CICC Research Upgrades AMD to Outperform, Sets Target at $265

Shares of Advanced Micro Devices (NASDAQ:AMD) received a significant boost as CICC Research upgraded the company from a market perform to an outperform rating. This upgrade was detailed in a research report released on October 6, 2023, which also set a target price of $265.00 for the semiconductor manufacturer’s stock.

This positive sentiment towards AMD is echoed by several other financial institutions. On the same day, Evercore ISI raised its target price for AMD from $240.00 to $270.00, maintaining an outperform rating. Raymond James Financial also increased their price target from $120.00 to $200.00 and assigned an outperform rating to the stock. Meanwhile, Wedbush adjusted its price objective from $270.00 to $290.00, reaffirming its outperform stance. Contrarily, Weiss Ratings downgraded AMD from a “hold (C-)” to a “sell (D+)” rating earlier that week, and Erste Group Bank reduced its rating from buy to hold on September 11, 2023.

Analysts have varying perspectives on AMD’s performance, with three offering a strong buy, twenty-eight issuing buy ratings, ten suggesting hold, and one recommending sell. According to data from MarketBeat.com, the average rating for AMD stands at “Moderate Buy,” with an average target price of $263.26.

Recent Financial Performance and Guidance

AMD’s latest quarterly earnings report, released on November 4, 2023, revealed earnings per share (EPS) of $1.20, surpassing analyst expectations of $1.17. The company reported revenues of $9.25 billion, significantly exceeding projections of $8.76 billion. The year-over-year revenue growth of 35.6% demonstrates the firm’s strong market positioning. Additionally, the company achieved a return on equity of 7.54% and a net margin of 9.57%.

Looking ahead, analysts forecast AMD will post an EPS of 3.87 for the current fiscal year, reflecting continued confidence in the company’s growth trajectory.

Insider Transactions and Institutional Investments

Recent insider trading activities have also attracted attention. On October 6, 2023, Ava Hahn, Senior Vice President, sold 2,868 shares at an average price of $226.01, totaling $648,196.68. This sale decreased her ownership by 24.10%. 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.

In total, insiders have offloaded 274,118 shares in the past 90 days, valued at $46,180,719. Currently, insiders hold only 0.06% of AMD’s stock.

Institutional investors have also been active in the semiconductor sector. Norges Bank acquired a new stake worth approximately $3.09 billion in the second quarter. Kingstone Capital Partners Texas LLC and Goldman Sachs Group Inc. also made significant investments during this period, further demonstrating institutional confidence in AMD. As of now, institutional investors and hedge funds own around 71.34% of AMD’s shares.

As AMD continues to navigate the competitive semiconductor landscape, its recent upgrades and strong financial results position it favorably for future growth.