Advanced Micro Devices (NASDAQ:AMD) Shares Climb 3.4% Following Analyst Upgrade

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 3.4% on Wednesday after Susquehanna raised their price target on the stock from $550.00 to $620.00. Susquehanna currently has a positive rating on the stock. Advanced Micro Devices traded as high as $556.79 and last traded at $552.72. Approximately 17,699,192 shares changed hands during trading, a decline of 45% from the average daily volume of 31,995,373 shares. The stock had previously closed at $534.74.

A number of other brokerages have also recently issued reports on AMD. Robert W. Baird set a $1,250.00 target price on Advanced Micro Devices in a report on Friday, July 24th. TD Cowen reissued a “buy” rating on shares of Advanced Micro Devices in a research note on Monday. Wall Street Zen raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Sunday, October 4th. Wells Fargo & Company boosted their price target on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. Finally, Jefferies Financial Group set a $650.00 price objective on Advanced Micro Devices in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and an average price target of $606.76.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 70,000 shares of the company’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the sale, the chief executive officer owned 3,032,156 shares in the company, valued at approximately $1,536,696,660.80. The trade was a 2.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 231,100 shares of company stock worth $114,867,400 over the last 90 days. Company insiders own 0.50% of the company’s stock.

Key Advanced Micro Devices News

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Higher analyst price target: Susquehanna raised its AMD price target from $550 to $620 and maintained a positive rating, implying additional upside from recently quoted levels. Wedbush also reaffirmed an outperform rating with a $600 target.
• Positive Sentiment: New AI infrastructure deployment: Cloud provider Vultr plans to deploy AMD Instinct MI355X GPUs in a 20-megawatt supercluster in Chennai, India. The project would be India’s largest AMD Instinct deployment and strengthens AMD’s position in enterprise and sovereign AI infrastructure. Vultr and AMD Expand Global Collaboration
• Positive Sentiment: Robust AI spending outlook: Reports that Anthropic has committed more than $600 billion to computing support the view that demand for data-center processors and accelerators could remain strong. AMD may benefit as customers seek alternatives to Nvidia. Anthropic Computing Commitments
• Positive Sentiment: Sector-wide tailwind: AMD gained alongside Nvidia, Intel and other technology shares after stronger updates from Super Micro Computer and SpaceX eased near-term concerns about AI infrastructure spending. AMD was also among the largest contributors to gains in the QQQ and VOO ETFs.
• Neutral Sentiment: Insider selling: EVP Forrest Norrod sold 17,262 shares worth approximately $9.3 million under a pre-arranged Rule 10b5-1 plan. He retained a substantial position, limiting the significance of the transaction as a signal about AMD’s outlook.
• Negative Sentiment: Valuation and earnings risk: AMD has rallied sharply this year and trades at an elevated valuation ahead of its expected November 3 earnings report. Articles warn that the stock may be priced for strong execution, leaving it vulnerable to margin pressure, slower data-center spending or disappointing guidance. AMD Valuation Ahead of Earnings

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE acquired a new stake in Advanced Micro Devices during the 2nd quarter worth about $7,022,226,000. BlackRock Inc. raised its position in shares of Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after acquiring an additional 4,535,126 shares in the last quarter. Jupiter Topco LLC acquired a new position in shares of Advanced Micro Devices in the 2nd quarter valued at about $2,084,651,000. Wellington Management Group LLP lifted its stake in shares of Advanced Micro Devices by 33.9% in the 2nd quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer’s stock valued at $5,422,444,000 after purchasing an additional 2,365,419 shares during the period. Finally, State Street Corp boosted its position in shares of Advanced Micro Devices by 2.9% during the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after purchasing an additional 2,149,563 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Trading Up 3.4%

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The firm has a 50-day moving average of $539.60 and a 200 day moving average of $478.81. The company has a market cap of $902.30 billion, a P/E ratio of 142.09, a price-to-earnings-growth ratio of 5.52 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The company’s revenue was up 50.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.48 earnings per share. On average, analysts predict that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current fiscal year.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.