high of $226.71 [4] Historical Context - Historically, AMD has faced resistance at the $186 mark, a peak reached in July and August 2024, which suggests potential challenges in maintaining upward momentum [3][6] - Over the past year, AMD's stock has reached a high of $226.56 and a low of $76.48, with a substantial market capitalization of approximately $338.36 billion [5]

Core Viewpoint - AMD reported a record revenue of nearly $7.685 billion in Q2, maintaining over 30% year-on-year growth, but profit growth turned negative due to U.S. export restrictions on MI308, leading to a 30% decline in EPS and a 10 percentage point drop in gross margin to 43% [1][12][13] Financial Data Summary - Revenue: Q2 revenue was $7.685 billion, up 32% year-on-year, slightly below the Q1 growth of 36% [6][12] - EPS: Non-GAAP diluted EPS for Q2 was $0.48, down 30% year-on-year, compared to a 55% increase in Q1 [6][12] - Profit: Non-GAAP gross margin was 43%, down from 54% in Q1 and 53% a year ago; operating profit decreased by 29% year-on-year [6][12][13] Segment Performance - Data Center: Q2 revenue was $3.2 billion, growing 14% year-on-year, a significant slowdown from Q1's 57% growth [6][14] - Client Segment: Q2 revenue reached $2.5 billion, up 67% year-on-year, marking a third consecutive quarter of record high revenue [7][14] - Gaming: Q2 revenue was $1.1 billion, reversing a 30% decline in Q1 to a 73% increase [8][15] Guidance and Outlook - Q3 Revenue Guidance: Expected revenue is approximately $8.7 billion, with a growth rate slowing to below 30% [10][16] - Gross Margin Guidance: Q3 gross margin is projected to recover to 54% [11][17] - Export Restrictions: Current guidance does not account for any revenue from MI308 exports to China, pending U.S. government approval [18][19] Market Context - AMD's stock price has increased over 40% since the beginning of the year, outperforming competitors like NVIDIA, which saw a 30% increase [3] - Concerns about high valuation pressures on AMD's stock following significant price increases this year [3]