Advanced Micro Devices’ (AMD) “Buy” Rating Reaffirmed at Rosenblatt Securities

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

Other equities analysts have also issued research reports about the stock. BMO Capital Markets started coverage on shares of Advanced Micro Devices in a research report on Thursday, August 20th. They set an “outperform” rating and a $550.00 price target for the company. Wedbush reaffirmed an “outperform” rating and set a $600.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. DA Davidson upped their target price on Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Benchmark increased their price objective on Advanced Micro Devices from $485.00 to $685.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Finally, Argus upped their price objective on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Three 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 given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $567.63.

Advanced Micro Devices Trading Up 3.0%

NASDAQ:AMD traded up $18.18 on Tuesday, reaching $633.91. 19,323,013 shares of the company’s stock were exchanged, compared to its average volume of 32,866,156. The firm has a market capitalization of $1.03 trillion, a price-to-earnings ratio of 162.96, a price-to-earnings-growth ratio of 6.35 and a beta of 2.45. The business has a fifty day moving average of $510.41 and a 200-day moving average of $443.02. Advanced Micro Devices has a 52-week low of $163.14 and a 52-week high of $645.46. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

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

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 28,811 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction 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. The trade was a 2.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,261 shares of the business’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $503.05, for a total transaction of $8,683,146.05. Following the completion of the sale, the executive vice president directly owned 363,317 shares of the company’s stock, valued at $182,766,616.85. This represents a 4.54% 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 have sold a total of 213,838 shares of company stock valued at $105,533,836 in the last ninety days. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of AMD. Bank of America Corp DE bought a new stake in shares of Advanced Micro Devices during the 2nd quarter worth about $7,022,226,000. Cardano Risk Management B.V. bought a new stake in shares of Advanced Micro Devices during the fourth quarter worth $1,000,783,000. BlackRock Inc. raised its holdings in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock valued at $87,311,650,000 after buying an additional 4,535,126 shares during the last quarter. Franklin Resources Inc. raised its holdings in Advanced Micro Devices by 340.1% in the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer’s stock valued at $1,016,796,000 after buying an additional 3,669,054 shares during the last quarter. Finally, Jupiter Topco LLC bought a new stake in shares of Advanced Micro Devices in the 2nd quarter valued at about $2,084,651,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Key Stories Impacting Advanced Micro Devices

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.