CICC Research Upgrades Advanced Micro Devices to Outperform
Advanced Micro Devices (NASDAQ: AMD) received a boost from CICC Research, which upgraded the semiconductor company’s stock from a market perform to an outperform rating. The research report, published on October 6, 2023, sets a target price of $265.00 for AMD shares, signaling positive sentiment about the company’s future performance.
Mixed Analyst Ratings and Target Price Adjustments
AMD’s stock has garnered mixed reviews from various research firms. On the same day as CICC’s upgrade, Weiss Ratings downgraded AMD from a “hold (c-)” to a “sell (d+)” rating, reflecting a more cautious outlook. In contrast, Evercore ISI increased its target price from $240.00 to $270.00 and maintained an outperform rating. Similarly, Raymond James Financial raised its target from $120.00 to $200.00, also designating the stock as outperform.
Further emphasizing the positive trend, Wedbush revised its price target upward from $270.00 to $290.00 while keeping an outperform rating. Meanwhile, Erste Group Bank adjusted its rating from buy to hold on September 11, 2023. Overall, the consensus among analysts includes three strong buy ratings, twenty-eight buy ratings, ten hold ratings, and one sell rating, leading to an average rating of “Moderate Buy” with a target price of $263.26, according to data from MarketBeat.com.
Latest Earnings Report and Insider Activity
AMD’s most recent quarterly earnings report, released on November 4, 2023, showed robust performance. The company reported earnings per share (EPS) of $1.20, surpassing analyst expectations of $1.17 by $0.03. The firm achieved a return on equity of 7.54% and a net margin of 9.57%. Revenue for the quarter reached $9.25 billion, exceeding forecasts of $8.76 billion, and marking a substantial 35.6% increase compared to the same quarter last year.
In related news, AMD’s Senior Vice President Ava Hahn sold 2,868 shares on October 6, 2023, at an average price of $226.01, totaling $648,196.68. Following this transaction, Hahn holds 9,033 shares valued at approximately $2,041,548.33. This sale indicates a 24.10% reduction in her ownership. Similarly, Executive Vice President Paul Darren Grasby sold 10,000 shares on August 12, 2023, for a total of $1,732,100.00, reducing his stake by 7.38%. Over the past 90 days, insiders have sold a total of 274,118 shares valued at $46,180,719, with insiders currently holding 0.06% of the stock.
Institutional Investments in AMD
Institutional investors and hedge funds have been active in adjusting their holdings in AMD. Norges Bank acquired a substantial stake valued at $3,094,662,000 during the second quarter. Kingstone Capital Partners Texas LLC also entered the scene with a new stake valued at $958,422,000. Moreover, Goldman Sachs Group Inc. increased its position in AMD by 169.7% in the first quarter, owning 9,855,341 shares worth approximately $1,012,538,000 after acquiring an additional 6,200,850 shares.
T. Rowe Price Investment Management Inc. raised its stake by 131.5%, now holding 10,413,139 shares valued at $1,069,846,000. Nuveen LLC also acquired a new stake worth about $436,746,000. Currently, institutional investors and hedge funds own approximately 71.34% of AMD’s stock.
As a leading semiconductor company, Advanced Micro Devices operates globally across various segments including Data Center, Client, Gaming, and Embedded. The firm develops x86 microprocessors, graphics processing units (GPUs), and semi-custom system-on-chip products, highlighting its significant role in the tech industry.
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