Erste Group Bank Downgrades Advanced Micro Devices (NASDAQ:AMD) to Hold

Key Points

• Erste Group Bank has downgraded Advanced Micro Devices from a "buy" rating to a "hold" rating, signaling a shift in analyst sentiment towards the stock.
• Despite the downgrade, analysts from Citigroup and UBS have raised their price targets for AMD, reflecting mixed opinions on the stock's future performance.
• AMD reported earnings that missed consensus estimates but showed strong revenue growth year-over-year, indicating continuing demand for its semiconductor products.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was downgraded by analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a research note issued on Thursday,Finviz reports.

Other research analysts also recently issued reports about the company. Citigroup raised their price objective on Advanced Micro Devices from $145.00 to $165.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. UBS Group raised their target price on Advanced Micro Devices from $150.00 to $210.00 and gave the company a "buy" rating in a report on Monday, July 28th. Wedbush reaffirmed a "cautious" rating on shares of Advanced Micro Devices in a report on Saturday, August 9th. Mizuho raised their target price on Advanced Micro Devices from $183.00 to $205.00 and gave the company an "outperform" rating in a report on Thursday, August 14th. Finally, Melius raised Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 target price on the stock in a report on Monday, June 23rd. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $180.88.

Advanced Micro Devices Stock Performance

AMD stock opened at $159.54 on Thursday. The company has a current ratio of 2.49, a quick ratio of 1.81 and a debt-to-equity ratio of 0.05. The firm has a market cap of $258.91 billion, a P/E ratio of 91.69, a P/E/G ratio of 1.84 and a beta of 1.92. Advanced Micro Devices has a 12-month low of $76.48 and a 12-month high of $186.65. The stock's 50 day simple moving average is $162.37 and its 200 day simple moving average is $126.42.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.06). Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%.The company had revenue of $7.69 billion during the quarter, compared to analyst estimates of $7.41 billion. During the same period in the prior year, the business earned $0.69 earnings per share. Advanced Micro Devices's quarterly revenue was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, equities research analysts predict that Advanced Micro Devices will post 3.87 EPS for the current year.

Advanced Micro Devices announced that its Board of Directors has approved a share repurchase program on Wednesday, May 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to repurchase up to 3.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total value of $2,790,229.94. Following the sale, the executive vice president owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the completion of the transaction, the executive vice president directly owned 125,505 shares in the company, valued at approximately $21,738,721.05. The trade was a 7.38% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 252,998 shares of company stock worth $41,415,580 over the last 90 days. Company insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Advisory LLC boosted its holdings in Advanced Micro Devices by 1.4% in the 2nd quarter. Cornerstone Advisory LLC now owns 4,271 shares of the semiconductor manufacturer's stock worth $606,000 after buying an additional 57 shares during the period. King Wealth Management Group grew its stake in Advanced Micro Devices by 2.1% in the 2nd quarter. King Wealth Management Group now owns 3,017 shares of the semiconductor manufacturer's stock worth $428,000 after acquiring an additional 62 shares in the last quarter. Synergy Financial Group LTD boosted its stake in shares of Advanced Micro Devices by 2.0% during the second quarter. Synergy Financial Group LTD now owns 3,309 shares of the semiconductor manufacturer's stock valued at $470,000 after purchasing an additional 64 shares in the last quarter. Tortoise Investment Management LLC boosted its stake in Advanced Micro Devices by 14.8% in the second quarter. Tortoise Investment Management LLC now owns 503 shares of the semiconductor manufacturer's stock valued at $71,000 after acquiring an additional 65 shares in the last quarter. Finally, Tritonpoint Wealth LLC boosted its stake in Advanced Micro Devices by 2.6% in the second quarter. Tritonpoint Wealth LLC now owns 2,857 shares of the semiconductor manufacturer's stock valued at $405,000 after acquiring an additional 72 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Company Profile

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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