Advanced Micro Devices, Inc. (NASDAQ:AMD) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) have been assigned an average recommendation of “Moderate Buy” from the forty-four research firms that are presently covering the firm, Marketbeat.com reports. Twelve investment analysts have rated the stock with a hold recommendation, thirty have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price target among analysts that have covered the stock in the last year is $410.00.

A number of equities research analysts have recently issued reports on AMD shares. Royal Bank Of Canada upped their target price on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the stock a “sector perform” rating in a report on Wednesday, May 6th. Stifel Nicolaus upped their price objective on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. upped their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Wolfe Research assumed coverage on shares of Advanced Micro Devices in a report on Wednesday, May 6th. They issued a “peer perform” rating for the company. Finally, Weiss Ratings raised shares of Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, May 6th.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD is being viewed as a major AI beneficiary, with articles highlighting rising demand for its Instinct GPUs, EPYC CPUs, and rack-scale AI infrastructure products. OneQode to Deploy AMD Instinct GPUs and Plans for AMD Helios Rack-Scale Solution for Global AI Infrastructure
• Positive Sentiment: Wall Street appears to be raising its long-term expectations for AMD, with fresh commentary about a possible path to a $1 trillion market cap and higher price targets from analysts. What Will It Take for AMD’s Market Cap to Hit $1 Trillion?
• Positive Sentiment: Sector-wide strength is also helping AMD, as investors rotate into AI chip stocks beyond Nvidia and bid up semiconductor names broadly. Why Qualcomm, AMD, Intel, other AI stocks are surging sharply on Tuesday
• Neutral Sentiment: Some commentary is more cautionary, noting that momentum in AMD and other chip stocks could eventually face valuation pressure after a strong run. Intel, AMD, and Other Momentum Stocks Look Unstoppable. Look Again.
• Negative Sentiment: There is also competitive concern in the background, with one article arguing Nvidia could pressure AMD in CPUs and related AI markets, which could temper upside if competition intensifies. Nvidia Vs. AMD: Nvidia Will Eat AMD’s CPU Lunch

Insider Activity

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at $140,000,947.80. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the company’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the completion of the transaction, the chief executive officer directly owned 3,021,899 shares in the company, valued at $1,346,286,223.49. The trade was a 3.97% decrease in their position. 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 three months, insiders sold 329,085 shares of company stock worth $114,051,007. Company insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $27,000. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $30,000. Finally, Graney & King LLC acquired a new stake in shares of Advanced Micro Devices during the first quarter worth about $31,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Advanced Micro Devices Price Performance

Advanced Micro Devices stock opened at $503.89 on Wednesday. Advanced Micro Devices has a 52-week low of $108.62 and a 52-week high of $506.96. The firm has a market capitalization of $821.64 billion, a price-to-earnings ratio of 165.21, a PEG ratio of 1.37 and a beta of 2.40. The company has a fifty day simple moving average of $309.03 and a 200-day simple moving average of $250.05. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same quarter in the prior year, the firm earned $0.96 earnings per share. The company’s revenue for the quarter was up 37.8% compared to the same quarter last year. On average, equities analysts anticipate that Advanced Micro Devices will post 6.2 EPS for the current fiscal year.

Advanced Micro Devices Company Profile

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.