Advanced Micro Devices (NASDAQ:AMD) Earns "Outperform" Rating from Wedbush

Key Points

• Wedbush reaffirmed an “Outperform” rating on AMD and set a $600 price target, implying approximately 21.36% upside; analysts overall rate the stock a “Moderate Buy” with a consensus target of $535.97.
• AMD reported quarterly revenue of $11.54 billion and adjusted EPS of $1.66, exceeding estimates, while revenue increased 50.1% year over year. Data-center revenue more than doubled to roughly $6.7 billion, driven by demand for EPYC processors and Instinct AI GPUs.
• Management projected third-quarter revenue of $12.7 billion to $13.3 billion, above consensus, reinforcing expectations for continued growth in server CPUs and AI infrastructure.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report)'s stock had its "outperform" rating reissued by analysts at Wedbush in a note issued to investors on Wednesday,Benzinga reports. They presently have a $600.00 price target on the semiconductor manufacturer's stock. Wedbush's price objective would suggest a potential upside of 21.36% from the company's current price.

A number of other equities analysts have also recently commented on the company. Northland Securities reaffirmed a "market perform" rating and issued a $260.00 price target on shares of Advanced Micro Devices in a research note on Monday, April 27th. Robert W. Baird set a $1,250.00 price objective on Advanced Micro Devices in a research note on Friday, July 24th. UBS Group restated an "overweight" rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Truist Financial set a $594.00 target price on shares of Advanced Micro Devices in a research note on Wednesday. Finally, Mizuho upped their price target on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the company an "outperform" rating in a report on Monday, July 27th. Three investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $535.97.

Advanced Micro Devices Stock Performance

NASDAQ AMD opened at $494.40 on Wednesday. The company has a 50-day simple moving average of $516.06 and a two-hundred day simple moving average of $354.63. Advanced Micro Devices has a 12-month low of $149.22 and a 12-month high of $584.73. The firm has a market cap of $806.17 billion, a price-to-earnings ratio of 162.10 and a beta of 2.48. 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 - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the business earned $0.48 earnings per share. The company's quarterly revenue was up 50.1% on a year-over-year basis. On average, equities analysts forecast that Advanced Micro Devices will post 6.27 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Lisa T. Su sold 125,000 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the sale, the chief executive officer 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of Advanced Micro Devices stock in a transaction on Monday, June 15th. The shares were sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the sale, the executive vice president owned 1,233,687 shares in the company, valued at approximately $661,663,348.71. This trade represents a 0.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 310,310 shares of company stock worth $141,185,456. Insiders own 0.50% of the company's stock.

Institutional Trading of Advanced Micro Devices

Several large investors have recently bought and sold shares of the company. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices during the fourth quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new position in Advanced Micro Devices in the fourth quarter worth $27,000. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices during the fourth quarter valued at $27,000. Basepoint Wealth LLC purchased a new position in Advanced Micro Devices during the fourth quarter valued at $30,000. Finally, Graney & King LLC bought a new stake in shares of Advanced Micro Devices during the 1st quarter valued at $31,000. 71.34% of the stock is owned by institutional investors.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD reported second-quarter revenue of $11.54 billion, up 50.1% year over year, and adjusted EPS of $1.66, exceeding Wall Street estimates. Data-center revenue more than doubled to approximately $6.7 billion, highlighting strong demand for EPYC processors and Instinct AI GPUs. AMD forecasts upbeat revenue on AI data-center demand
• Positive Sentiment: Third-quarter revenue guidance of $12.7 billion to $13.3 billion was above the roughly $12.4 billion consensus forecast. Management also described unexpected server CPU demand, a stronger 2027 outlook and a potential $2 trillion long-term AI infrastructure opportunity. AMD server CPU supply and demand outlook
• Positive Sentiment: Analyst Christopher Rolland maintained a Buy rating and raised his price target to $550, citing accelerating data-center and AI GPU growth. AMD also said Meta, OpenAI and Anthropic are optimizing AI models for its platform, potentially strengthening the ROCm software ecosystem. Analyst raises AMD price target

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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