Advanced Micro Devices (NASDAQ:AMD) Shares Climb 7.3% – Time to Buy?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares traded up 7.3% during mid-day trading on Wednesday. The company traded as high as $567.65 and last traded at $552.90. Approximately 42,567,708 shares changed hands during mid-day trading, an increase of 32% from the average daily volume of 32,252,742 shares. The stock had previously closed at $515.21.

Trending Headlines about Advanced Micro Devices

Here are a few of the latest headlines about AMD:

• Positive Sentiment: Reports that 22 large funds bought AMD shares point to institutional interest, with the stock trading well below its recent high. 22 Big Funds Bought Advanced Micro Devices
• Neutral Sentiment: Some analysts see Nvidia’s leadership turmoil as a chance for AMD to win AI-chip business, although any share gains remain uncertain and could take time to materialize. Analysts See Runway for AMD
• Negative Sentiment: Valuation and execution risks remain: one report flags rising inventory and a limited shipping track record as potential hurdles to sustaining the rally. AMD’s Growth Tailwinds and Risks

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on AMD shares. CLSA reissued an “outperform” rating and issued a $710.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, September 9th. Sanford C. Bernstein downgraded Advanced Micro Devices from an “outperform” rating to a “market perform” rating in a research note on Thursday. DA Davidson upped their price objective on Advanced Micro Devices from $550.00 to $600.00 and gave the company a “buy” rating in a research note on Wednesday, November 4th. Wall Street Zen raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Sunday, November 8th. Finally, Mizuho decreased their target price on Advanced Micro Devices from $705.00 to $610.00 and set an “outperform” rating for the company in a research report on Wednesday, November 4th. Three 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $640.11.

Advanced Micro Devices Trading Down 8.8%

The stock has a market cap of $875.75 billion, a price-to-earnings ratio of 115.36, a price-to-earnings-growth ratio of 5.32 and a beta of 2.49. The firm’s 50 day moving average is $552.99 and its two-hundred day moving average is $420.72. The company has a quick ratio of 1.93, a current ratio of 2.72 and a debt-to-equity ratio of 0.10.

Advanced Micro Devices (NASDAQ:AMD) last issued its earnings results on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The firm had revenue of $13.38 billion for the quarter, compared to analysts’ expectations of $13.10 billion. Advanced Micro Devices had a net margin of 16.77% and a return on equity of 14.15%. Advanced Micro Devices’s revenue was up 44.7% on a year-over-year basis. During the same quarter last year, the company posted $1.20 earnings per share. Equities analysts anticipate that Advanced Micro Devices, Inc. will post 6.93 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 70,000 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the sale, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at $1,536,696,660.80. This trade represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the sale, the executive vice president owned 117,687 shares in the company, valued at $60,598,213.17. The trade was a 11.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 223,588 shares of company stock worth $111,208,302. 0.50% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. grew 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 worth $87,311,650,000 after buying an additional 4,535,126 shares in the last quarter. State Street Corp raised its stake 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 valued at $46,606,266,000 after acquiring an additional 2,149,563 shares in the last quarter. Bank of America Corp DE acquired a new position in Advanced Micro Devices during the 2nd quarter worth $7,022,226,000. Jennison Associates LLC lifted its holdings in Advanced Micro Devices by 5.8% in the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after purchasing an additional 545,575 shares during the period. Finally, Wellington Management Group LLP lifted its holdings in Advanced Micro Devices by 33.9% in the second 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. 71.34% of the stock is currently owned by institutional investors.

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.