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AMD stock is up 2.5% in morning trading today (Monday), with many looking for an explanation.
Advanced Micro Devices Inc. (Nasdaq: AMD), a global semiconductor company, received a revised one-year price target from Matt Ramsay of Canaccord Genuity. His new price target for AMD is $17, which is 16% higher than AMD's current trading price of $14.26.
While the stock is trending higher because of that news, not all of the numbers support today's price climb…
AMD Stock Gets a Boost from Revised Price Prediction
Ramsay is one of 21 analysts that follow Advanced Micro Devices. He rates the company as a buy (2), but the average rating among 21 analysts is 2.6. That means that analysts rate the company halfway between a buy (2) and hold (3). The scale runs from a strong buy (1) to a strong sell (5).
But the fundamentals of AMD do not support such a high price target. The accelerated processing unit (APU) and graphics processing units (GPU) markets have stiff competition. That competition is one of the reasons Advanced Micro Devices has not turned a profit since 2011.
In fact, the company reported an earnings-per-share (EPS) loss three of the last four quarters, including a loss of $0.01 last quarter.
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On top of not being profitable, the consensus price target among Wall Street analysts is $11.92 for AMD. That's a loss of 16% from today's price.
The one-year price target is an aggregate target price that the 21 analysts following the company are projecting. The low one-year price target is $4.00.
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