Advanced Micro Devices: S&P Intraday Gainer

NEW YORK ( TheStreet) -- Advanced Micro Devices ( AMD) was the best-performing stock in the S&P 500 intraday Thursday.

The S&P 500 rose 3.55 points, or 0.25%, to 1,397.83 in Thursday morning trading.

Shares of Advanced Micro Devices rose 5.41% to $8.18. The stock was upgraded to buy from hold by Jefferies analysts on Wednesday and the price target was raised to $10.50 from $7.

"AMD offers one of the best risk/reward ratios in semis," Jefferies analysts wrote in a report. "On the risk-side, AMD is trading near its '08 EV/S, when its interest coverage broke 1.0 and net debt was ~$4 billion. On the reward side, AMD's APU delivers a unique MPU + high-end graphics product to the low end and mainstream mobile markets, driving share gains in both segments. We think share gains continue and improving manufacturing yields could translate to upside surprises."

Advanced Micro Devices has an estimated price-to-earnings ratio for next year of 9.59 times; the average for semiconductor companies is 15.46. For comparison, Xilinx ( XLNX) and Nvidia ( NVDA) both have higher forward P/Es of 18.14 and 13.03, respectively.

Fourteen of the 33 analysts who cover Advanced Micro Devices rated it buy. Thirteen analysts gave the stock a hold rating and six rated it sell.

TheStreet Ratings gives Advanced Micro Devices a C grade and a hold rating. The stock has risen 52.04% year to date.

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-- Written by Alexandra Zendrian

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