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Advanced Micro Devices Inc. (AMD) traveled along a rocky path over the past six months, following impressive growth in the Fall of 2021. The semiconductor company was added to the WhaleWisdom Whale Index on February 15, 2022. While hedge funds were selling, AMD has outperformed the S&P 500. Over the past year, AMD has risen approximately 32.3% compared to the S&P’s gain of about 12.8%.

AMD is a global semiconductor company that develops central processing units (CPU), graphics processing units (GPU), chipsets, and other computing products. AMD has a Computing and Graphics segment and an Enterprise, Embedded, and Semi-Custom segment that appeals to business and consumer markets. AMD’s product line is well known for its use in desktop notebooks, server processors, professional graphics, and gaming applications. In February, AMD announced the completion of its acquisition of Xilinx, a technology and semiconductor company known for its programmable logic devices. This acquisition expands AMD’s portfolio and adds to its competitive presence in the information technology sector.

Mixed Results from Hedge Funds and Institutions

AMD saw hedge funds actively selling in the fourth quarter. The aggregate shares held by hedge funds decreased to about 158.5 million from 159.9 million, a change of approximately 0.9%. Of the hedge funds, 50 created new positions, 102 added to an existing holding, 28 exited, and 107 reduced their stakes. In contrast to hedge funds, institutions were buying and increased their aggregate holdings by about 1.9%, to approximately 830.9 million from 815.6 million. Also, long-term 13F metrics between 2002 and 2022 suggest that AMD continues to have investment potential.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise through 2023, with anticipated growth that could bring earnings to $4.04 by December 2022 and $4.91 by December 2023. Year-over-year estimated increases could bring approximately 29.1 billion in revenue by late 2023, up from an estimated 25.5 billion for December 2022.

(WhaleWisdom)

Analysts Keeping a Close Watch

AMD is receiving mixed attention from analysts, with more optimism for the company’s growth in 2022 and less certainty about market corrections in the coming year. Blayne Curtis of Barclays Investment Bank expressed concerns for estimated performance in 2023 due to recently higher levels of growth seen in many of the computing and technology company’s end markets. Curtis lowered his rating on AMD to equal-weight from overweight and reduced the price target to $115 from $148. Goldman Sachs removed AMD from its Conviction Buy List due to anticipated challenges over the next year. Analyst Anthony Cassamassino of Bank of America views AMD as a buy, optimism about AMD’s potential for market share gains and their recently completed merger with Xilinx.

Fair Outlook

AMD’s performance waned recently, but analysts’ continued earnings and revenue growth predictions are encouraging. Their products and services are likely to see increased demand related to growth across computing and graphics portfolios. The technology stock holds long-term potential for patient investors.

This entry was posted on Monday, April 4th, 2022 at 9:19 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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