Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 8.1% on Analyst Upgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 8.1% on Tuesday after Citigroup upgraded the stock from a market perform rating to a buy rating. The company traded as high as $548.14 and last traded at $544.43. Approximately 27,758,728 shares changed hands during trading, a decline of 24% from the average session volume of 36,535,055 shares. The stock had previously closed at $503.57.

A number of other analysts have also weighed in on the stock. William Blair initiated coverage on shares of Advanced Micro Devices in a research note on Thursday, July 9th. They issued a “market perform” rating for the company. Zacks Research lowered shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 3rd. DA Davidson boosted their target price on Advanced Micro Devices from $375.00 to $425.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Evercore restated an “outperform” rating and issued a $579.00 target price on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. Finally, Loop Capital raised Advanced Micro Devices to a “strong-buy” rating in a research note on Tuesday, June 16th. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $468.65.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares in the company, valued at approximately $1,334,572,400.31. The trade was a 4.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the company’s stock in a transaction on 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 completion of the transaction, the executive vice president directly owned 324,527 shares in the company, valued at $140,000,947.80. This represents a 5.66% 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. Over the last three months, insiders sold 341,630 shares of company stock worth $152,147,456. Company insiders own 0.50% of the company’s stock.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Anthropic’s multi-year plan to deploy up to 2GW of AMD Instinct MI450 GPUs could become a major new revenue stream for AMD. AMD and Anthropic Sign Major Chips-and-Investment Deal
• Positive Sentiment: AMD’s planned investment in Anthropic signals a deeper strategic alliance and could help the company win more AI infrastructure customers. AMD to invest up to $5 billion in Anthropic, WSJ Reports
• Positive Sentiment: Analysts are becoming more confident that the Anthropic deal can improve AMD’s long-term revenue outlook and help narrow the gap with Nvidia. AMD Stock Rises as Wells Fargo Gains ‘Further Confidence’ in Revenue after Anthropic Deal
• Neutral Sentiment: AMD also remains in focus ahead of its Aug. 4 earnings report and upcoming AI event, keeping expectations elevated for more customer wins and product updates.

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new stake in shares of Advanced Micro Devices during the fourth quarter valued at approximately $4,929,312,000. Jennison Associates LLC boosted its stake in Advanced Micro Devices by 181.6% in the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer’s stock worth $2,336,552,000 after purchasing an additional 7,035,991 shares during the period. Cardano Risk Management B.V. acquired a new position in Advanced Micro Devices in the 4th quarter worth approximately $1,000,783,000. Wellington Management Group LLP boosted its stake in Advanced Micro Devices by 335.9% in the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock worth $784,330,000 after purchasing an additional 3,735,807 shares during the period. Finally, Franklin Resources Inc. grew its position in Advanced Micro Devices by 340.1% during the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock worth $1,016,796,000 after purchasing an additional 3,669,054 shares in the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Stock Performance

The firm’s 50-day simple moving average is $508.85 and its two-hundred day simple moving average is $337.19. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $900.63 billion, a PE ratio of 181.09, a PEG ratio of 1.58 and a beta of 2.47.

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, beating 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 company 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 company earned $0.96 earnings per share. The company’s revenue for the quarter was up 37.8% on a year-over-year basis. On average, equities research analysts expect that Advanced Micro Devices, Inc. will post 6.25 earnings per share 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.