Analysts rate Advanced Microdevices Inc. (AMD:NSD) with a Strong Buy rating and a $118 target

STA Research
by: STA Research
AMD Stock Price

Based on the Advanced Micro Devices stock forecast from 25 analysts, the average analyst AMD stock price target is USD 118.08 over the next 12 months. Advanced Micro Devices Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of AMD stock forecast is Slightly Bullish, which is based on 9 positive signals and 6 negative signals. At the last closing, Advanced Micro Devices stock price was USD 77.03Advanced Micro Devices stock price has changed by -1.69% over the past week, -23.80% over the past month and -27.14% over the last year.

About Advanced Microdevices Inc. (AMD:NSD):

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. It serves original equipment manufacturers, public cloud service providers, original design manufacturers, system integrators, independent distributors, online retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.

 

What we like:

High market capitalization:

AMD stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

AMD stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

AMD stock forecast shows that the stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

AMD stock forecast shows that the stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

AMD stock forecast shows that the stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

AMD stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis:

AMD stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity:

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets:

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis:

AMD stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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