CICC Research has upgraded shares of Advanced Micro Devices (NASDAQ: AMD) from a “market perform” rating to an “outperform” rating in a research report released on October 6, 2023. The firm has set a target price of $265.00 for the semiconductor manufacturer’s stock, reflecting a positive outlook amid ongoing developments in the technology sector.
Several other research firms have also adjusted their ratings and target prices for AMD. On the same day, Weiss Ratings downgraded the company’s shares from a “hold (C-)” rating to a “sell (D+)” rating. In contrast, Evercore ISI raised its target price from $240.00 to $270.00, maintaining an “outperform” rating. Similarly, Raymond James Financial increased its price target from $120.00 to $200.00, also designating the stock as “outperform” in a note published on August 6, 2023.
In another notable shift, Wedbush raised its price objective for AMD from $270.00 to $290.00, continuing to endorse an “outperform” rating. However, Erste Group Bank took a different stance, lowering AMD from a “buy” rating to a “hold” rating in a report dated September 11, 2023.
As a result of these evaluations, the consensus among analysts indicates a robust interest in AMD stock. Currently, three analysts have rated it as a “Strong Buy,” while twenty-eight have issued a “Buy” rating, ten have given a “Hold” rating, and one has issued a “Sell” rating. According to data from MarketBeat.com, AMD has an average rating of “Moderate Buy” with an average target price of $263.26.
AMD’s Financial Performance and Guidance
Advanced Micro Devices recently reported its quarterly earnings on November 4, 2023. The company achieved earnings per share (EPS) of $1.20, exceeding analysts’ consensus estimates of $1.17 by $0.03. During the quarter, AMD recorded a return on equity of 7.54% and a net margin of 9.57%. The firm’s revenue totaled $9.25 billion, surpassing analyst expectations of $8.76 billion. This represents a significant increase, with revenue up 35.6% compared to the same quarter the previous year.
Looking ahead, AMD has provided guidance for the fourth quarter of 2025, with analysts predicting an EPS of $3.87 for the current fiscal year.
Insider Trading Activity
In related news, insider trading activity has been notable. On October 6, 2023, Senior Vice President Ava Hahn sold 2,868 shares of AMD at an average price of $226.01, resulting in a total transaction of $648,196.68. Following this sale, Hahn retained 9,033 shares valued at approximately $2,041,548.33, reflecting a 24.10% decrease in ownership.
Additionally, Executive Vice President Paul Darren Grasby sold 10,000 shares on August 12, 2023, at an average price of $173.21, totaling $1,732,100.00. Grasby now owns 125,505 shares valued at about $21,738,721.05, which is a 7.38% decline in ownership. Over the last 90 days, insiders have sold a total of 274,118 shares valued at $46,180,719. Currently, 0.06% of the stock is held by insiders.
Institutional Investment Trends
Institutional investors and hedge funds have also made significant moves regarding AMD shares. Norges Bank significantly increased its stake during the second quarter, acquiring a new position valued at approximately $3.09 billion. Kingstone Capital Partners Texas LLC also purchased a new stake in AMD worth $958.42 million.
Moreover, Goldman Sachs Group Inc. boosted its holdings in AMD by 169.7% during the first quarter, now owning 9,855,341 shares valued at around $1.01 billion. T. Rowe Price Investment Management Inc. also increased its stake by 131.5%, now holding 10,413,139 shares valued at approximately $1.07 billion.
Currently, institutional investors and hedge funds control 71.34% of AMD’s stock, indicating strong institutional confidence in the company’s future prospects.
About Advanced Micro Devices
Advanced Micro Devices, Inc. operates as a global semiconductor company with a diverse portfolio. The company is organized into several segments, including Data Center, Client, Gaming, and Embedded. AMD designs and produces x86 microprocessors, graphics processing units (GPUs), and various other technologies, including semi-custom system-on-chip (SoC) products and field programmable gate arrays (FPGAs).
As AMD continues to evolve in the competitive semiconductor landscape, its recent upgrades and robust financial performance highlight a promising trajectory for the company.
