Wedbush Reaffirms Outperform Rating for Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices (NASDAQ:AMD)‘s stock had its “outperform” rating reissued by research analysts at Wedbush in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $600.00 price objective on the semiconductor manufacturer’s stock. Wedbush‘s target price would suggest a potential upside of 17.56% from the company’s current price.

Other equities research analysts also recently issued reports about the stock. Morgan Stanley lifted their price target on shares of Advanced Micro Devices from $465.00 to $510.00 and gave the company an “equal weight” rating in a research report on Monday. Bank of America lowered their price target on Advanced Micro Devices from $720.00 to $650.00 and set a “buy” rating on the stock in a report on Wednesday. Zacks Research downgraded Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 1st. UBS Group reaffirmed a “buy” rating on shares of Advanced Micro Devices in a report on Wednesday. Finally, DA Davidson lifted their price objective on Advanced Micro Devices from $550.00 to $600.00 and gave the stock a “buy” rating in a report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of “Moderate Buy” and a consensus target price of $608.22.

Advanced Micro Devices Stock Performance

Shares of AMD opened at $510.39 on Wednesday. The company has a 50-day simple moving average of $548.70 and a 200-day simple moving average of $411.73. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $833.20 billion, a PE ratio of 124.72, a P/E/G ratio of 4.79 and a beta of 2.49. Advanced Micro Devices has a 52-week low of $188.22 and a 52-week high of $658.52.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $13.38 billion for the quarter, compared to the consensus estimate of $13.10 billion. During the same quarter in the previous year, the firm earned $1.20 earnings per share. The firm’s revenue was up 44.7% on a year-over-year basis. Equities research analysts predict that Advanced Micro Devices will post 6.50 earnings per share for the current fiscal year.

Insider Activity

In other Advanced Micro Devices news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares in the company, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Papermaster sold 28,811 shares of the firm’s stock in a transaction 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 transaction, the executive vice president directly owned 1,261,461 shares of the company’s stock, valued at $595,245,602.07. The trade was a 2.23% decrease in their position. 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 231,100 shares of company stock worth $114,867,400 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its holdings in shares of Advanced Micro Devices by 3.1% during the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares during the last quarter. State Street Corp increased its stake in Advanced Micro Devices by 2.9% in the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer’s stock valued at $46,606,266,000 after purchasing an additional 2,149,563 shares during the last quarter. Bank of America Corp DE purchased a new position in Advanced Micro Devices during the second quarter worth about $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 buying an additional 545,575 shares during the period. Finally, Wellington Management Group LLP lifted its position in 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 buying an additional 2,365,419 shares during the period. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD beat third-quarter estimates, with revenue of $13.38 billion and earnings of $2.09 per share. Data Center revenue nearly doubled, rising 97% to $8.55 billion, led by Instinct GPU and EPYC CPU sales. Reuters report on AMD’s results and outlook
• Positive Sentiment: The fourth-quarter revenue forecast of about $17 billion topped expectations. Management also sees AI Data Center revenue more than doubling in 2027, reinforcing expectations that AI demand can sustain rapid growth. Benzinga report on AMD’s AI outlook
• Positive Sentiment: Several analysts remain constructive: DA Davidson raised its price target to $600, while Cantor Fitzgerald and Rosenblatt reaffirmed $700 targets. Benzinga summary of analyst revisions
• Neutral Sentiment: Analyst views are mixed following the results, with some target increases and some cuts. The strong outlook has eased concerns about the durability of AI spending, but investors will look for evidence that demand converts into sustained profits and cash generation. CNBC analyst reaction
• Negative Sentiment: Cash generation is a key watchpoint: reports highlighted sharply lower free cash flow and a sizable inventory build as AMD invests to meet anticipated demand. The company’s 55% fourth-quarter gross-margin forecast also came in slightly below expectations, with high-bandwidth memory availability posing a potential constraint. Barchart analysis of inventory and cash flow
• Negative Sentiment: AMD’s valuation remains demanding after its sharp rally, leaving the stock vulnerable if growth or margins fall short of elevated expectations. Valuation and risk analysis

Advanced Micro Devices Company Profile

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.