Advanced Micro Devices (NASDAQ:AMD) Stock Jumps 1.3% – Here’s Why

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 1.3% on Tuesday. The stock traded as high as $539.25 and last traded at $515.21. 46,770,275 shares were traded during trading, an increase of 45% from the average daily volume of 32,186,650 shares. The stock had previously closed at $508.58.

More Advanced Micro Devices News

Here’s some of the latest news about AMD:

• Positive Sentiment: Analyst upgrades and a higher target: William Blair upgraded AMD to Outperform, while Bank of America raised its price target to $700 from $650 and maintained a Buy rating, citing the Zen 6 roadmap and growth prospects. AMD Stock Upgraded as AI Chip Rival Nvidia Spirals Bank of America rating and price target
• Positive Sentiment: Quantum-computing partnership: AMD plans to invest in PsiQuantum and expand work on infrastructure for fault-tolerant quantum computers. The opportunity is longer term, but it adds a new strategic avenue beyond conventional AI chips. AMD to invest in PsiQuantum
• Negative Sentiment: Premium valuation: AMD’s elevated earnings multiple leaves less room for disappointment if growth or product adoption falls short of expectations. AMD valuation and growth outlook

Analyst Ratings Changes

Several research analysts have commented on AMD shares. Royal Bank Of Canada reissued a “sector perform” rating and issued a $540.00 price objective on shares of Advanced Micro Devices in a research report on Thursday. Sanford C. Bernstein downgraded shares of Advanced Micro Devices from an “outperform” rating to a “market perform” rating in a research report on Thursday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $700.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Truist Financial upped their price objective on shares of Advanced Micro Devices from $594.00 to $605.00 and gave the stock a “buy” rating in a report on Wednesday, November 4th. Finally, Susquehanna upped their price objective on Advanced Micro Devices from $620.00 to $650.00 and gave the company a “positive” rating in a report on Wednesday, October 28th. Three investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Advanced Micro Devices has an average rating of “Moderate Buy” and an average target price of $640.11.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.10, a current ratio of 2.72 and a quick ratio of 1.93. The stock has a market capitalization of $959.94 billion, a P/E ratio of 127.24, a PEG ratio of 4.96 and a beta of 2.49. The stock’s fifty day moving average is $550.43 and its 200-day moving average is $419.05.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.95 by $0.14. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. The company had revenue of $13.38 billion during the quarter, compared to analysts’ expectations of $13.10 billion. During the same period in the prior year, the company earned $1.20 earnings per share. The business’s quarterly revenue was up 44.7% compared to the same quarter last year. On average, equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.93 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the completion of the sale, the senior vice president owned 26,623 shares in the company, valued at approximately $13,010,393.87. The trade was a 10.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the transaction, the executive vice president directly owned 1,261,461 shares of the company’s stock, 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. In the last ninety days, insiders have sold 230,957 shares of company stock valued at $114,799,511. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Bank of America Corp DE bought a new stake in shares of Advanced Micro Devices in the second quarter valued at about $7,022,226,000. BlackRock Inc. lifted its holdings in shares of Advanced Micro Devices by 3.1% during the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. Jupiter Topco LLC acquired a new stake in shares of Advanced Micro Devices in the second quarter valued at about $2,084,651,000. Wellington Management Group LLP lifted its position 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 worth $5,422,444,000 after purchasing an additional 2,365,419 shares during the period. Finally, State Street Corp grew its holdings in 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 worth $46,606,266,000 after acquiring an additional 2,149,563 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

About Advanced Micro Devices

Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors. The company’s product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.