Semiconductor behemoth Advanced Micro Devices Inc (NASDAQ:AMD) is charging 4.5% higher to trade at $477.06 this morning, enjoying a lift after landing an upgrade out of Raymond James. The firm upped its position to "strong buy" from "outperform" and hiked its price target to $641 from $565, citing strong server CPU market growth and AMD's strong "combination of direct earnings leverage, datacenter positioning, and market-share gains."
Analysts are extremely bullish toward the equity, with 39 of the 46 in coverage sporting "buy" or "strong buy" recommendation. The stock's average 12-month price target of $600.42 is also elevated, meaning brokerage firms are betting big on AMD's future.
Options traders are also optimistic. Advanced Micro Devices stock's Schaeffer's put/call open interest ratio (SOIR) of 1.16 ranks higher than 90% of readings from the past 12 months, showing short-term options traders are more call-heavy than usual.
Plus, options are looking affordable, per AMD's Schaeffer's Volatility Index (SVI) of 53%, which ranks in the 28th percentile of its annual range. Lastly, the stock's Schaeffer's Volatility Scorecard (SVS) of 83 out of 100 indicates it has consistently exceeded expectations during the past year.
On the charts, AMD has been consolidating below the round $500 area, extending its pullback from its last-June record high of $584.73. The ascending 100-day moving average looks to be emerging as support, though the equity still sports an 18.3% quarter-to-date deficit.
