CICC Research Upgrades Advanced Micro Devices to Outperform

CICC Research has upgraded shares of Advanced Micro Devices (NASDAQ: AMD) from a market perform rating to an outperform rating, according to a report released on October 6, 2023. The research firm has set a target price of $265.00 for the semiconductor manufacturer. This change comes amid a flurry of activity surrounding AMD’s stock, as various research firms continue to evaluate its performance.

Several analysts have offered insights on AMD’s stock in recent weeks. Weiss Ratings downgraded it from a “hold (C-)” rating to a “sell (D+)” on October 8, 2023. Conversely, Evercore ISI raised their target price from $240.00 to $270.00 with an “outperform” rating. Similarly, Raymond James Financial increased their price target on AMD from $120.00 to $200.00, also issuing an “outperform” rating on August 6, 2023.

Adding to this mix, Wedbush boosted their price objective from $270.00 to $290.00, while Erste Group Bank adjusted its rating from “buy” to “hold” on September 11, 2023. Overall, three investment analysts have assigned a Strong Buy rating, while twenty-eight others have issued a Buy rating. Analysts currently rate AMD with an average rating of “Moderate Buy” and an average target price of $263.26, according to data from MarketBeat.com.

Recent Earnings Performance

AMD recently reported its quarterly earnings on November 4, 2023. The company posted earnings per share (EPS) of $1.20, surpassing analysts’ consensus estimates 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, significantly exceeding analyst expectations of $8.76 billion. This represents a substantial year-over-year revenue growth of 35.6%, compared to $0.92 EPS during the same quarter last year.

Looking ahead, AMD has set its guidance for Q4 2025 at an EPS of $3.87 for the current fiscal year, indicating positive expectations for continued growth.

Insider Trading Activity

In related developments, insider trading has shown notable activity. Ava Hahn, Senior Vice President, sold 2,868 shares of AMD on October 6, 2023, at an average price of $226.01, totaling approximately $648,196.68. Following this transaction, Hahn’s remaining shares are valued at around $2,041,548.33, reflecting a 24.10% decrease in ownership.

Additionally, Paul Darren Grasby, Executive Vice President, sold 10,000 shares on August 12, 2023, at an average price of $173.21, amounting to $1,732,100.00. Grasby now holds 125,505 shares, valued at approximately $21,738,721.05, which represents a 7.38% decrease in ownership. Over the last 90 days, insiders have sold a total of 274,118 shares valued at $46,180,719. Currently, insiders own 0.06% of the company’s stock.

Institutional Investor Activity

Institutional investors and hedge funds have been active regarding AMD’s stock. Norges Bank acquired a new stake during the second quarter, valued at approximately $3.094 billion. Kingstone Capital Partners Texas LLC also entered the market with a new stake valued at around $958.4 million.

Moreover, Goldman Sachs Group Inc. increased its holdings by 169.7% in the first quarter, owning 9,855,341 shares worth about $1.012 billion after purchasing an additional 6,200,850 shares. T. Rowe Price Investment Management Inc. boosted its stake by 131.5%, now holding 10,413,139 shares valued at approximately $1.069 billion.

As of now, institutional investors and hedge funds collectively own 71.34% of AMD’s stock, indicating strong confidence in the company’s future prospects.

This ongoing interest from both analysts and institutional investors highlights the evolving landscape for Advanced Micro Devices, as it continues to navigate a competitive semiconductor market.