Advanced Micro Devices, Inc. $AMD Stake Decreased by Davis Capital Management

Key Points

• Davis Capital Management cut its AMD stake by 97.6% in the third quarter, selling 4,953 shares and retaining 123 shares valued at approximately $76,000.
• AMD reported quarterly revenue of $11.54 billion and earnings of $1.66 per share, exceeding analyst expectations, while revenue rose 50.1% year over year.
• Despite a consensus “Moderate Buy” rating and an average price target of $585.26, AMD faces valuation concerns and investor caution following a sharp rally, insider selling, and broader pressure on semiconductor stocks.

Davis Capital Management lessened its holdings in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 97.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 123 shares of the semiconductor manufacturer's stock after selling 4,953 shares during the period. Davis Capital Management's holdings in Advanced Micro Devices were worth $76,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of the business. MJT & Associates Financial Advisory Group Inc. acquired a new position in shares of Advanced Micro Devices during the 3rd quarter worth $29,000. JNBA Financial Advisors lifted its stake in shares of Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock valued at $30,000 after purchasing an additional 30 shares during the period. Bullseye Investment Management LLC purchased a new stake in Advanced Micro Devices during the second quarter worth about $44,000. Luminist Capital LLC purchased a new stake in Advanced Micro Devices during the second quarter worth about $46,000. Finally, BOK Financial Private Wealth Inc. acquired a new position in Advanced Micro Devices during the second quarter worth about $53,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Price Performance

AMD stock traded down $25.18 during trading on Thursday, hitting $620.68. The stock had a trading volume of 23,402,461 shares, compared to its average volume of 32,602,393. The stock has a market cap of $1.01 trillion, a price-to-earnings ratio of 159.56, a price-to-earnings-growth ratio of 6.73 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The company's 50 day moving average price is $523.60 and its two-hundred day moving average price is $455.44. Advanced Micro Devices, Inc. has a 1-year low of $188.22 and a 1-year high of $658.52.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping analysts' consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company's quarterly revenue was up 50.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.48 earnings per share. On average, sell-side analysts forecast that Advanced Micro Devices, Inc. will post 6.43 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Roth Capital increased their target price on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a "buy" rating in a report on Friday, July 24th. Melius Research set a $660.00 target price on Advanced Micro Devices in a report on Friday, July 24th. William Blair reaffirmed a "market perform" rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Zacks Research lowered shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 1st. Finally, Raymond James Financial raised shares of Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and increased their price objective for the company from $565.00 to $641.00 in a research note on Tuesday, August 25th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $585.26.

Advanced Micro Devices News Roundup

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD’s data-center revenue reportedly increased 107% year over year to $6.7 billion, underscoring strong demand for its AI accelerators and server processors. Global AI infrastructure spending is also expected to remain substantial. AMD Stock: Drops Despite Record Revenue and Surging AI Data Center Demand
• Positive Sentiment: TSMC reported record quarterly revenue, up 50% year over year, signaling that demand for advanced chips used by AMD and other AI companies remains robust. Nvidia, AMD, Intel Stocks Despite Record AI Demand
• Positive Sentiment: CEO Lisa Su’s meetings with Samsung and SK Hynix could improve AMD’s access to memory and manufacturing capacity as AI supply constraints persist. AMD CEO Says Continues to Explore Foundry Partnership With Samsung
• Positive Sentiment: Analysts remain constructive: BNP Paribas identified further upside from AMD’s CPU, AI accelerator and inference-chip opportunities, while Citi recently raised its price target. AMD Stock Isn’t Undervalued, but Wall Street May Be Underestimating a Key Opportunity
• Neutral Sentiment: AMD scheduled its third-quarter earnings report for November 3. Investors may remain cautious ahead of the release, which will provide an important test of AI demand, supply expansion and forward guidance. AMD Stock Slips Despite Setting a Date for Q3 Earnings
• Negative Sentiment: Higher bond yields and oil prices are pressuring richly valued growth and AI stocks, prompting investors to rotate out of semiconductor names across the sector. Why Are Intel and AMD Stocks Plunging on Thursday?
• Negative Sentiment: AMD’s valuation leaves little room for execution setbacks after its sharp rally. Concerns include whether future AI commitments will translate into repeat deployments, cash flow and sustainable margins. AMD’s Valuation Is Starting to Ruffle Feathers on Wall Street
• Negative Sentiment: Reported insider activity shows substantial selling and no open-market purchases over the past six months, adding to investor caution even though such sales may reflect scheduled diversification.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark Papermaster sold 28,811 shares of the business's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the transaction, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. The trade was a 2.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total value of $1,462,649.17. Following the transaction, the senior vice president directly owned 26,623 shares in the company, valued at approximately $13,010,393.87. This represents a 10.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 213,838 shares of company stock worth $105,533,836 in the last three months. 0.50% of the stock is currently owned by company insiders.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD's product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.

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