Advanced Micro Devices (NASDAQ:AMD) Stock Lifted to "Buy" by Wall Street Zen

Key Points

• Wall Street Zen upgraded AMD from “hold” to “buy,” while broader analyst coverage remains favorable with a consensus “Moderate Buy” rating and an average price target of $567.62.
• AMD reported quarterly EPS of $1.66 versus the $1.62 estimate and revenue of $11.54 billion, up 50.1% year over year. Shares opened at $633.91, near the company’s 12-month high, with a market capitalization of about $1.03 trillion.
• Institutional ownership remains high at 71.34%, but insiders have sold 213,838 shares worth approximately $105.5 million over the past three months, including sales by senior executives under disclosed arrangements.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Sunday, Wall Street Zen reports.

A number of other brokerages also recently issued reports on AMD. Barclays downgraded shares of Advanced Micro Devices from an "overweight" rating to an "underweight" rating in a report on Friday, June 12th. Jefferies Financial Group set a $650.00 price objective on Advanced Micro Devices in a report on Wednesday, August 5th. Truist Financial increased their price objective on Advanced Micro Devices from $478.00 to $594.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. increased their price objective on Advanced Micro Devices from $385.00 to $550.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Finally, Cantor Fitzgerald reissued an "overweight" rating and set a $700.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $567.62.

Advanced Micro Devices Trading Up 3.0%

Shares of AMD stock opened at $633.91 on Friday. The company's 50-day moving average price is $512.65 and its 200-day moving average price is $444.36. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The stock has a market cap of $1.03 trillion, a price-to-earnings ratio of 162.96, a PEG ratio of 6.58 and a beta of 2.45. Advanced Micro Devices has a twelve month low of $163.14 and a twelve month high of $645.46.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. During the same period last year, the business earned $0.48 earnings per share. Advanced Micro Devices's revenue was up 50.1% compared to the same quarter last year. As a group, equities analysts predict that Advanced Micro Devices will post 6.43 earnings per share for the current year.

Insider Activity

In related news, EVP Paul Grasby sold 15,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the completion of the transaction, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. This trade represents a 11.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Mark D. Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the transaction, the executive vice president directly owned 1,261,461 shares of the company's stock, valued at approximately $595,245,602.07. This represents a 2.23% 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 213,838 shares of company stock worth $105,533,836 in the last three months. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. grew its stake in shares of Advanced Micro Devices by 3.1% during the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares in the last quarter. State Street Corp raised its stake in Advanced Micro Devices by 2.9% in the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer's stock valued at $46,606,266,000 after buying an additional 2,149,563 shares in the last quarter. Bank of America Corp DE purchased a new stake in Advanced Micro Devices during the 2nd quarter worth about $7,022,226,000. Jennison Associates LLC lifted its holdings in Advanced Micro Devices by 5.8% during the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer's stock worth $5,793,388,000 after buying an additional 545,575 shares during the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of Advanced Micro Devices by 33.9% during the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer's stock worth $5,422,444,000 after acquiring an additional 2,365,419 shares in the last quarter. Institutional investors and hedge funds own 71.34% of the company's stock.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s proposed $8.2 billion, all-stock acquisition of World Labs is the main company-specific catalyst. The deal would bring in Fei-Fei Li’s spatial-intelligence AI business and could help AMD shape future AI products beyond the current GPU competition. The acquisition is intended to strengthen AMD’s software and AI roadmap as demand expands. Advanced Micro Devices Is Spending $8.2 Billion to Learn What AI Needs Next
• Positive Sentiment: Demand indicators remain strong. Hewlett Packard Enterprise announced a $1.2 billion Vultr order involving AMD Helios AI racks, offering evidence of expanding deployment opportunities for AMD chips in data centers. HPE CFO discusses $1.2B deal with Vultr to deploy AMD Helios AI racks
• Positive Sentiment: Semiconductor stocks broadly advanced, with AMD benefiting from renewed enthusiasm for the next AI infrastructure build-out. Analysts and financial commentators continue to highlight AMD’s data-center growth, CPU demand and potential to gain share without overtaking Nvidia. AMD Doesn’t Need to Beat Nvidia to Be a Big AI Winner
• Positive Sentiment: Weaker-than-expected employment data reduced expectations for another Federal Reserve rate hike, supporting technology and other high-growth stocks whose valuations are sensitive to interest rates. AMD stock gains 3%, here’s why

Advanced Micro Devices Company Profile

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

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

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