Advanced Micro Devices Inc. shares rose Friday, following a Thursday pullback from 12-year highs, as another analyst slapped a $40 price target on the stock.
All year, AMD AMD, +4.10% shares have been setting fresh 12-year highs, rising to levels not seen since 2006, when the stock traded as high as $42.70 in March, only to crash down to $16.90 by late July of that year. On Thursday, the stock traded as high as $34.14, a 6% gain, but swung down midday to finish 5.4% lower at $30.48. Friday morning, however, shares rose 3.4% to $31.55.
Even with Thursday’s pullback, AMD shares are still up 15% for the week, compared to the PHLX Semiconductor Index’s SOX, +1.03% 1.2% gain. AMD’s stock price has been on an unprecedented run over the past 99 trading days, rallying more than 220%, and are up 201% for the year. That puts AMD’s stock run in the league with some of its best yearly stretches.
On Friday, Argus analyst Jim Kelleher hiked his price target on AMD shares to $40 from $23. On Thursday, FBN Securities initiated an outperform rating and a $40 price target on AMD’s stock. Shares closed above $30 for the first time in more than 12 years Tuesday after Rosenblatt Securities analyst Hans Mosesmann hiked his price target on AMD to $40 from $30.
On Thursday, AMD shares were the most actively traded on the S&P 500 index SPX, +0.07% — a common occurrence of late — at volume of more than 301 million shares with the second-most actively traded stock was Micron Technology Inc. MU, +1.26% with more than 59 million shares changing hands. For the past 52 weeks, AMD and Micron, on average, have been the third- and fourth-most active traded stocks at 66.2 million shares and 44.5 million shares, respectively, on the S&P 500 index.
Read: AMD short sellers gutted by ‘stealthy short squeeze’
Short positions in AMD’s stock reached record levels in April, and have since been decimated by the rally. And Thursday’s pullback offered little consolation.
“Shorts are up $160 million in mark-to-market profits [Thursday] on AMD’s over 4% price pullback, but that barely puts a dent in their $3.3 billion year-to-date mark-to-market loss,” Ihor Dusaniwsky, head of predictive analytics at financial technology and analytics firm S3 Partners, told MarketWatch in emailed comments.
Micron, on the other hand, finished up 4.5% at $43.62, following a punishing stretch that left the stock down 2.8% on the week despite Thursday’s gain. Micron shares were up 1.5% Friday.
The SOX index, which closed up 1.2% Thursday, tacked on another 1.3% gain Friday, while the S&P 500 rose less than 0.1% and the tech-heavy Nasdaq Composite Index COMP, +0.16% gained 0.2%. The SOX index, which had been up as much as 15% on the year, is now up 10% year to date, compared with an 8.6% gain in the S&P 500 and a 16.2% gain for the Nasdaq.
Nvidia Corp. NVDA, +2.34% shares, which closed up 1.2% Thursday after the chip maker announced new AI uses for its chips based on its Turing architecture, and were up 2.4% Friday.
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