Advanced Micro Devices (NASDAQ:AMD) Shares Up 2.6% on Analyst Upgrade

Key Points

• AMD shares rose 2.6% after Bank of America lifted its price target from $550 to $620 and kept a buy rating on the stock. The move came amid broader analyst optimism around AMD’s AI and server growth prospects.
• Several other Wall Street firms also raised their targets, with the overall analyst consensus still at “Moderate Buy” and an average target price of $467.84. KeyBanc’s $725 target stood out as one of the most bullish calls.
• Recent company results were strong, with AMD reporting Q1 revenue of $10.25 billion and EPS of $1.37, both above estimates. Insider selling was also notable, with executives selling 374,739 shares over the last 90 days.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) rose 2.6% during mid-day trading on Tuesday after Bank of America raised their price target on the stock from $550.00 to $620.00. Bank of America currently has a buy rating on the stock. Advanced Micro Devices traded as high as $574.20 and last traded at $548.13. Approximately 21,070,373 shares traded hands during trading, a decline of 43% from the average daily volume of 36,884,320 shares. The stock had previously closed at $534.39.

AMD has been the topic of several other research reports. DA Davidson boosted their target price on Advanced Micro Devices from $375.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price objective on shares of Advanced Micro Devices from $270.00 to $385.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. KeyCorp boosted their price objective on shares of Advanced Micro Devices from $530.00 to $725.00 and gave the company an "overweight" rating in a research report on Tuesday. Melius Research set a $540.00 target price on shares of Advanced Micro Devices in a research note on Monday, May 18th. Finally, Royal Bank Of Canada raised 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. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Advanced Micro Devices currently has an average rating of "Moderate Buy" and an average target price of $467.84.

Insider Buying and Selling

In related news, 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 completion of the sale, the executive vice president owned 105,222 shares in the company, valued at $46,759,604.58. This trade represents a 18.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the business'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 completion of the sale, the executive vice president directly 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 ownership of the stock. 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. Insiders have sold a total of 374,739 shares of company stock worth $161,135,671 over the last ninety days. Corporate insiders own 0.50% of the company's stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Bank of America said AMD is better positioned than peers Intel and Arm in the near term because it is benefiting from a server boom, while PC and smartphone demand remains weak for other CPU makers. Intel, ARM face near-term pain while AMD rides server boom: BofA
• Positive Sentiment: Multiple Wall Street firms raised AMD price targets, including KeyBanc and Bank of America, reinforcing expectations for strong AI accelerator and server CPU growth ahead of earnings. AMD Stock Soars on Updated Analyst Coverage Including a New Street-High Price Target
• Positive Sentiment: Investor sentiment also improved after reports that Chinese companies may be able to buy more advanced AI chips, which could expand the addressable market for AMD’s AI products. Nvidia and AMD Stocks Rise on a Positive Shift in China’s AI Chips Scenario
• Positive Sentiment: AMD’s strong first-quarter results and its upcoming August 4 earnings report are keeping the market focused on a potential beat-and-raise story, with data center revenue already showing rapid growth. AMD climbs as fresh analyst target hikes boost AI optimism
• Neutral Sentiment: Broader semiconductor sentiment has been volatile, with some recent articles pointing to macro-driven profit-taking and supply-chain concerns even as the AI trade remains intact. AMD Stock Drops 5: Why Global Supply Chain Fears and Tech Profit-Taking Are Hurting Chip Giants

Institutional Trading of Advanced Micro Devices

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

Advanced Micro Devices Trading Up 2.6%

The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The stock's 50 day moving average is $495.20 and its two-hundred day moving average is $321.90. The company has a market capitalization of $893.78 billion, a PE ratio of 179.72, a price-to-earnings-growth ratio of 1.64 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted 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 for the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter last year, the firm posted $0.96 EPS. The company's revenue for the quarter was up 37.8% on a year-over-year basis. As a group, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.18 EPS for the current fiscal year.

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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