Rosenblatt Securities Reaffirms Buy Rating for Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices (NASDAQ:AMD)‘s stock had its “buy” rating reaffirmed by research analysts at Rosenblatt Securities in a note issued to investors on Tuesday, Benzinga reports. They currently have a $700.00 price target on the semiconductor manufacturer’s stock. Rosenblatt Securities’ target price would indicate a potential upside of 10.43% from the company’s current price.

Several other equities analysts have also commented on AMD. Morgan Stanley raised their target price on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a report on Wednesday, August 5th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $540.00 target price on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of Advanced Micro Devices in a report on Monday, August 3rd. Stifel Nicolaus raised their target price on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a “buy” rating in a report on Friday, July 10th. Finally, Barclays lowered shares of Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a report on Friday, June 12th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Advanced Micro Devices currently has a consensus rating of “Moderate Buy” and an average target price of $567.63.

Advanced Micro Devices Stock Performance

Advanced Micro Devices stock traded up $18.18 during midday trading on Tuesday, hitting $633.91. The company’s stock had a trading volume of 19,310,608 shares, compared to its average volume of 32,866,156. Advanced Micro Devices has a 1-year low of $163.14 and a 1-year high of $645.46. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The company has a 50-day moving average price of $510.41 and a two-hundred day moving average price of $443.02. The company has a market cap of $1.03 trillion, a price-to-earnings ratio of 162.96, a PEG ratio of 6.35 and a beta of 2.45.

Advanced Micro Devices (NASDAQ:AMD) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same period last year, the firm earned $0.48 EPS. The business’s quarterly revenue was up 50.1% compared to the same quarter last year. As a group, sell-side analysts predict that Advanced Micro Devices will post 6.43 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 25,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the sale, the chief executive officer directly owned 74,211 shares of the company’s stock, valued at approximately $37,609,392.69. The trade was a 25.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available 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 Advanced Micro Devices stock in a transaction that occurred 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 sale, the executive vice president directly owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 213,838 shares of company stock worth $105,533,836 in the last ninety days. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several hedge funds have recently added to or reduced their stakes in the business. Private Client Services LLC boosted its position in Advanced Micro Devices by 1.7% during the 3rd quarter. Private Client Services LLC now owns 1,079 shares of the semiconductor manufacturer’s stock worth $660,000 after buying an additional 18 shares during the period. Global Wealth Strategies & Associates boosted its position in Advanced Micro Devices by 95.5% during the 3rd quarter. Global Wealth Strategies & Associates now owns 1,118 shares of the semiconductor manufacturer’s stock worth $684,000 after buying an additional 546 shares during the period. Versant Capital Management Inc boosted its position in Advanced Micro Devices by 2.8% during the 3rd quarter. Versant Capital Management Inc now owns 6,622 shares of the semiconductor manufacturer’s stock worth $4,109,000 after buying an additional 182 shares during the period. Noble Wealth Management PBC boosted its position in Advanced Micro Devices by 5.0% during the 3rd quarter. Noble Wealth Management PBC now owns 465 shares of the semiconductor manufacturer’s stock worth $285,000 after buying an additional 22 shares during the period. Finally, Burkett Financial Services LLC acquired a new stake in Advanced Micro Devices during the 3rd quarter worth approximately $117,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Key Advanced Micro Devices News

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

• Positive Sentiment: $8.2 billion World Labs acquisition: AMD plans to acquire Fei-Fei Li’s spatial-intelligence AI startup in an all-stock transaction. Management expects the technology to help guide future chip development and expand AMD’s opportunity beyond the current GPU race. AMD bets on AI demand by buying World Labs
• Positive Sentiment: Evidence of accelerating AI demand: Hewlett Packard Enterprise secured a $1.2 billion Vultr order involving AMD Helios AI racks, providing a tangible data-center deployment signal for AMD’s processors and accelerators. HPE CFO discusses $1.2B deal with Vultr to deploy AMD Helios AI racks
• Positive Sentiment: Broad semiconductor strength and easier-rate expectations: Chip stocks rallied after weaker U.S. employment data reduced expectations for another Federal Reserve rate increase. AMD also benefited from investors’ view that it and Broadcom could lead the next phase of AI data-center construction. AMD stock gains, here’s why
• Neutral Sentiment: Long-term growth versus valuation: Bullish commentary points to expanding data-center revenue, autonomous-AI CPU demand, and large potential AI markets. However, AMD’s roughly $1 trillion market capitalization and elevated earnings multiple mean future gains depend on sustained growth and successful execution.
• Negative Sentiment: Risks remain substantial: The World Labs deal could dilute shareholders, while custom CPUs from hyperscalers may pressure AMD’s server market. Investors are also debating whether the recent rally has moved the stock near fair value, and some bearish analysts have expanded short positions. Advanced Micro Devices Is Spending $8.2 Billion to Learn What AI Needs Next

Advanced Micro Devices Company Profile

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

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