Advanced Micro Devices (NASDAQ:AMD) Shares Up 3.2% After Analyst Upgrade

Key Points

• Advanced Micro Devices (NASDAQ:AMD) shares increased by 3.2% following an upgrade by Bank of America, which raised its price target from $250 to $300.
• A total of 71.34% of AMD's stock is owned by institutional investors, with significant stakes bought recently by Norges Bank and Goldman Sachs Group Inc.
• AMD's most recent earnings report showed a 31.7% year-over-year revenue increase despite missing EPS estimates, with reported earnings of $0.48 compared to the expected $0.54.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price rose 3.2% during mid-day trading on Monday after Bank of America raised their price target on the stock from $250.00 to $300.00. Bank of America currently has a buy rating on the stock. Advanced Micro Devices traded as high as $242.88 and last traded at $240.56. Approximately 56,477,019 shares traded hands during trading, an increase of 14% from the average daily volume of 49,647,840 shares. The stock had previously closed at $233.08.

A number of other brokerages have also recently issued reports on AMD. Morgan Stanley boosted their target price on Advanced Micro Devices from $168.00 to $246.00 and gave the stock an "equal weight" rating in a report on Tuesday, October 7th. Truist Financial reiterated a "buy" rating and set a $273.00 target price (up previously from $213.00) on shares of Advanced Micro Devices in a report on Tuesday, October 7th. Hsbc Global Res upgraded Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. Dbs Bank upgraded Advanced Micro Devices from a "hold" rating to a "moderate buy" rating in a report on Monday, October 6th. Finally, JPMorgan Chase & Co. upped their price target on Advanced Micro Devices from $120.00 to $180.00 and gave the stock a "neutral" rating in a report on Wednesday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $233.94.

Insider Buying and Selling

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,868 shares of the company's stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $226.01, for a total value of $648,196.68. Following the transaction, the senior vice president directly owned 9,033 shares of the company's stock, valued at $2,041,548.33. This represents a 24.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Mark D. Papermaster sold 16,800 shares of the company's stock in a transaction that occurred on Wednesday, October 15th. The shares were sold at an average price of $224.28, for a total value of $3,767,904.00. Following the completion of the transaction, the executive vice president directly owned 1,714,505 shares in the company, valued at approximately $384,529,181.40. The trade was a 0.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 274,118 shares of company stock worth $46,180,719 over the last 90 days. 0.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank acquired a new stake in Advanced Micro Devices in the second quarter worth $3,094,662,000. Kingstone Capital Partners Texas LLC bought a new position in Advanced Micro Devices during the second quarter valued at about $958,422,000. Goldman Sachs Group Inc. boosted its stake in Advanced Micro Devices by 169.7% during the first quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock valued at $1,012,538,000 after buying an additional 6,200,850 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its stake in Advanced Micro Devices by 131.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock valued at $1,069,846,000 after buying an additional 5,915,185 shares in the last quarter. Finally, Nuveen LLC bought a new position in Advanced Micro Devices during the first quarter valued at about $436,746,000. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Price Performance

The company has a 50 day moving average of $175.96 and a two-hundred day moving average of $142.07. The firm has a market cap of $390.39 billion, a P/E ratio of 138.25, a PEG ratio of 2.32 and a beta of 1.90. The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.06). The company had revenue of $7.69 billion during the quarter, compared to analysts' expectations of $7.41 billion. Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%.The company's revenue for the quarter was up 31.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.69 EPS. Advanced Micro Devices has set its Q3 2025 guidance at EPS. Sell-side analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.

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