The stock price of Advanced Micro Devices Inc (NASDAQ: AMD) has plunged by -4.76 when compared to previous closing price of 121.84, but the company has seen a -3.81% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-12 that NVIDIA leads in training, while AMD focuses on inference. AMD’s open-source approach, cost-effectiveness, and energy efficiency provide competitive advantages over NVIDIA’s closed system. Recent acquisitions of Xilinx and ZT Systems enhance AMD’s AI inference and datacenter capabilities, positioning it to compete against NVIDIA.
Is It Worth Investing in Advanced Micro Devices Inc (NASDAQ: AMD) Right Now?
Advanced Micro Devices Inc (NASDAQ: AMD) has a higher price-to-earnings ratio of 103.80x compared to its average ratio, The 36-month beta value for AMD is at 1.66. Analysts have varying views on the stock, with 30 analysts rating it as a “buy,” 7 rating it as “overweight,” 13 as “hold,” and 1 as “sell.”
The public float for AMD is 1.61B, and currently, shorts hold a 3.68% of that float. The average trading volume for AMD on January 13, 2025 was 36.95M shares.
AMD’s Market Performance
AMD stock saw a decrease of -3.81% in the past week, with a monthly decline of -11.33% and a quarterly a decrease of -32.15%. The volatility ratio for the week is 3.58%, and the volatility levels for the last 30 days are 3.49% for Advanced Micro Devices Inc (AMD). The simple moving average for the past 20 days is -6.57% for AMD’s stock, with a -23.52% simple moving average for the past 200 days.
Analysts’ Opinion of AMD
Many brokerage firms have already submitted their reports for AMD stocks, with Goldman repeating the rating for AMD by listing it as a “Neutral.” The predicted price for AMD in the upcoming period, according to Goldman is $129 based on the research report published on January 10, 2025 of the current year 2025.
HSBC Securities, on the other hand, stated in their research note that they expect to see AMD reach a price target of $110. The rating they have provided for AMD stocks is “Reduce” according to the report published on January 08th, 2025.
BofA Securities gave a rating of “Neutral” to AMD, setting the target price at $155 in the report published on December 09th of the previous year.
AMD Trading at -13.72% from the 50-Day Moving Average
After a stumble in the market that brought AMD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -48.95% of loss for the given period.
Volatility was left at 3.49%, however, over the last 30 days, the volatility rate increased by 3.58%, as shares sank -9.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -27.44% lower at present.
During the last 5 trading sessions, AMD fell by -3.81%, which changed the moving average for the period of 200-days by -35.04% in comparison to the 20-day moving average, which settled at $124.20. In addition, Advanced Micro Devices Inc saw -3.93% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AMD starting from Su Lisa T, who sale 76,496 shares at the price of $142.66 back on Dec 04 ’24. After this action, Su Lisa T now owns 3,566,762 shares of Advanced Micro Devices Inc, valued at $10,912,740 using the latest closing price.
LISA SU, the Director of Advanced Micro Devices Inc, proposed sale 76,496 shares at $141.98 during a trade that took place back on Dec 04 ’24, which means that LISA SU is holding shares at $10,860,902 based on the most recent closing price.
Stock Fundamentals for AMD
Current profitability levels for the company are sitting at:
- 0.06 for the present operating margin
- 0.51 for the gross margin
The net margin for Advanced Micro Devices Inc stands at 0.08. The total capital return value is set at 0.02. Equity return is now at value 3.26, with 2.66 for asset returns.
Based on Advanced Micro Devices Inc (AMD), the company’s capital structure generated 0.03 points at debt to capital in total, while cash flow to debt ratio is standing at 1.23. The debt to equity ratio resting at 0.03. The interest coverage ratio of the stock is 13.71.
Currently, EBITDA for the company is 4.15 billion with net debt to EBITDA at -0.35. When we switch over and look at the enterprise to sales, we see a ratio of 7.68. The receivables turnover for the company is 3.34for trailing twelve months and the total asset turnover is 0.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.50.
Conclusion
In conclusion, Advanced Micro Devices Inc (AMD) has had a bad performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
