No less than seven analysts lifted their price targets
The shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) are up 4.5% to trade at $89.07 this morning after its first-quarter earnings and revenue beat analysts estimates. The firm also lifted its 2021 revenue growth forecast by 50% from its prior 37% growth estimate, noting strong demand from data centers and PCs.
Several analysts rushed in with bull notes. In fact, no less than seven members of the brokerage bunch lifted their price targets, the highest coming from Susquehanna to $125. Summit Insights Group, on the other hand, slashed its rating to "hold," as it sees performance starting to level out in the second half of the year as the slowing pandemic weakens PC market growth.
Despite some recently rocky price action, the majority of analysts in coverage were optimistic on AMD prior to its earnings report. Of the 27 in coverage, 18 called the equity a "buy" or better, while seven said "hold," and two said "strong sell." Plus, the 12-month consensus price target of $104.44 stood at a 17.8% premium to Tuesday's close.
Short interest has been inching lower, down 1.1% in the last two reporting periods, but a further unwinding of optimism could put more wind at the security's back. Especially considering the 82.7 million shares sold short make up a solid 7.7% of AMD's available float.