AMD Declares CAD 0.30 Monthly Dividend, Analysts Predict Average Target Price of $183.96

The AMD Yield Shares Purpose ETF declared a CAD 0.30 per share dividend, payable on September 3. Analysts predict an average target price for AMD at $183.96, indicating potential growth. AMD holds an "Outperform" status with a brokerage recommendation of 2.2. The projected GF Value for AMD over the next year is estimated at $185.31, predicting a potential upside of 10.68% from the present price.

Advanced Micro Devices (AMD) has seen its stock perform exceptionally well over the past year, with a significant increase in market share and revenue. In response to this positive momentum, Purpose Investments has launched a new Yield Shares ETF focused on AMD, providing Canadian investors with a unique opportunity to earn passive income while maintaining long-term exposure to the company.

The AMD Yield Shares Purpose ETF, symbol YAMD, offers investors exposure to AMD's stock along with the potential for enhanced monthly yield. The ETF is designed to purchase and hold common stock and write covered call options and/or cash covered put options to enhance monthly income. This strategy allows investors to benefit from the growth potential of AMD while receiving regular dividend payments.

The ETF was listed on Cboe Canada under the symbol YAMD and joins the existing suite of Purpose ETFs already listed on the exchange. Investors can trade units of the ETF through their usual investment channels, including discount brokerage platforms and full-service dealers.

Analysts have been optimistic about AMD's prospects, with an average target price of $183.96 predicted for the stock. This suggests that there is potential for further growth in the coming months. Additionally, the projected GF Value for AMD over the next year is estimated at $185.31, indicating a potential upside of 10.68% from the current price. AMD currently holds an "Outperform" status with a brokerage recommendation of 2.2, further supporting the bullish sentiment surrounding the stock.

The new ETF comes at a time when AMD is continuing to see growth in its gaming chips, particularly in Japan, where market share has reached 45%. The company's Ryzen 7 7800X3D has received rave reviews and is considered one of the best gaming GPUs available. However, AMD faces challenges such as geopolitical tensions in Taiwan, which could impact its supply chain. Additionally, the company is competing with NVIDIA in the GPU market, where AMD's new chips sell for significantly less than NVIDIA's offerings, potentially limiting growth and margins.

Despite these challenges, AMD's strong performance over the past decade, driven by innovations such as the Ryzen CPU and the acquisition of Xilinx, has positioned it as a major player in the semiconductor industry. The launch of the AMD Yield Shares Purpose ETF provides investors with an attractive option to capitalize on the company's growth potential while receiving regular dividend payments.

References:

[1] https://www.businesswire.com/news/home/20250220490050/en/Cboe-Canada-Welcomes-Seven-New-Yield-Shares-ETFs-by-Purpose-Investments
[2] https://247wallst.com/forecasts/2025/08/19/advanced-micro-devices-inc-amd-price-prediction-and-forecast/