Bank of America Issues Positive Forecast for Advanced Micro Devices (NASDAQ:AMD) Stock Price

Key Points

• Bank of America has raised its price target for Advanced Micro Devices (AMD) from $175 to $200, indicating a potential upside of 15.17% from the stock's previous close, while maintaining a "buy" rating.
• Multiple analysts have positive ratings on AMD, including Melius Research upgrading it to "strong-buy" and raising their target price to $175, reflecting strong confidence in the semiconductor company's performance.
• AMD recently reported better-than-expected quarterly earnings, with revenues of $7.44 billion and earnings per share of $0.96, outperforming analyst estimates and showing a 35.9% increase in revenue year-over-year.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price target raised by research analysts at Bank of America from $175.00 to $200.00 in a research note issued on Tuesday,Briefing.com Automated Import reports. The brokerage currently has a "buy" rating on the semiconductor manufacturer's stock. Bank of America's price objective would indicate a potential upside of 15.17% from the stock's previous close.

Several other equities analysts also recently weighed in on AMD. Melius Research upgraded shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating and raised their target price for the company from $110.00 to $175.00 in a report on Monday, June 23rd. DZ Bank upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $118.00 target price for the company in a report on Thursday, May 8th. Citigroup raised their price target on shares of Advanced Micro Devices from $145.00 to $165.00 and gave the stock a "neutral" rating in a research note on Friday, July 18th. Rosenblatt Securities reaffirmed a "buy" rating and set a $200.00 price target on shares of Advanced Micro Devices in a research note on Friday, June 13th. Finally, Stifel Nicolaus reaffirmed a "buy" rating and set a $132.00 price target on shares of Advanced Micro Devices in a research note on Friday, June 13th. Eleven equities research analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and five have issued a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $157.42.

Advanced Micro Devices Trading Up 4.3%

Shares of Advanced Micro Devices stock opened at $173.66 on Tuesday. The company has a fifty day simple moving average of $133.42 and a 200-day simple moving average of $114.81. Advanced Micro Devices has a 12-month low of $76.48 and a 12-month high of $174.70. The company has a current ratio of 2.80, a quick ratio of 1.97 and a debt-to-equity ratio of 0.06. The stock has a market cap of $281.57 billion, a price-to-earnings ratio of 127.69, a PEG ratio of 2.20 and a beta of 2.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share for the quarter, topping analysts' consensus estimates of $0.93 by $0.03. The firm had revenue of $7.44 billion during the quarter, compared to analysts' expectations of $7.10 billion. Advanced Micro Devices had a net margin of 8.03% and a return on equity of 8.30%. Advanced Micro Devices's quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.62 EPS. On average, equities analysts forecast that Advanced Micro Devices will post 3.87 EPS for the current fiscal year.

Advanced Micro Devices declared that its board has approved a stock repurchase program on Wednesday, May 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to buy up to 3.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its shares are undervalued.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,998 shares of the company's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the completion of the transaction, the executive vice president owned 1,713,710 shares in the company, valued at approximately $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently bought and sold shares of AMD. Kingstone Capital Partners Texas LLC acquired a new stake in Advanced Micro Devices in the 2nd quarter valued at about $958,422,000. Goldman Sachs Group Inc. lifted its holdings in Advanced Micro Devices by 169.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock valued at $1,012,538,000 after acquiring an additional 6,200,850 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in Advanced Micro Devices by 131.5% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock valued at $1,069,846,000 after acquiring an additional 5,915,185 shares during the last quarter. Toronto Dominion Bank lifted its holdings in Advanced Micro Devices by 443.3% in the 4th quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock valued at $660,475,000 after acquiring an additional 4,461,609 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in Advanced Micro Devices in the 1st quarter valued at about $436,746,000. Institutional investors own 71.34% of the company's stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.

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