The stock of Advanced Micro Devices Inc (NASDAQ: AMD) has increased by 2.55 when compared to last closing price of 118.44. Despite this, the company has experienced a 4.67% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-19 that Reasoning models like OpenAI’s “o1” demand exponentially more inference compute, which benefits AMD due to its superior memory bandwidth and latency capabilities. AI agents could further amplify inference demand, making AMD’s hardware crucial for handling these complex, iterative tasks. AMD’s modular chiplet design offers significant advantages in managing the increased inference loads, positioning it as a strong investment in the evolving AI landscape.
Is It Worth Investing in Advanced Micro Devices Inc (NASDAQ: AMD) Right Now?
The price-to-earnings ratio for Advanced Micro Devices Inc (NASDAQ: AMD) is 108.65x, which is above its average ratio. Moreover, the 36-month beta value for AMD is 1.66. Analysts have varying opinions on the stock, with 30 analysts rating it as a “buy,” 7 as “overweight,” 14 as “hold,” and 1 as “sell.”
The public float for AMD is 1.61B and currently, short sellers hold a 3.68% of that float. On January 20, 2025, AMD’s average trading volume was 36.57M shares.
AMD’s Market Performance
AMD’s stock has seen a 4.67% increase for the week, with a -4.13% drop in the past month and a -22.21% fall in the past quarter. The volatility ratio for the week is 2.61%, and the volatility levels for the past 30 days are at 3.20% for Advanced Micro Devices Inc The simple moving average for the past 20 days is -0.36% for AMD’s stock, with a -19.13% simple moving average for the past 200 days.
Analysts’ Opinion of AMD
Loop Capital, on the other hand, stated in their research note that they expect to see AMD reach a price target of $175. The rating they have provided for AMD stocks is “Buy” according to the report published on January 14th, 2025.
TD Cowen gave a rating of “Buy” to AMD, setting the target price at $150 in the report published on January 13th of the current year.
AMD Trading at -7.66% 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 -46.56% of loss for the given period.
Volatility was left at 3.20%, however, over the last 30 days, the volatility rate increased by 2.61%, as shares sank -2.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.68% lower at present.
During the last 5 trading sessions, AMD rose by +4.67%, which changed the moving average for the period of 200-days by -32.03% in comparison to the 20-day moving average, which settled at $121.89. In addition, Advanced Micro Devices Inc saw 0.55% in overturn over a single year, with a tendency to cut further gains.
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 0.04 points at debt to capital in total, while cash flow to debt ratio is standing at 0.95. The debt to equity ratio resting at 0.04. 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 8.04. 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
To wrap up, the performance of Advanced Micro Devices Inc (AMD) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. 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.
