Analysts Eye Fresh Highs for AMD as Demand Grows

The equity sports a roughly 73% year-over-year lead

Digital Content Manager
Jan 19, 2021 at 10:33 AM
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The shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) are sticking close to  breakeven this morning, last seen down 0.1% at $88.06, after Jefferies and Susquehanna raised the semiconductor concern's price target to $110 and $105, respectively. The latter of the two brokerage firms noted higher demand from PC and gaming, as well as further laptop strength in the fourth quarter of 2020, as the shift to remote work continues to drive a need for at-home computers.

On the charts, the security has been carving a channel of higher highs over the past year. Shares are just now cooling off from a Jan. 11 all-time high of $99.23, though the stock's 80-day moving average looks poised to contain this pullback. Year-over-year, AMD sports a 73.4% lead.

Analysts were already optimistic towards Advanced Micro Devices stock coming into today. Of the 25 in coverage, 15 carried a "strong buy" rating, while 10 called it a tepid "hold" or worse. Plus, the stock's 12-month consensus target price of $93.34 is a 5.8% premium to current levels.

The options pits lean bullish as well, with a strong appetite for calls. This is per the equity's 50-day call/put volume ratio of 3.59 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 88% of readings from the past year. This means calls are being picked up at a quicker-than-usual pace.  

For those looking to weigh in on AMD's next move with options, now could be the perfect opportunity. The equity's Schaeffer's Volatility Index (SVI) of 35% sits in the relatively low 18th percentile of its annual range. In simpler terms, options players are pricing in low volatility expectations right now.

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