Semiconductor company Advanced Micro Devices (AMD) released its earnings report after markets closed yesterday, and some traders might be wondering if now is the right time to buy AMD stock. First off, potential investors will note that AMD’s adjusted earnings per share of 96 cents and revenue of $7.44 billion beat Wall Streets’ estimates of 94 cents per share and $7.12 billion in revenue.
AMD also provided a guidance update in its latest earnings report. The company expects Q2 revenue to range from $7.1 billion to $7.7 billion. At a midpoint of $7.4 billion, this would surpass analysts’ revenue estimate of $7.24 billion.
Finally, AMD was in the news today after it revealed that Amazon (AMZN) bought 822,234 shares of its stock. This $84.4 million purchase could be a sign that Amazon will rely on AMD to power its artificial intelligence (AI) servers as demand for AI services increase.
What Do Analysts Think About AMD Stock?
Advanced Micro Devices received a slew of updated analyst ratings and price targets after its latest earnings report. While the earnings report was strong, it largely resulted in analysts reiterating previous ratings for the stock, whether they were Buy or Neutral.
What did change were price targets. Let’s take a look at how analysts rated five stars on TipRanks updated their coverage of AMD stock.
- Morgan Stanley analyst Joseph Moore lowered the stock from $137 to $121.
- Bank of America analyst Vivek Arya increased his price target from $105 to $120.
- Roth MKM analyst Sujeeva De Silva cut AMD’s price target from $140 to $125.
- Jefferies analyst Blayne Curtis slashed his AMD stock price target from $120 to $100.
- Piper Sandler analyst Harsh Kumar decreased the company’s price target from $140 to $125.
Price cuts despite an earnings beat could be a sign that analysts expect trouble for AMD. This will likely come from the trade war between the U.S. and China, which has resulted in export bans on certain chips, import tariffs, and other potential issues.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 18 Buy and seven Hold ratings over the last three months. With that comes an average AMD price target of $124.61, representing a potential 25.43% upside for the shares. These ratings and price targets will likely change as more analyst updates are released.
