Susquehanna Forecasts Strong Price Appreciation for Advanced Micro Devices (NASDAQ:AMD) Stock

Advanced Micro Devices (NASDAQ:AMD) had its price target raised by investment analysts at Susquehanna from $550.00 to $620.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has a “positive” rating on the semiconductor manufacturer’s stock. Susquehanna’s price target would suggest a potential upside of 15.94% from the stock’s previous close.

Several other analysts have also recently issued reports on AMD. DA Davidson increased their price target on shares of Advanced Micro Devices from $425.00 to $550.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. The Goldman Sachs Group upped their target price on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Rosenblatt Securities reiterated a “buy” rating and set a $700.00 target price on shares of Advanced Micro Devices in a report on Tuesday, September 29th. Robert W. Baird set a $1,250.00 target price on shares of Advanced Micro Devices in a report on Friday, July 24th. Finally, UBS Group reissued an “overweight” rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $606.76.

Advanced Micro Devices Price Performance

AMD opened at $534.74 on Wednesday. The stock’s 50-day moving average price is $539.60 and its 200 day moving average price is $478.81. Advanced Micro Devices has a 12-month low of $188.22 and a 12-month high of $658.52. The firm has a market cap of $872.95 billion, a price-to-earnings ratio of 137.47, a PEG ratio of 5.52 and a beta of 2.45. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The company 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%. Advanced Micro Devices’s revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the business posted $0.48 EPS. As a group, sell-side analysts expect that Advanced Micro Devices will post 6.50 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark Papermaster sold 28,811 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the sale, the executive vice president directly owned 1,261,461 shares of the company’s stock, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were 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 owned 160,979 shares in the company, 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 have sold a total of 231,100 shares of company stock worth $114,867,400 over the last ninety days. 0.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors and hedge funds have recently modified their holdings of the company. MJT & Associates Financial Advisory Group Inc. acquired a new position in Advanced Micro Devices in the third quarter valued at approximately $29,000. JNBA Financial Advisors increased its stake in Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer’s stock valued at $30,000 after purchasing an additional 30 shares during the last quarter. Graney & King LLC acquired a new stake in Advanced Micro Devices during the first quarter worth approximately $31,000. Main Street Group LTD acquired a new stake in Advanced Micro Devices during the first quarter worth approximately $33,000. Finally, Downshift Financial LLC raised its holdings in Advanced Micro Devices by 850.0% during the third quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer’s stock worth $35,000 after purchasing an additional 51 shares in the last quarter. Institutional investors and hedge funds own 71.34% of the company’s stock.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Expanded AI infrastructure partnership: Vultr plans to deploy AMD Instinct MI355X GPUs in a new 20-megawatt supercluster in Chennai, India. The project would become India’s largest AMD Instinct deployment and supports AMD’s efforts to gain share in enterprise and sovereign AI computing. Vultr and AMD Expand Global Collaboration
• Positive Sentiment: AI spending remains supportive: Stronger-than-expected updates from Super Micro Computer and SpaceX revived optimism that spending on AI servers and related infrastructure remains robust, lifting AMD and other semiconductor stocks in premarket trading. Why Nvidia AMD and Intel Stocks Are Surging
• Positive Sentiment: Analyst support and server demand: Wedbush reaffirmed an outperform rating with a $600 price target, citing potential upside from server CPU demand. The firm’s view provides a near-term catalyst ahead of AMD’s third-quarter earnings report. Advanced Micro Devices Server CPU Demand
• Neutral Sentiment: Upcoming earnings are pivotal: Investors are focused on the expected November 3 report, with results and guidance likely to determine whether AMD’s strong AI and data-center growth can justify its substantial recent gains.
• Negative Sentiment: Valuation and AI-cycle concerns remain: AMD’s valuation is demanding, with the provided data showing a P/E ratio above 137. Analysts and investors remain concerned that AI spending could slow, margins could be pressured during the Helios ramp, or financing issues in the data-center ecosystem could increase volatility. Should You Buy the Dip

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.