Advanced Micro Devices, or AMD, has had an outstanding year. Shares have risen 70% since the beginning of 2012. Investors continue to buy AMD stock despite the recent correction. Analysts maintain a positive outlook with a consensus target price suggesting a potential upside of 13.57%.
Important Points
1. AMD shares are up 70% year-to-date, making them one of the best performing semiconductor companies in 2023. Investors can still take advantage of the recent drop in stock prices despite a recent pullback.
2. AMD continues to be a favorite among institutional investors, as net institutional inflows have reached $10.18 billion in the last year. Q1 2022. Current institutional ownership is 68.9%. This indicates strong support from institutions for the stock.
3. Analysts have maintained a positive view of AMD. The consensus price target indicates a 13.57 % potential for growth. Recent upgrades and the majority of analyst ratings are buy or hold support this.
AMD Shares offer Potential Buying Opportunities
Advanced Micro Devices The company’s shares have risen by approximately 70% in the last year. Shares of the company are up 70% year-to-date. They reached $109 during the last trading session. The stock has recently undergone a correction and is down nearly 18% since its high in mid-June of $132.83. AMD analysts are still optimistic despite the recent pullback. A consensus price target suggests a potential upward movement of 13.57%.
The stock continues to be a popular investment for institutional investors, who continue to make significant purchases. Cathie Wood’s ARK Investment is one notable investor. It recently acquired 18,583 AMD. Institutional investors have invested $10.18 billion in total into AMD since the first quarter. State Street Corp holds the largest stake, at 4.039%. Institutional ownership currently stands at 68.9%.
AMD’s stock has not been significantly affected by recent reports about possible restrictions on chip imports into China, especially those that involve AI technology. AMD’s shares have been trading near flat this week, indicating that the market is relatively unfazed. It is possible that this is due to the belief that other regions would compensate for any business lost from China given the increased global demand for AI chips.
According to technical analysis, AMD’s share price has seen a significant uptrend this year. The recent pullback was steep but the stock has now retraced to its 50-day moving average and uptrend support. AMD formed a new high near the support of its uptrend. This shows that AMD’s overall uptrend continues. If the stock finds support between $105-110, a move beyond $110 could confirm a higher low on a higher timeframe. This makes $120 a real short-term goal.
Analyst ratings show a positive outlook for AMD. Of the 30 analysts that cover AMD, 20 rate the stock as Buy, while 9 recommend Hold and one gives it a Strong Purchase. The consensus analyst’s rating is Moderate Buy with a $125.06 price target, indicating an upside potential of 13.57%. Morgan Stanley raised its price target and rating from $97 to $148, signaling a further increase in optimism for AMD’s future.
AMD shares offer investors a great opportunity to buy despite their recent correction. The company has shown strong performance all year long, and institutional investors have demonstrated confidence in the stock market by making significant purchases. Analysts continue to have a positive outlook for AMD and predict an upside. AMD is well positioned to grow in the market, given the ongoing development of the semiconductor industry as well as the demand for AI chips around the world.
