Advanced Micro Devices (NASDAQ:AMD) Stock Price Expected to Rise, Bank of America Analyst Says

Key Points

• Bank of America raised its AMD price target to $700 from $650 and maintained a Buy rating, implying about 20.8% upside from the share price cited in the article.
• Analyst views are broadly positive but not unanimous: MarketBeat reports a Moderate Buy consensus and an average target of $640.11, while Piper Sandler downgraded the stock to Neutral.
• AMD beat quarterly earnings and revenue estimates, with EPS of $2.09 and revenue of $13.38 billion; revenue rose 44.7% year over year.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price objective hoisted by research analysts at Bank of America from $650.00 to $700.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor manufacturer's stock. Bank of America's price objective indicates a potential upside of 20.82% from the stock's current price.

Several other brokerages have also recently issued reports on AMD. UBS Group dropped their price objective on shares of Advanced Micro Devices from $730.00 to $700.00 and set a "buy" rating on the stock in a research note on Wednesday, November 4th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $700.00 target price on shares of Advanced Micro Devices in a report on Wednesday, November 4th. Piper Sandler downgraded shares of Advanced Micro Devices from an "overweight" rating to a "neutral" rating in a report on Thursday. BMO Capital Markets started coverage on shares of Advanced Micro Devices in a research note on Thursday, August 20th. They set an "outperform" rating and a $550.00 price target on the stock. Finally, Mizuho cut their price target on shares of Advanced Micro Devices from $705.00 to $610.00 and set an "outperform" rating for the company in a report on Wednesday, November 4th. Three investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $640.11.

Advanced Micro Devices Stock Performance

Shares of AMD stock traded up $26.47 during midday trading on Thursday, hitting $579.37. The company had a trading volume of 39,604,534 shares, compared to its average volume of 32,292,781. The company's 50 day simple moving average is $550.43 and its 200 day simple moving average is $419.05. Advanced Micro Devices has a 52-week low of $188.22 and a 52-week high of $658.52. The stock has a market cap of $950.21 billion, a price-to-earnings ratio of 126.57, a PEG ratio of 4.96 and a beta of 2.49. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.72 and a quick ratio of 1.93.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, topping the consensus estimate of $1.95 by $0.14. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The business had revenue of $13.38 billion during the quarter, compared to analysts' expectations of $13.10 billion. During the same quarter in the prior year, the business earned $1.20 earnings per share. The company's quarterly revenue was up 44.7% compared to the same quarter last year. Research analysts anticipate that Advanced Micro Devices will post 6.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Forrest Norrod sold 17,262 shares of the firm's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $540.70, for a total value of $9,333,563.40. Following the completion of the sale, the executive vice president owned 353,317 shares in the company, valued at $191,038,501.90. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the business's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the sale, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 230,957 shares of company stock worth $114,799,511. Insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds and other institutional investors have recently modified their holdings of AMD. Southpoint Capital Advisors LP lifted its stake in shares of Advanced Micro Devices by 50.0% in the first quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer's stock worth $183,087,000 after acquiring an additional 300,000 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Advanced Micro Devices by 6.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer's stock valued at $1,045,954,000 after purchasing an additional 291,165 shares in the last quarter. Ferguson Wellman Capital Management Inc. raised its position in shares of Advanced Micro Devices by 6,968.7% in the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 140,313 shares of the semiconductor manufacturer's stock valued at $85,995,000 after purchasing an additional 138,328 shares in the last quarter. Douglas Lane & Associates LLC raised its position in shares of Advanced Micro Devices by 2,748.0% in the 3rd quarter. Douglas Lane & Associates LLC now owns 85,952 shares of the semiconductor manufacturer's stock valued at $52,582,000 after purchasing an additional 82,934 shares in the last quarter. Finally, Nan Shan Life Insurance Co. Ltd. boosted its stake in shares of Advanced Micro Devices by 1,288.6% during the 2nd quarter. Nan Shan Life Insurance Co. Ltd. now owns 220,170 shares of the semiconductor manufacturer's stock valued at $127,899,000 after buying an additional 204,315 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

More Advanced Micro Devices News

These are some of the AMD news items that stood out recently:

• Positive Sentiment: AMD introduced a new GPU aimed at data-center customers, strengthening its pitch in the fast-growing AI accelerator market. AMD Stock Soars over 5% After Introducing a New AI Data Center GPU
• Positive Sentiment: Reports of uncertainty around Nvidia CEO Jensen Huang have prompted investors to rotate toward AMD and other rivals, on expectations they could gain share. AMD also received an upgrade from William Blair to Outperform. AMD, Broadcom stocks jump as Nvidia CEO Jensen Huang resigns
• Positive Sentiment: Recent reports point to strong AI infrastructure spending and substantial growth in AMD’s data-center business, supporting expectations for demand for its CPUs and accelerators. Great News for Nvidia, Micron, Broadcom, and AMD Stock Investors

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors. The company's product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.

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