Advanced Micro Devices (NASDAQ:AMD) Stock Rating Reaffirmed as "Sector Perform" by Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its “Sector Perform” rating on AMD and set a $540 price target, implying 3.2% downside from the prior close.
• Analyst sentiment overall is more positive: AMD has a consensus “Moderate Buy” rating and an average price target of $638.72, with 35 analysts rating it Buy or Strong Buy.
• AMD’s latest quarterly results beat estimates, reporting $2.09 EPS and $13.38 billion in revenue; revenue increased 44.7% year over year.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report)'s stock had its "sector perform" rating reiterated by investment analysts at Royal Bank Of Canada in a report issued on Thursday, Benzinga reports. They presently have a $540.00 target price on the semiconductor manufacturer's stock. Royal Bank Of Canada's price target indicates a potential downside of 3.20% from the company's previous close.

A number of other analysts have also recently commented on the stock. Citigroup upped their price target on shares of Advanced Micro Devices from $575.00 to $800.00 and gave the company a "buy" rating in a research report on Tuesday, October 6th. Stifel Nicolaus lifted their price objective on Advanced Micro Devices from $700.00 to $725.00 and gave the stock a "buy" rating in a research report on Wednesday, November 4th. Wells Fargo & Company dropped their price objective on Advanced Micro Devices from $700.00 to $650.00 and set an "overweight" rating on the stock in a research note on Wednesday, November 4th. Susquehanna upped their target price on Advanced Micro Devices from $620.00 to $650.00 and gave the company a "positive" rating in a research report on Wednesday, October 28th. Finally, William Blair raised Advanced Micro Devices from a "market perform" rating to an "outperform" rating in a research note on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $638.72.

Advanced Micro Devices Trading Up 0.9%

NASDAQ:AMD traded up $4.98 on Thursday, reaching $557.88. 15,496,796 shares of the stock traded hands, compared to its average volume of 32,148,477. The company has a current ratio of 2.72, a quick ratio of 1.93 and a debt-to-equity ratio of 0.10. Advanced Micro Devices has a 1-year low of $188.22 and a 1-year high of $658.52. The company's 50 day moving average is $550.43 and its 200-day moving average is $419.05. The firm has a market capitalization of $914.97 billion, a price-to-earnings ratio of 121.77, a price-to-earnings-growth ratio of 4.96 and a beta of 2.49.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results 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. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. The firm had revenue of $13.38 billion for the quarter, compared to the consensus estimate of $13.10 billion. During the same quarter in the previous year, the company earned $1.20 EPS. The company's revenue for the quarter was up 44.7% on a year-over-year basis. Equities research analysts anticipate that Advanced Micro Devices will post 6.93 EPS for the current fiscal year.

Insider Activity

In other news, EVP Jean X. Hu sold 15,000 shares of Advanced Micro Devices stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the transaction, the executive vice president directly owned 160,979 shares in the company, valued at $76,316,924.32. This trade represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 transaction of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares of the company's stock, valued at $595,245,602.07. This represents a 2.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 230,957 shares of company stock valued at $114,799,511. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently made changes to their positions in AMD. Ilmarinen Mutual Pension Insurance Co boosted its stake in Advanced Micro Devices by 0.8% in the third quarter. Ilmarinen Mutual Pension Insurance Co now owns 219,533 shares of the semiconductor manufacturer's stock valued at $134,302,000 after acquiring an additional 1,756 shares during the last quarter. Intesa Sanpaolo Wealth Management increased its stake in shares of Advanced Micro Devices by 7.9% in the third quarter. Intesa Sanpaolo Wealth Management now owns 2,267 shares of the semiconductor manufacturer's stock worth $1,387,000 after purchasing an additional 166 shares in the last quarter. Cornerstone Select Advisors LLC raised its position in shares of Advanced Micro Devices by 1.4% in the third quarter. Cornerstone Select Advisors LLC now owns 4,148 shares of the semiconductor manufacturer's stock valued at $2,538,000 after purchasing an additional 57 shares during the period. E Fund Management Hong Kong Co. Ltd. raised its position in shares of Advanced Micro Devices by 56.0% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 20,695 shares of the semiconductor manufacturer's stock valued at $12,660,000 after purchasing an additional 7,433 shares during the period. Finally, Sumitomo Life Insurance Co. raised its position in shares of Advanced Micro Devices by 93.9% in the third quarter. Sumitomo Life Insurance Co. now owns 36,454 shares of the semiconductor manufacturer's stock valued at $22,301,000 after purchasing an additional 17,650 shares during the period. Institutional investors and hedge funds own 71.34% of the company's stock.

Key Stories Impacting Advanced Micro Devices

Investors following AMD have been watching these stories:

• Positive Sentiment: Nvidia uncertainty is directing investor attention to AMD. Reports that Nvidia’s board may consider a leadership change have weighed on its shares and helped drive buying in AMD and other competitors, as investors assess whether they could gain business. The benefit to AMD depends on customers actually shifting suppliers, not just investors moving between stocks. Article: AMD and Broadcom Stocks Gain as Investors Rotate Away From Nvidia
• Positive Sentiment: AMD is expanding its quantum-computing relationship with PsiQuantum and plans to invest in the company. The partnership aims to advance utility-scale quantum infrastructure, with drug discovery among the early applications. This offers longer-term potential but is not an immediate earnings driver. Article: AMD to Invest in PsiQuantum to Advance Quantum Computing Infrastructure
• Neutral Sentiment: Investors are also weighing recent product and customer momentum: AMD’s EPYC processors have drawn cloud-provider interest, including Google’s use of fifth-generation EPYC chips, while new server CPUs are being introduced for AI workloads. These developments support the growth case, but the provided reports do not quantify their revenue impact. Article: What Is Going on With AMD Stock on Wednesday?

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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