Advanced Micro Devices, Inc. $AMD Stock: Avity Investment Management Inc. Raises Stake

Key Points

• Avity Investment Management increased its AMD stake by 70.2% in the third quarter, reaching 73,065 shares valued at approximately $44.7 million. Institutional investors collectively own 71.34% of AMD.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $585.26; Stifel raised its target to $700.
• AMD benefits from strong AI infrastructure demand and potential Samsung manufacturing and memory partnerships, but its elevated valuation—about 125 times free cash flow—and upcoming earnings report present significant execution risks.

Avity Investment Management Inc. raised its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 70.2% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 73,065 shares of the semiconductor manufacturer's stock after acquiring an additional 30,128 shares during the quarter. Advanced Micro Devices comprises approximately 2.7% of Avity Investment Management Inc.'s investment portfolio, making the stock its 14th biggest holding. Avity Investment Management Inc.'s holdings in Advanced Micro Devices were worth $44,698,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in AMD. MJT & Associates Financial Advisory Group Inc. acquired a new stake in shares of Advanced Micro Devices during the 3rd quarter worth approximately $29,000. JNBA Financial Advisors raised its position in shares of Advanced Micro Devices by 142.9% during the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 30 shares during the period. Bullseye Investment Management LLC bought a new position in Advanced Micro Devices in the second quarter valued at approximately $44,000. Luminist Capital LLC acquired a new position in Advanced Micro Devices in the 2nd quarter worth $46,000. Finally, BOK Financial Private Wealth Inc. bought a new position in shares of Advanced Micro Devices during the second quarter worth about $53,000. Institutional investors and hedge funds own 71.34% of the company's stock.

Analysts Set New Price Targets

Several brokerages have commented on AMD. Stifel Nicolaus boosted their price target on shares of Advanced Micro Devices from $635.00 to $700.00 and gave the stock a "buy" rating in a research report on Monday, October 5th. Zacks Research cut shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 1st. Weiss Ratings raised Advanced Micro Devices from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday. Sanford C. Bernstein reiterated an "outperform" rating and issued a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Roth Capital raised their price objective on Advanced Micro Devices from $500.00 to $650.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $585.26.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AI infrastructure demand remains strong. TSMC reported record quarterly revenue, while Samsung also posted exceptionally strong results tied to AI memory demand—supportive read-throughs for AMD’s data-center and accelerator businesses. TSMC quarterly results
• Positive Sentiment: AMD is reportedly exploring a foundry and memory partnership with Samsung, potentially improving access to critical manufacturing and high-bandwidth memory as AI chip supply remains constrained. AMD Samsung partnership
• Positive Sentiment: The partnership with Core Scientific highlights potential demand for AMD-powered AI data centers, while analysts and bullish commentators continue to see upside from CPUs, accelerators and inference chips. Core Scientific and AMD partnership
• Neutral Sentiment: AMD scheduled its third-quarter earnings release for November 3. The report will be an important test of whether accelerating AI demand can justify the stock’s elevated valuation. AMD earnings date
• Negative Sentiment: Valuation concerns are dominating sentiment. AMD was cited as trading near 125 times free cash flow, far above Broadcom’s roughly 46 times, leaving little room for execution missteps or slower growth. AMD versus Broadcom valuation
• Negative Sentiment: A broader market selloff, rising Treasury yields and higher oil prices pressured richly valued technology shares. ARK Invest also sold approximately $14 million of AMD stock, adding a modest negative sentiment signal. ARK Invest AMD sale

Insider Activity at Advanced Micro Devices

In other news, EVP Paul Grasby sold 15,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the sale, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. This trade represents a 11.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Forrest Norrod sold 17,261 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $503.05, for a total value of $8,683,146.05. Following the transaction, the executive vice president directly owned 363,317 shares in the company, valued at approximately $182,766,616.85. This trade represents a 4.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is currently owned by insiders.

Advanced Micro Devices Trading Down 2.0%

AMD opened at $608.10 on Friday. The stock has a market cap of $992.71 billion, a PE ratio of 156.32, a price-to-earnings-growth ratio of 6.39 and a beta of 2.45. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. The company has a fifty day moving average of $528.95 and a 200-day moving average of $459.44. Advanced Micro Devices, Inc. has a twelve month low of $188.22 and a twelve month high of $658.52.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. The company had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The firm's revenue for the quarter was up 50.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.48 EPS. On average, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.48 EPS for the current year.

Advanced Micro Devices 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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