AMD ETF Announces Monthly Dividend, Analysts Predict Downside Despite "Outperform" Status

AMD's related ETF, Yield Shares Purpose ETF, has declared a monthly dividend of CAD 0.25 per share. Analysts predict a potential downside for AMD's stock price despite an "Outperform" status, with an average target of $146.01 and a consensus average target of $158.76. GuruFocus' GF Value estimates a moderate upside for AMD shares over the next year, with a potential value of $167.94 and a potential upside of 5.78%.

Advanced Micro Devices (AMD) has seen its stock price surge in recent months, driven by strong performance in the data center and AI segments. However, analysts are predicting a potential downside for the stock despite an "Outperform" status. The Yield Shares Purpose ETF, which is related to AMD, has declared a monthly dividend of CAD 0.25 per share, adding to the investor interest in the stock.

Analyst Predictions

Several analysts have raised concerns about AMD's stock price potential. A Citi analyst, Christopher Danely, increased his price target for AMD shares from $145 to $165, maintaining a Neutral rating. Despite this optimism, Citi cautions that market expectations for AMD might be overly ambitious [3]. The average target price for AMD, as per 41 analysts, is $145.52, with a high estimate of $200.00 and a low estimate of $95.00 [3]. This implies a downside of 9.28% from the current price of $160.41.

GuruFocus' GF Value estimates a moderate upside for AMD shares over the next year, with a potential value of $167.94 and a potential upside of 5.78% [3]. Despite this positive outlook, the average brokerage recommendation from 53 firms is currently 2.1, indicating an "Outperform" status [3].

Market Performance and Earnings

AMD reported a 36% year-over-year increase in first-quarter revenue, reaching $7.4 billion, driven by strong growth in data center and client segments. The company achieved a 55% increase in net income, supported by a higher percentage of data center product sales and a richer Ryzen processor mix [3]. The data center segment revenue grew by 57% year over year, with significant contributions from EPYC CPU and Instinct AI accelerator sales [3]. AMD's client revenue increased by 68% year over year, marking the fifth consecutive quarter of revenue share gains [3].

Conclusion

While AMD's strong performance in the data center and AI segments has driven investor interest, analysts are predicting a potential downside for the stock. The "Outperform" status from brokerage firms suggests a positive outlook, but the potential downside risk should be considered by investors. The Yield Shares Purpose ETF's monthly dividend of CAD 0.25 per share adds to the attraction of the stock. However, investors should closely monitor AMD's earnings and analyst reports to make informed decisions.

References

[1] https://247wallst.com/companies/intc/page/7/?utm_campaign=newsbreak&utm_content=intc&utm_medium=referral&utm_source=newsbreak&wsrlui=t11588533
[2] https://www.investing.com/news/analyst-ratings/amd-stock-price-target-raised-to-175-from-130-at-bofa-on-ai-growth-93CH-4136327
[3] https://www.gurufocus.com/news/2987015/amd-stock-target-raised-to-165-by-citi-analyst-amd-stock-news