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Shares of Advanced Micro Devices (AMD - Free Report) soared over 6.5% Thursday to hit a 52-week high on the back of an analyst upgrade that highlighted the chipmaker’s ability to compete against rival Intel (INTC - Free Report) . The question for investors is should they buy AMD stock even after it climbed to a new high?
Upgrade
Analysts at Rosenblatt Securities raised their price target for shares of AMD from $27 to $30, which marked a roughly 44% upside from Wednesday’s closing price of $20.90 per share. The firm based its new AMD price target on the firm’s current advantages over Intel as well as Nvidia (NVDA - Free Report) , which followed a meeting with AMD executives. “AMD never planned or expected Intel to have 10nm delays in their own product planning from years' back and acknowledges that a historical window of opportunity has opened,” analyst Hans Mosesmann wrote in a note to clients Thursday.
“We believe AMD has a multi-year advantage vs. Intel in CPUs with 7nm and a 6-month plus advantage vs. Nvidia in GPUs for the datacenter.”
Intel has experienced multiple delays on the mass production roll out of its 10-nanometer chips, which aren’t due out until late 2019. In contrast, AMD’s 7-nanometer products are set to launch later this year. Rosenblatt’s new $30 price target marks the highest of the 26 analysts who cover AMD, according to FactSet.
AMD saw its stock price surge over 6.5% through early afternoon trading Thursday to hit $22.29 per share, which represented a new 52-week high and marked its highest price point since 2006.
Price Movement
AMD’s climb is part of a massive run. Shares of AMD have skyrocketed over 116% since the start of the year, which blows away its industry’s 6% gains and the S&P 500’s roughly 7% jump. Over the last five years, AMD has seen its stock price soar over 522%. More impressively, shares of AMD are up 1,173% over the last three years, from under $2 per share in August of 2015.
Outlook
Looking ahead, our current Zacks Consensus Estimate is calling for AMD’s full-year revenues to surge by 25.5% to hit $6.69 billion. At the other end of the income statement, the firm is expected to see its adjusted quarterly earnings soar 176% from $0.17 per share to $0.47 per share.
Investors should be pleased to see these impressive top and bottom line growth projection for AMD’s current fiscal year. However, the company’s earnings revision activity has been relatively mixed recently. AMD has seen five upward earnings estimate revisions for its current fiscal year as well the following year, over the last 30 days. But the firm has also seen three downward revisions during this same stretch for both periods, which helps land AMD a Zacks Rank #3 (Hold).
Plus, AMD is currently trading at 43X forward 12-month Zacks Consensus EPS estimates, which marks a massive premium compared to the S&P’s 17.4X and its industry’s 11X average. Therefore, AMD stock might be one to just keep an eye on for now, especially at a new decade-plus high.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
AMD Stock Hits New High: Time to Buy?
Shares of Advanced Micro Devices (AMD - Free Report) soared over 6.5% Thursday to hit a 52-week high on the back of an analyst upgrade that highlighted the chipmaker’s ability to compete against rival Intel (INTC - Free Report) . The question for investors is should they buy AMD stock even after it climbed to a new high?
Upgrade
Analysts at Rosenblatt Securities raised their price target for shares of AMD from $27 to $30, which marked a roughly 44% upside from Wednesday’s closing price of $20.90 per share. The firm based its new AMD price target on the firm’s current advantages over Intel as well as Nvidia (NVDA - Free Report) , which followed a meeting with AMD executives. “AMD never planned or expected Intel to have 10nm delays in their own product planning from years' back and acknowledges that a historical window of opportunity has opened,” analyst Hans Mosesmann wrote in a note to clients Thursday.
“We believe AMD has a multi-year advantage vs. Intel in CPUs with 7nm and a 6-month plus advantage vs. Nvidia in GPUs for the datacenter.”
Intel has experienced multiple delays on the mass production roll out of its 10-nanometer chips, which aren’t due out until late 2019. In contrast, AMD’s 7-nanometer products are set to launch later this year. Rosenblatt’s new $30 price target marks the highest of the 26 analysts who cover AMD, according to FactSet.
AMD saw its stock price surge over 6.5% through early afternoon trading Thursday to hit $22.29 per share, which represented a new 52-week high and marked its highest price point since 2006.
Price Movement
AMD’s climb is part of a massive run. Shares of AMD have skyrocketed over 116% since the start of the year, which blows away its industry’s 6% gains and the S&P 500’s roughly 7% jump. Over the last five years, AMD has seen its stock price soar over 522%. More impressively, shares of AMD are up 1,173% over the last three years, from under $2 per share in August of 2015.
Outlook
Looking ahead, our current Zacks Consensus Estimate is calling for AMD’s full-year revenues to surge by 25.5% to hit $6.69 billion. At the other end of the income statement, the firm is expected to see its adjusted quarterly earnings soar 176% from $0.17 per share to $0.47 per share.
Investors should be pleased to see these impressive top and bottom line growth projection for AMD’s current fiscal year. However, the company’s earnings revision activity has been relatively mixed recently. AMD has seen five upward earnings estimate revisions for its current fiscal year as well the following year, over the last 30 days. But the firm has also seen three downward revisions during this same stretch for both periods, which helps land AMD a Zacks Rank #3 (Hold).
Plus, AMD is currently trading at 43X forward 12-month Zacks Consensus EPS estimates, which marks a massive premium compared to the S&P’s 17.4X and its industry’s 11X average. Therefore, AMD stock might be one to just keep an eye on for now, especially at a new decade-plus high.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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