Advanced Micro Devices(NASDAQ:AMD) stock is up over 9% today after the chipmaker reported first-quarter results that handily beat analysts’ expectations.
AMD reportedQ1 earnings per share(EPS) of $1.13 versus 91 cents that Wall Street expected. The company’s revenue totaled $5.89 billion, compared to estimates for $5.52. Looking ahead, AMD forecast $6.5 billion in sales in the current second quarter. This also came in ahead of analyst expectations of $6.38 billion.
Every one of AMD’s individual lines of business reported double-digit growth during Q1. In particular, AMD said it benefitted from strong sales of its server chips that primarily compete against Intel(NASDAQ:INTC). AMD has also gained traction from sales of microchips used in personal computers (PCs), which rose 33% on an annual basis, and cloud server sales, which increased 88% to $2.5 billion.
AMD also said it completed its $35 billion acquisition of Xilinx in February of this year, and that it bought back $1.9 billion of its own stock during the first quarter. Despite the success, AMD stock has struggled so far this year, having fallen nearly 40% amid a steep selloff in technology stocks.
But where do analysts see AMD stock headed now following the blockbuster Q1 results? Here are three analyst price predictions.
Price Predictions
- Jefferies Financial Group has a“buy” rating on AMD stock and a $147 price target.
- UBS Group has a “neutral” rating on shares of AMD and a $110 price target, which would be 21% higher than where the stock finished trading in New York yesterday.
- KeyBanc holds an“overweight” rating on AMD stock along with a $150 price target. That would be 65% higher than where the stock currently trades.
What’s Next for Advanced Micro Devices
Among 33 professional analysts who cover AMD stock, the median price target is currently $147, which would be 55% higher than current levels. Many analyst price targets are likely to be raised in coming days following the semiconductor company’s exceptionally strong first-quarter results.
That said, investors should remember that the technology sector continues to face multiple headwinds, especially with the Federal Reserve expected to raise interest rates by half a percentage point later today.
