AMD's Stock Soars Toward 5-month High As Analysts Boost Price Targets After Upbeat Results

Shares of Advanced Micro Devices Inc. soared 9% in premarket trade Wednesday, putting them on track to open at a 5-month high, after the chip maker reported a surprise second-quarter profit and revenue that rose above forecasts. That prompted no less than 10 of the 31 analysts surveyed by FactSet to raise their price targets. The average target price has increased 11% to $13.78, which is 10% below where the stock is currently trading ahead of the open. The average rating remains hold. Analyst Kevin Cassidy at Stifel Nicolaus raised his target to $13 from $11, saying he was "impressed" with new product revenue upside, but said he was keeping the rating at hold until gross margin expansion is more evident. Susquehanna Financial's Christopher Rolland raised his target to $15 from $12, but stayed at a neutral rating. "While we are incrementally more constructive on the new products' prospects, we question the shorter-term benefit received from the initial Ryzen channel build with PC OEMs and cryptocurrency-driven GPU demand," Rolland wrote in a note to clients. The stock had run up 24.4% year to date through Tuesday, while the PHLX Semiconductor Index had rallied 21.6% and the S&P 500 had gained 10.6%.