Advanced Micro Devices, Inc. (NASDAQ:AMD) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) have been given an average recommendation of “Moderate Buy” by the forty-three brokerages that are covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, twelve have given a hold recommendation, twenty-eight have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $440.4054.

A number of brokerages recently commented on AMD. UBS Group upped their price target on shares of Advanced Micro Devices from $455.00 to $670.00 and gave the company a “buy” rating in a research note on Wednesday. Zacks Research cut shares of Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 3rd. Mizuho upped their price target on shares of Advanced Micro Devices from $515.00 to $615.00 and gave the company an “outperform” rating in a research note on Monday, June 1st. Northland Securities reaffirmed a “market perform” rating and set a $260.00 target price on shares of Advanced Micro Devices in a report on Monday, April 27th. Finally, Jefferies Financial Group lowered shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a report on Wednesday, May 6th.

Insider Transactions at Advanced Micro Devices

In related news, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the transaction, the executive vice president owned 324,527 shares of the company’s stock, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the sale, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This trade represents a 18.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 378,032 shares of company stock worth $161,876,596. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of large investors have recently added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd grew its holdings in Advanced Micro Devices by 12.8% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer’s stock worth $43,000 after acquiring an additional 24 shares during the last quarter. CLG LLC grew its stake in shares of Advanced Micro Devices by 3.1% in the first quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer’s stock worth $205,000 after acquiring an additional 30 shares during the period. Columbia Bank grew its stake in shares of Advanced Micro Devices by 0.7% in the first quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer’s stock worth $1,055,000 after acquiring an additional 34 shares during the period. Evolution Wealth Management Inc. grew its stake in shares of Advanced Micro Devices by 11.0% in the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer’s stock worth $72,000 after acquiring an additional 35 shares during the period. Finally, Focused Wealth Management Inc grew its stake in shares of Advanced Micro Devices by 2.7% in the first quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer’s stock worth $291,000 after acquiring an additional 37 shares during the period. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock Performance

Shares of AMD stock opened at $521.58 on Friday. The stock has a market capitalization of $850.49 billion, a P/E ratio of 171.01, a PEG ratio of 1.54 and a beta of 2.50. The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The firm’s 50 day moving average is $445.21 and its 200 day moving average is $296.11. Advanced Micro Devices has a 12 month low of $133.50 and a 12 month high of $562.99.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating analysts’ consensus estimates of $1.29 by $0.08. The company had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. Advanced Micro Devices’s revenue was up 37.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.96 EPS. On average, sell-side analysts anticipate that Advanced Micro Devices will post 6.15 earnings per share for the current year.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Wall Street sentiment remains upbeat, with multiple analysts raising AMD price targets in June, including a street-high call from UBS, as firms increasingly view AMD as a bigger player in AI infrastructure and data center CPUs.
• Positive Sentiment: AMD continues to gain credibility in enterprise AI, including recognition from Gartner as a leading server CPU company, which supports the long-term growth case for its data center business. Article Title
• Positive Sentiment: New business wins are also helping sentiment, including a definitive agreement with Rackspace Technology to deploy AMD-based infrastructure, reinforcing demand for AMD chips in cloud and enterprise workloads. Article Title
• Positive Sentiment: Several recent articles argue AMD still has meaningful upside as investors focus on its CPU and AI data center growth, with some bullish commentary suggesting the market may still be underappreciating its long-term earnings power.
• Neutral Sentiment: One recent piece highlighted both the positives and a caution on AMD, noting the stock’s huge six-month run and suggesting investors should stay aware of valuation risk after such a strong rally.
• Negative Sentiment: The semiconductor group has also been under pressure today, with AI chip names, including AMD, softening as momentum in the sector cools and investors rotate out of the space. Article Title
• Negative Sentiment: Bearish/neutral valuation commentary has also picked up, with some coverage questioning whether AMD’s rapid stock gains have already priced in a lot of future growth, which can weigh on the shares in the short term.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.