Advanced Micro Devices (NASDAQ:AMD) Stock Rating Raised to “Outperform” at William Blair

Advanced Micro Devices (NASDAQ:AMD) was upgraded by William Blair from a “market perform” rating to an “outperform” rating in a report issued on Thursday, Marketbeat Ratings reports.

Several other research analysts have also recently commented on AMD. BMO Capital Markets started coverage on 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. Wolfe Research reiterated an “outperform” rating and set a $650.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, November 4th. Melius Research set a $650.00 price objective on Advanced Micro Devices in a report on Wednesday, November 4th. Cantor Fitzgerald reissued an “overweight” rating and issued a $700.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, November 4th. Finally, Bank of America lowered their target price on shares of Advanced Micro Devices from $720.00 to $650.00 and set a “buy” rating on the stock in a report on Wednesday, November 4th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average price target of $642.47.

Advanced Micro Devices Trading Up 7.3%

Shares of NASDAQ:AMD opened at $552.90 on Thursday. The company’s 50-day moving average price is $550.43 and its two-hundred day moving average price is $419.05. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.72 and a quick ratio of 1.93. Advanced Micro Devices has a one year low of $188.22 and a one year high of $658.52. The stock has a market capitalization of $906.81 billion, a PE ratio of 120.20, a price-to-earnings-growth ratio of 4.96 and a beta of 2.49.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 earnings per share for the quarter, beating the consensus estimate of $1.95 by $0.14. The company had revenue of $13.38 billion during the quarter, compared to analysts’ expectations of $13.10 billion. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. Advanced Micro Devices’s revenue for the quarter was up 44.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.20 EPS. On average, equities analysts forecast that Advanced Micro Devices will post 6.93 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 28,811 shares of the company’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 value of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. This represents a 2.23% decrease in their ownership of the stock. The transaction 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, CEO Lisa T. Su sold 70,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $506.80, for a total value of $35,476,000.00. Following the completion of the sale, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at approximately $1,536,696,660.80. The trade was a 2.26% 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 have sold a total of 230,957 shares of company stock valued at $114,799,511 in the last three months. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in AMD. BlackRock Inc. boosted its holdings in shares of Advanced Micro Devices by 3.1% during 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 during the period. State Street Corp lifted its position in Advanced Micro Devices by 2.9% during the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock worth $46,606,266,000 after acquiring an additional 2,149,563 shares during the last quarter. Bank of America Corp DE acquired a new stake in Advanced Micro Devices during the second quarter worth approximately $7,022,226,000. Jennison Associates LLC lifted its position in Advanced Micro Devices by 5.8% during the second quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer’s stock worth $5,793,388,000 after acquiring an additional 545,575 shares during the last quarter. Finally, Wellington Management Group LLP boosted its holdings in shares of Advanced Micro Devices by 33.9% during 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 acquiring an additional 2,365,419 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

Top Advanced Micro Devices Stories

These are some of the AMD stories that stood out recently:

• Positive Sentiment: Investors are also responding to expectations that hyperscalers will spend more on AI infrastructure than previously forecast. Consensus estimates for their capital expenditures have risen substantially, supporting demand prospects for AMD’s chips. Great News for Nvidia, Micron, Broadcom, and AMD Stock Investors
• Positive Sentiment: AMD’s EPYC server processors and AI products are gaining visibility through cloud and server deployments, including Google’s use of 5th-generation EPYC chips and new AMD-powered AI systems from Supermicro. These developments may help broaden AMD’s data-center sales. What Is Going on With AMD Stock on Wednesday?
• Negative Sentiment: Some coverage flags AMD’s high valuation alongside weaker free cash flow and rising inventory. These factors could limit further gains if growth or cash conversion disappoints. Here’s The AMD Data Center Number Investors Need to Know

Advanced Micro Devices Company Profile

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.