Advanced Micro Devices (NASDAQ:AMD) Trading 9.9% Higher - Here's Why

Key Points

• AMD shares jumped 9.9% on Monday, with the move driven largely by upbeat analyst sentiment and a broader rally in semiconductor stocks. Goldman Sachs reportedly raised its 12-month outlook for AMD, helping fuel the advance.
• Several analysts turned more constructive on AMD, including price target increases from KeyCorp and TD Cowen. Overall, the stock carries a consensus rating of Moderate Buy with an average target price of $453.92.
• AMD’s fundamentals and growth story remain strong, with the company recently beating earnings and revenue estimates and benefiting from optimism around AI, server CPUs, and new self-driving-related opportunities.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 9.9% during trading on Monday . The company traded as high as $559.11 and last traded at $569.1030. Approximately 5,164,377 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 37,297,457 shares. The stock had previously closed at $517.82.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Goldman Sachs lifted its 12-month outlook for AMD, reinforcing the view that the stock may have more upside despite its recent rally. Article: Why Advanced Micro Devices Stock Just Bounced Back
• Positive Sentiment: Another analyst update from Goldman Sachs helped AMD join a broader Monday morning move higher in semiconductor names, adding momentum to the stock. Article: Monday's Morning Movers: AMD & ASML PT Hikes, DDOG Downgrade
• Positive Sentiment: New reporting highlighted AMD’s expanding AI opportunity, including a Turing self-driving deal that uses AMD AI accelerators and investment support from AMD Ventures, which supports the company’s long-term growth narrative. Article: AMD (AMD) Expands Into Self Driving With Turing Deal And Venture Backing
• Positive Sentiment: Commentary around rising earnings and revenue estimates, plus continued enthusiasm for AMD’s AI and server-CPU demand, is keeping sentiment constructive. Article: How Advanced Micro Devices, Inc.’s (AMD) Server CPU Demand Is Broadening Its AI Growth Story

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Seaport Research Partners upgraded shares of Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price objective on the stock in a research note on Wednesday, May 6th. KeyCorp boosted their target price on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Oppenheimer downgraded shares of Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a report on Wednesday, May 6th. TD Cowen increased their price target on shares of Advanced Micro Devices from $500.00 to $600.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Finally, HSBC cut shares of Advanced Micro Devices from a "buy" rating to a "hold" rating and lifted their price objective for the company from $335.00 to $340.00 in a research note on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $453.92.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The stock has a market cap of $926.38 billion, a P/E ratio of 185.81, a PEG ratio of 1.53 and a beta of 2.47. The stock has a 50-day simple moving average of $470.75 and a 200-day simple moving average of $308.01.

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, topping 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 firm had revenue of $10.25 billion during the quarter, compared to analysts' expectations of $9.90 billion. During the same quarter in the prior year, the business earned $0.96 earnings per share. The business's revenue for the quarter was up 37.8% compared to the same quarter last year. Research analysts forecast that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current year.

Insider Buying and Selling 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 that occurred on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the sale, the executive vice president owned 324,527 shares in the company, valued at $140,000,947.80. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the business's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the sale, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. The trade was a 18.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 374,739 shares of company stock worth $161,135,671 over the last 90 days. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently modified their holdings of AMD. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices during the fourth quarter worth about $25,000. Sarver Vrooman Wealth Advisors bought a new position in Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC bought a new position in Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Basepoint Wealth LLC acquired a new stake in Advanced Micro Devices during the 4th quarter worth approximately $30,000. Finally, Graney & King LLC acquired a new stake in Advanced Micro Devices during the 1st quarter worth approximately $31,000. Institutional investors and hedge funds own 71.34% of the company's stock.

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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