Advanced Micro Devices (NASDAQ:AMD) Given New $650.00 Price Target at Piper Sandler

Key Points

• Piper Sandler raised its AMD price target to $650 from $600 and maintained an “overweight” rating, implying about 34% upside from the share price cited in the report.
• AMD beat third-quarter earnings and revenue estimates: EPS was $2.09 versus $1.95 expected, while revenue rose 44.7% year over year to $13.38 billion.
• Analyst sentiment is broadly positive, with a MarketBeat consensus “Moderate Buy” rating and an average price target of $618.62; the article also notes risks including high valuation and pressure on free cash flow.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its target price raised by stock analysts at Piper Sandler from $600.00 to $650.00 in a research note issued on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the semiconductor manufacturer's stock. Piper Sandler's price target would indicate a potential upside of 33.92% from the stock's current price.

Several other brokerages have also weighed in on AMD. Zacks Research cut shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 1st. Citigroup upped their target price on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the stock a "buy" rating in a report on Tuesday, October 6th. Morgan Stanley raised their price target on shares of Advanced Micro Devices from $465.00 to $510.00 and gave the company an "equal weight" rating in a research report on Monday. Susquehanna raised their target price on Advanced Micro Devices from $620.00 to $650.00 and gave the company a "positive" rating in a report on Wednesday, October 28th. Finally, DA Davidson upped their target price on shares of Advanced Micro Devices from $550.00 to $600.00 and gave the stock a "buy" rating in a research note on Wednesday. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices presently has an average rating of "Moderate Buy" and an average price target of $618.62.

Advanced Micro Devices Trading Up 0.3%

Shares of NASDAQ:AMD traded up $1.47 during mid-day trading on Wednesday, reaching $485.37. 33,579,294 shares of the company's stock were exchanged, compared to its average volume of 31,704,236. The business's fifty day moving average price is $548.70 and its 200-day moving average price is $411.73. Advanced Micro Devices has a twelve month low of $188.22 and a twelve month high of $658.52. The firm has a market capitalization of $792.36 billion, a price-to-earnings ratio of 125.27, a PEG ratio of 4.79 and a beta of 2.49. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.95 by $0.14. The company had revenue of $13.38 billion during the quarter, compared to the consensus estimate of $13.10 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. During the same period last year, the company earned $1.20 earnings per share. The firm's revenue was up 44.7% compared to the same quarter last year. On average, research analysts predict that Advanced Micro Devices will post 6.50 EPS for the current fiscal year.

Insider Activity at Advanced Micro Devices

In related news, SVP Ava Hahn sold 2,993 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the sale, the senior vice president owned 26,623 shares of the company's stock, valued at approximately $13,010,393.87. The trade was a 10.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the transaction, the executive vice president directly owned 160,979 shares of the company's stock, valued at approximately $76,316,924.32. This trade represents a 8.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 231,100 shares of company stock worth $114,867,400 over the last 90 days. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. DecisionPoint Financial LLC boosted its holdings in shares of Advanced Micro Devices by 79.2% in the third quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. purchased a new position in Advanced Micro Devices during the 3rd quarter valued at about $29,000. JNBA Financial Advisors lifted its holdings in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after buying an additional 30 shares in the last quarter. Graney & King LLC bought a new position in shares of Advanced Micro Devices in the first quarter valued at approximately $31,000. Finally, Main Street Group LTD purchased a new position in Advanced Micro Devices during the first quarter valued at approximately $33,000. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD beat third-quarter earnings and revenue estimates, with revenue up about 45% year over year. Data Center revenue nearly doubled, rising 97% to $8.55 billion, on strong demand for Instinct GPUs and EPYC processors. Reuters article
• Positive Sentiment: The outlook was a key catalyst: AMD forecast fourth-quarter revenue of about $17 billion, above expectations, and CEO Lisa Su pointed to more than 80% revenue growth in 2027, with AI Data Center revenue expected to more than double. The forecast has helped ease concerns about the durability of AI-chip spending. Zacks article
• Positive Sentiment: Several analysts reiterated bullish ratings or raised price targets after results, including Wedbush and DA Davidson at $600 and Cantor Fitzgerald and Rosenblatt at $700, reinforcing expectations for further AI-related growth. Benzinga article
• Neutral Sentiment: AMD’s strong results initially lifted shares after hours, but the stock has since been largely flat to slightly weaker as investors assess whether its ambitious growth targets can be delivered. TipRanks article
• Negative Sentiment: Bearish considerations include tight high-bandwidth-memory supply and substantial investment needs: reports flagged inventory buildup and weaker free cash flow relative to revenue. AMD’s lofty valuation also leaves less room for execution or growth to disappoint. Article on AMD cash flow

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD's product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.

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