Advanced Micro Devices, Inc., also known as AMD, is a semiconductor company operating in the global market. The company was incorporated in 1969 and is one of the oldest semiconductor manufacturers on the market today. Headquartered in Santa Clara, California, Advanced Micro Devices is fundamental to most verticals within the global economy.
Advanced Micro Devices operates in two segments; Computing And Graphics and Enterprise, Embedded, and Semi-Custom. Advanced Micro Devices products span a range of semiconductor applications including microprocessors, chipsets, GPUs, data centers, system-on-a-chip, development services, and technology for gaming consoles which gives it some of the broadest exposure of any semiconductor company today.
Advanced Micro Devices markets its high-performance products under a host of brands that include AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, AMD PRO A-Series, AMD Radeon graphics, and AMD Embedded Radeon graphics brands and there are pro-models available in all categories.
The company serves OEMs across all verticals, cloud service providers, independent distributors, online retailers, and add-in-board manufacturers through a network of direct sales, independent distributors, and sales representatives that have offices in all major markets.
Advanced Micro Devices is run by a team of industry-leading innovators who believe in the concepts of high-performance and adaptive computing. Adaptive Computing is a technology that can learn and alter its functioning and adapt to meet the needs of its users. The push toward adaptive computing is being led by Dr. Lisa Su who joined the team in 2012 as a Senior Vice President and is now Chairman of the Board and CEO. Before joining Advance Micro Devices Dr. Su spent 18 years working in various positions at two other very high-profile semiconductor companies that are still in operation today.
The factor that makes AMD stand out from the crowd is its twin focus on high-performance computing and high-performance graphics. This focus gives AMD an edge over the competition because it is the best at combining the two aspects into custom solutions that are driving innovations and advancements in other industries and fields of research. The latest innovation, and one hailed as the biggest advance in CPU cache technology in over a decade, is the creation of the AMD EPYC processors which include AMDs 3-D V-Cache technology. The V-Cache technology alters the way data is stored in the cache and is resulting in up to 66% improvement in performance.
If quality, performance, leadership, and innovation aren’t enough to sway an investor Advanced Micro Devices is also a leader in the push toward sustainable and green operations. The company is on track to meet the four pillars of its plan which are 1) a 50% reduction in greenhouse gas emissions by 2030 2) reach a 30X increase in efficiency for many of its processors 3) 100% of suppliers must have public GHG goals and 4) 80% of suppliers sourcing renewable energy by 2025.
Analyst Upgrades and Downgrades
Several equities research analysts recently weighed in on the stock. Citigroup reduced their target price on shares of Advanced Micro Devices from $110.00 to $96.00 and set a "neutral" rating for the company in a research note on Wednesday, August 3rd. Cowen lowered their price objective on Advanced Micro Devices from $160.00 to $120.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 12th. Susquehanna Bancshares decreased their price target on shares of Advanced Micro Devices from $140.00 to $120.00 and set a "positive" rating on the stock in a research note on Wednesday, July 13th. StockNews.com cut shares of Advanced Micro Devices from a "hold" rating to a "sell" rating in a research note on Thursday, August 4th. Finally, KGI Securities upgraded shares of Advanced Micro Devices from a "neutral" rating to an "outperform" rating and set a $125.00 target price on the stock in a research report on Wednesday, August 3rd. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, Advanced Micro Devices has a consensus rating of "Moderate Buy" and a consensus target price of $125.93.
Advanced Micro Devices Stock Performance
NASDAQ:AMD traded down $4.49 on Friday, hitting $95.95. 67,020,906 shares of the stock were exchanged, compared to its average volume of 100,522,344. Advanced Micro Devices has a 52 week low of $71.60 and a 52 week high of $164.46. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.44 and a quick ratio of 1.96. The company has a market capitalization of $154.89 billion, a PE ratio of 40.32, a P/E/G ratio of 0.90 and a beta of 1.96. The business's fifty day moving average is $87.75 and its 200 day moving average is $99.29.
Advanced Micro Devices (NASDAQ:AMD - Get Rating) last announced its earnings results on Tuesday, August 2nd. The semiconductor manufacturer reported $1.05 EPS for the quarter, topping the consensus estimate of $1.03 by $0.02. Advanced Micro Devices had a net margin of 14.51% and a return on equity of 15.17%. During the same quarter in the prior year, the business posted $0.58 earnings per share. Research analysts anticipate that Advanced Micro Devices will post 3.9 EPS for the current fiscal year.
Insider Transactions at Advanced Micro Devices
In other news, CFO Devinder Kumar sold 20,000 shares of the firm's stock in a transaction dated Tuesday, May 31st. The stock was sold at an average price of $102.44, for a total transaction of $2,048,800.00. Following the completion of the transaction, the chief financial officer now directly owns 504,370 shares in the company, valued at $51,667,662.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, CEO Lisa T. Su sold 125,000 shares of the company's stock in a transaction that occurred on Thursday, August 18th. The shares were sold at an average price of $100.02, for a total transaction of $12,502,500.00. Following the sale, the chief executive officer now directly owns 2,926,985 shares in the company, valued at approximately $292,757,039.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Devinder Kumar sold 20,000 shares of the firm's stock in a transaction dated Tuesday, May 31st. The shares were sold at an average price of $102.44, for a total value of $2,048,800.00. Following the completion of the sale, the chief financial officer now directly owns 504,370 shares in the company, valued at approximately $51,667,662.80. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 178,518 shares of company stock valued at $17,150,243. 1.00% of the stock is currently owned by insiders.
