Advanced Micro Devices, Inc. (NASDAQ:AMD) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• AMD now has a consensus analyst rating of “Moderate Buy” from 44 covering firms, with the average 1-year price target around $430.68. Several firms recently lifted targets, including Wedbush, Stifel, and Susquehanna, reflecting broadly bullish sentiment.
• Recent company news remains positive for AMD’s AI strategy: Bernstein raised its target to $600 on strong AI infrastructure demand, and AMD signed an agreement with Rackspace to deploy 30 MW of AMD-based AI compute across data centers. AMD’s acquisition of MEXT is also being viewed as a move to help address AI data-center memory bottlenecks.
• AMD’s latest earnings topped expectations, with $1.37 EPS versus $1.29 expected and revenue of $10.25 billion versus $9.90 billion estimated, up 37.8% year over year. However, the stock has also drawn valuation concerns after a strong rally, and insiders have sold shares in recent months.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the forty-four ratings firms that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell recommendation, twelve have issued a hold recommendation, thirty have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $430.6757.

A number of brokerages have recently weighed in on AMD. Wedbush lifted their target price on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the company an "outperform" rating in a research note on Monday, May 4th. Stifel Nicolaus lifted their price target on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Seaport Research Partners raised shares of Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price target for the company in a research report on Wednesday, May 6th. Royal Bank Of Canada lifted their price target on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the company a "sector perform" rating in a research report on Wednesday, May 6th. Finally, Susquehanna lifted their price target on shares of Advanced Micro Devices from $375.00 to $450.00 and gave the company a "positive" rating in a research report on Wednesday, May 6th.

Key Advanced Micro Devices News

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

• Positive Sentiment: Bernstein raised its price target on AMD to $600, citing strong AI infrastructure demand and improving server-market conditions, reinforcing the bullish case for the stock. Why Is AMD Stock Gaining Thursday?
• Positive Sentiment: AMD and Rackspace signed a definitive agreement to deploy 30 MW of AMD-based AI compute across Rackspace’s data centers, a win that could expand AMD’s presence in regulated enterprise cloud workloads. Rackspace’s AI Land Grab: Plugging Into the Next Compute Boom (AMD)
• Positive Sentiment: AMD’s acquisition of MEXT is being viewed as strategically important because it could help address AI data-center memory bottlenecks and strengthen the company’s AI stack. AMD (AMD) Buys MEXT To Tackle AI Data Center Memory Bottlenecks
• Neutral Sentiment: Several analyst and investor articles continue to highlight AMD’s strong year-to-date rally, but also warn that the stock is trading near all-time highs and may be fully valued, which could temper upside near term. Buy, Hold, or Sell: AMD Rested Near All-Time Highs as Kevin Warsh Opened His First Fed Meeting. Is AMD Stock a Buy at $507?
• Neutral Sentiment: Market commentary from today also points to AMD as a preferred semiconductor alternative versus Intel, but the note is more about sector positioning than a direct company-specific catalyst. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.
• Negative Sentiment: Some recent coverage warns AMD has likely risen too far, too fast, which could invite profit-taking if investors become more cautious about valuation. One Warning Signal AMD Investors Can't Miss

Advanced Micro Devices Trading Up 0.4%

Shares of AMD opened at $539.33 on Friday. The firm's 50-day moving average price is $417.16 and its 200-day moving average price is $285.22. The firm has a market capitalization of $879.43 billion, a price-to-earnings ratio of 176.83, a PEG ratio of 1.57 and a beta of 2.50. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. Advanced Micro Devices has a 1-year low of $126.82 and a 1-year high of $558.37.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company's revenue for the quarter was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.96 EPS. Sell-side analysts anticipate that Advanced Micro Devices will post 6.15 EPS for the current year.

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of Advanced Micro Devices stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the completion of the transaction, the chief executive officer directly owned 2,896,899 shares of the company's stock, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of Advanced Micro Devices stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the transaction, the executive vice president directly owned 105,222 shares of the company's stock, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 378,032 shares of company stock worth $161,876,596 over the last 90 days. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of AMD. Joseph Group Capital Management purchased a new position in Advanced Micro Devices in the fourth quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new position in Advanced Micro Devices in the fourth quarter worth about $27,000. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices in the fourth quarter worth about $27,000. Basepoint Wealth LLC purchased a new position in Advanced Micro Devices in the fourth quarter worth about $30,000. Finally, Graney & King LLC purchased a new position in Advanced Micro Devices in the first quarter worth about $31,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

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.

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