Advanced Micro Devices, Inc. $AMD Stock: Formuepleje A S Cuts Stake

Key Points

• Formuepleje A S reduced its AMD stake by 18.3% in the third quarter, selling 1,536 shares and retaining 6,853 shares valued at approximately $4.19 million.
• Other major institutions, including BlackRock and State Street, increased their positions, while institutional investors collectively own 71.34% of AMD.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $603.51 price target, though AMD faces risks from its premium valuation, rising yields and concerns about a potential slowdown in AI infrastructure spending.

Formuepleje A S lowered its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 18.3% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 6,853 shares of the semiconductor manufacturer's stock after selling 1,536 shares during the quarter. Formuepleje A S's holdings in Advanced Micro Devices were worth $4,192,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. BlackRock Inc. boosted its position in Advanced Micro Devices by 3.1% in the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock valued at $87,311,650,000 after buying an additional 4,535,126 shares during the last quarter. State Street Corp increased its holdings in Advanced Micro Devices by 2.9% in the second quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer's stock valued at $46,606,266,000 after purchasing an additional 2,149,563 shares during the last quarter. Invesco Ltd. raised its position in shares of Advanced Micro Devices by 15.9% in the 4th quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer's stock valued at $3,313,758,000 after acquiring an additional 2,124,867 shares during the period. Bank of America Corp DE bought a new stake in Advanced Micro Devices in the second quarter valued at approximately $7,022,226,000. Finally, Jennison Associates LLC grew its holdings in shares of Advanced Micro Devices by 5.8% in the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer's stock valued at $5,793,388,000 after buying an additional 545,575 shares during the period. Institutional investors and hedge funds own 71.34% of the company's stock.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s long-term AI opportunity remains a key bullish argument. Analysts point to strong demand for data-center processors and accelerators, improving AI-inference software, and the potential for agentic AI to drive substantial future compute demand. AMD’s Helion rack-scale architecture, developed with an open and modular approach, could broaden its role in AI infrastructure. What Does Advanced Micro Devices AMD Helion Mean For Its AI Ambitions?
• Positive Sentiment: A credit-support agreement connected to Fermi Inc.’s 222-megawatt Texas power lease for Project Matador may help advance AI data-center capacity and could support AMD’s ecosystem and infrastructure ambitions, although related liquidity and lease risks remain. AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle
• Neutral Sentiment: TSMC reported record profits and described AI-chip demand as extremely robust, supporting the underlying demand backdrop for AMD. However, TSMC’s shares also weakened, showing that strong operating results are not currently overcoming broader risk aversion in chip stocks. TSMC Posts Record Profit Amid Extremely Robust Demand for AI Chips
• Negative Sentiment: Rising Treasury yields are increasing the discount rate applied to AMD’s future earnings and raising borrowing costs for AI customers. Fears that hyperscalers and other infrastructure buyers may struggle to finance planned projects have triggered a broad semiconductor sell-off. Rate Pressure vs. AI Demand
• Negative Sentiment: AMD’s sharp year-to-date advance and premium valuation have increased profit-taking risk. Reports also highlight extensive insider selling, with no reported open-market purchases in the cited six-month period, potentially reinforcing investor concerns about valuation and expectations. AMD Stock Surges 183% YTD: Time to Hold or Exit?
• Negative Sentiment: Concerns about an AI-spending reset intensified after weakness in AI-financing markets, including a sell-off in CoreWeave bonds. Investors are questioning whether AI demand, competitive pressure and infrastructure spending can justify current chip valuations. AMD Stock Takes a Bigger Hit as Cracks Emerge in the AI Trade

Analysts Set New Price Targets

A number of research firms have issued reports on AMD. Argus boosted their target price on Advanced Micro Devices from $450.00 to $625.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. William Blair reiterated a "market perform" rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Melius Research set a $660.00 price target on Advanced Micro Devices in a report on Friday, July 24th. Jefferies Financial Group set a $650.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Finally, Stifel Nicolaus lifted their price target on shares of Advanced Micro Devices from $635.00 to $700.00 and gave the company a "buy" rating in a research note on Monday, October 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and a consensus target price of $603.51.

Advanced Micro Devices Trading Down 1.5%

Shares of Advanced Micro Devices stock opened at $562.23 on Friday. Advanced Micro Devices, Inc. has a 1 year low of $188.22 and a 1 year high of $658.52. The company has a market capitalization of $917.82 billion, a price-to-earnings ratio of 144.53, a P/E/G ratio of 5.90 and a beta of 2.45. The business has a fifty day simple moving average of $536.11 and a two-hundred day simple moving average of $471.82. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued 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. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. During the same period in the previous year, the company earned $0.48 EPS. The business's revenue for the quarter was up 50.1% compared to the same quarter last year. Research analysts forecast that Advanced Micro Devices, Inc. will post 6.45 EPS for the current year.

Insider Activity at Advanced Micro Devices

In related 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 transaction of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares in the company, valued at $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 available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 25,000 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.79, for a total value of $12,669,750.00. Following the sale, the chief executive officer owned 74,211 shares in the company, valued at approximately $37,609,392.69. This trade represents a 25.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 213,838 shares of company stock worth $105,533,836 in the last ninety days. Insiders own 0.50% of the company's stock.

About Advanced Micro Devices

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.