Analysts Praise AMD Ahead of Q4 Earnings

The majority of analysts are bullish on the equity

Deputy Editor
Jan 25, 2021 at 3:06 PM
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Semiconductor manufacturer Advanced Micro Devices, Inc. (NASDAQ:AMD) is gearing up to report fourth-quarter earnings after the close tomorrow, Tuesday, Jan. 26, and analysts are tuning in. Specifically, RBC and UBS hit the equity with price-target hikes to $105 and $87, respectively. RBC also kept their "outperform" rating, while one analyst with the company said it would be unsurprising to see an earnings beat thanks to high GPU and CPU demand.

On the charts, AMD was last seen up 1.6% to trade at $94.27. After bouncing off the 80-day moving average during its recent pullback, the stock has been fighting back toward its Jan. 11 all-time high of $99.23. Year-over-year, the equity is up 87.3%.  

AMD Jan 25

On the analyst front, the majority were bullish on the security coming into today. In fact, 10 of the 14 in coverage rated AMD a "strong buy." Meanwhile, the stock's 12-month consensus price target of $93.87 is a slim 0.4% discount to current levels.

The options pits are leaning bullish as well. This is per the security's 50-day call/put volume ratio of 1.73 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 91% of readings from the past year. This means long calls are being picked up at a faster-than-usual clip.  

A look at AMD's post-earnings past shows five negative earnings reactions in the past two years, including a 10.1% drop in July of 2019. On the other hand, the equity enjoyed 12.5% surge in July. This time around, the options pits are pricing in a 12.1% move, regardless of direction, which is much larger than the 7.4% move averaged during these past eight post-earnings sessions. 


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