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

Key Points

• Wall Street sentiment on AMD is upbeat, with 44 analysts giving the stock a consensus rating of “Moderate Buy.” The average 12-month price target among covered brokers is $410.
• Several analysts recently lifted their price targets, including Wells Fargo to $505 and TD Cowen to $500, reflecting growing optimism around the company’s outlook.
• AMD posted strong quarterly results, beating EPS and revenue estimates with $1.37 per share and $10.25 billion in revenue, while revenue rose 37.8% year over year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) has been given a consensus rating of "Moderate Buy" by the forty-four research firms that are covering the stock, Marketbeat.com reports. Twelve equities research analysts have rated the stock with a hold rating, thirty have assigned a buy rating and two have issued a strong buy rating on the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $410.00.

AMD has been the subject of several research analyst reports. Wells Fargo & Company increased their target price on Advanced Micro Devices from $345.00 to $505.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. TD Cowen upped their target price on shares of Advanced Micro Devices from $290.00 to $500.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Northland Securities reiterated a "market perform" rating and set a $260.00 price objective on shares of Advanced Micro Devices in a research report on Monday, April 27th. Citigroup increased their price objective on shares of Advanced Micro Devices from $358.00 to $460.00 and gave the company a "neutral" rating in a research report on Monday, May 18th. Finally, Truist Financial set a $478.00 target price on shares of Advanced Micro Devices in a report on Wednesday, May 6th.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the transaction, the executive vice president owned 324,527 shares of the company's stock, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a document filed 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 the firm's 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 in the company, valued at $46,759,604.58. This trade represents a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 329,085 shares of company stock worth $114,051,007. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently bought and sold shares of AMD. Norges Bank acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at $4,929,312,000. Jennison Associates LLC boosted its holdings in Advanced Micro Devices by 181.6% during the fourth quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer's stock worth $2,336,552,000 after buying an additional 7,035,991 shares in the last quarter. Cardano Risk Management B.V. purchased a new stake in Advanced Micro Devices during the fourth quarter worth $1,000,783,000. Wellington Management Group LLP increased its holdings 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 acquiring an additional 3,735,807 shares in the last quarter. Finally, Franklin Resources Inc. increased its holdings in Advanced Micro Devices by 340.1% in the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer's stock worth $1,016,796,000 after acquiring an additional 3,669,054 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Advanced Micro Devices Stock Up 7.8%

Shares of AMD stock opened at $503.89 on Wednesday. Advanced Micro Devices has a 12 month low of $108.62 and a 12 month high of $506.96. The stock has a market cap of $821.64 billion, a P/E ratio of 165.21, a P/E/G ratio of 1.37 and a beta of 2.40. 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 company has a 50 day simple moving average of $309.03 and a two-hundred day simple moving average of $250.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating 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 analysts' expectations of $9.90 billion. During the same period in the prior year, the company earned $0.96 earnings per share. The firm's revenue was up 37.8% on a year-over-year basis. On average, research analysts expect that Advanced Micro Devices will post 6.2 earnings per share for the current year.

More Advanced Micro Devices News

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

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.

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