CICC Research Upgrades AMD to Outperform; Analysts Diverge on Ratings

Advanced Micro Devices (NASDAQ:AMD) has received a significant upgrade from CICC Research, which has raised its rating from market perform to outperform. This shift reflects a growing confidence in the semiconductor manufacturer, with a target price set at $265.00 per share. The announcement was made in a research report published on October 6, 2023, and it comes amid mixed reactions from other analysts in the industry.

Several firms have provided contrasting evaluations of AMD’s stock. On the same day as CICC’s upgrade, Weiss Ratings downgraded AMD from a “hold (C-)” rating to a “sell (D+)” rating. Conversely, Evercore ISI increased their target price from $240.00 to $270.00 while maintaining an outperform rating. Additionally, Raymond James Financial lifted its price target from $120.00 to $200.00, also designating the stock as outperform. On September 11, 2023, Erste Group Bank downgraded AMD from a buy rating to hold.

As it stands, three investment analysts classify AMD shares as a Strong Buy, while twenty-eight suggest a Buy rating. In contrast, ten analysts have issued a Hold rating, and one has declared a Sell rating. According to data from MarketBeat.com, AMD currently holds an average rating of “Moderate Buy” and an average target price of $263.26.

Recent Earnings and Insider Activity

AMD recently announced its quarterly earnings on November 4, 2023. The company reported earnings of $1.20 per share (EPS), surpassing analysts’ expectations of $1.17 by $0.03. Revenue for the quarter reached $9.25 billion, exceeding analyst estimates of $8.76 billion. This reflects a remarkable increase of 35.6% compared to the same quarter last year, when AMD posted EPS of $0.92. The company has also projected EPS guidance for the fourth quarter of 2025.

In terms of insider trading, significant transactions have occurred recently. Senior Vice President Ava Hahn sold 2,868 shares of AMD stock on October 6, 2023, at an average price of $226.01, totaling approximately $648,196.68. Following this transaction, she retained 9,033 shares valued at approximately $2,041,548.33, marking a decrease in her ownership of 24.10%. Moreover, Executive Vice President Paul Darren Grasby sold 10,000 shares on August 12, 2023, at an average price of $173.21, equating to a total of $1,732,100.00. After this sale, Grasby owned 125,505 shares valued at around $21,738,721.05.

Over the past 90 days, insiders have disposed of 274,118 shares, amounting to approximately $46,180,719. Currently, insiders hold 0.06% of the company’s stock.

Institutional Investors’ Movements

In recent months, institutional investors have actively adjusted their stakes in AMD. Norges Bank acquired a new stake in the company during the second quarter, valuing approximately $3.09 billion. Kingstone Capital Partners Texas LLC also purchased a new stake, estimated at $958.42 million.

Goldman Sachs Group Inc. notably increased its position in AMD by 169.7% during the first quarter, now owning 9,855,341 shares valued at around $1.01 billion after acquiring an additional 6,200,850 shares. Similarly, T. Rowe Price Investment Management Inc. raised its stake by 131.5%, now holding 10,413,139 shares worth approximately $1.07 billion. Nuveen LLC also entered the picture, acquiring a new stake valued at about $436.75 million.

At present, institutional investors and hedge funds collectively own 71.34% of AMD’s stock, reflecting a robust interest in the semiconductor sector.

AMD continues to be a significant player in the semiconductor industry, operating through various segments including Data Center, Client, Gaming, and Embedded. The company provides a diverse range of products, including x86 microprocessors, graphics processing units (GPUs), and various development services. As market analysts adjust their ratings, AMD’s performance will be a focal point for investors and industry observers alike.