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

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price traded up 3.4% during trading 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. 17,699,192 shares were traded during mid-day trading, a decline of 45% from the average session volume of 31,995,373 shares. The stock had previously closed at $534.74.

Other equities analysts have also issued research reports about the stock. UBS Group reiterated an “overweight” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Cantor Fitzgerald restated an “overweight” rating on shares of Advanced Micro Devices in a research note on Monday, October 5th. TD Cowen reaffirmed a “buy” rating on shares of Advanced Micro Devices in a research report on Monday. Morgan Stanley boosted their target price on Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 5th. Finally, DA Davidson upped their price target on Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $606.76.

Insiders Place Their Bets

In other Advanced Micro Devices news, SVP Ava Hahn sold 2,993 shares of Advanced Micro Devices 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 transaction, the senior vice president directly owned 26,623 shares of the company’s stock, valued at $13,010,393.87. The trade was a 10.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the completion of the sale, the executive vice president directly owned 160,979 shares of the company’s stock, valued at $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. 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 a total of 231,100 shares of company stock worth $114,867,400 in the last three months. 0.50% of the stock is owned by corporate insiders.

Key Headlines Impacting Advanced Micro Devices

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Southpoint Capital Advisors LP lifted its holdings in shares of Advanced Micro Devices by 50.0% in the first quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock worth $183,087,000 after buying an additional 300,000 shares in the last quarter. Boomfish Wealth Group LLC bought a new position in shares of Advanced Micro Devices in the first quarter valued at approximately $1,193,000. Dimensional Fund Advisors LP grew its stake in Advanced Micro Devices by 6.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock valued at $1,045,954,000 after acquiring an additional 291,165 shares in the last quarter. Ferguson Wellman Capital Management Inc. grew its stake in Advanced Micro Devices by 6,968.7% during the third quarter. Ferguson Wellman Capital Management Inc. now owns 140,313 shares of the semiconductor manufacturer’s stock valued at $85,995,000 after acquiring an additional 138,328 shares in the last quarter. Finally, Douglas Lane & Associates LLC grew its stake in Advanced Micro Devices by 2,748.0% during the third quarter. Douglas Lane & Associates LLC now owns 85,952 shares of the semiconductor manufacturer’s stock valued at $52,582,000 after acquiring an additional 82,934 shares in the last quarter. Institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock Up 3.4%

The stock’s fifty day moving average is $539.60 and its two-hundred day moving average is $478.81. 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 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 posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The firm’s revenue was up 50.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.48 earnings per share. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

About Advanced Micro Devices

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.