Advanced Micro Devices, Inc. $AMD Stock: Franchise GP Ltd Reduces Stake

Key Points

• Franchise GP Ltd cut its AMD stake by 27.6% in the third quarter, selling 10,330 shares and retaining 27,040 shares valued at $16.5 million. Institutional investors still own a substantial 71.34% of AMD.
• AMD insiders sold 213,838 shares worth approximately $105.5 million over the past 90 days, including CEO Lisa Su’s $35.5 million sale under a pre-arranged Rule 10b5-1 plan.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and average price target of $603.51, but investor concerns include AMD’s elevated valuation, AI-spending sustainability, financing risks and a broader semiconductor selloff.

Franchise GP Ltd lessened its holdings in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 27.6% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 27,040 shares of the semiconductor manufacturer's stock after selling 10,330 shares during the period. Advanced Micro Devices comprises 7.0% of Franchise GP Ltd's holdings, making the stock its 5th biggest holding. Franchise GP Ltd's holdings in Advanced Micro Devices were worth $16,542,000 as of its most recent SEC filing.

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

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Arete raised its AMD price target to $612 from $540, while recent commentary highlighted the company’s expanding data-center business, AI accelerator opportunity and open Helion rack-scale architecture. Arete Adjusts Price Target on Advanced Micro Devices
• Positive Sentiment: AMD’s credit-support agreement for Fermi’s Texas data-center power lease is viewed as a potential AI infrastructure catalyst, although Fermi still faces liquidity and lease-related risks. AMD's Support Could Help Fermi Stock
• Neutral Sentiment: ETF investors were net sellers of AMD on October 14, adding to short-term trading pressure but offering little insight into the company’s operating outlook. ETFs Are Net Sellers of AMD
• Negative Sentiment: A broad semiconductor selloff intensified after a Qualcomm jury verdict, with Arm, AMD and Taiwan Semiconductor declining together. Investors are questioning whether AI infrastructure spending can sustain current expectations, particularly as elevated interest rates pressure richly valued growth stocks. Arm and AMD Fall as Qualcomm Verdict Adds to Chip Selloff
• Negative Sentiment: Analysts and investors are also reassessing AMD’s elevated valuation, AI financing risks and the sustainability of extremely high data-center spending. Reports of widespread insider selling may further weigh on sentiment, even though institutional ownership remains substantial. AMD Slides as Chip Selloff Continues

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 70,000 shares of the company's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.80, for a total transaction of $35,476,000.00. Following the sale, the chief executive officer owned 3,032,156 shares of the company's stock, valued at approximately $1,536,696,660.80. This represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president owned 160,979 shares of the company's stock, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 213,838 shares of company stock worth $105,533,836. Company insiders own 0.50% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently issued reports on AMD shares. Argus upped their price target on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. William Blair reissued a "market perform" rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Wells Fargo & Company boosted their price objective on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. Citigroup upped their target price on Advanced Micro Devices from $575.00 to $800.00 and gave the stock a "buy" rating in a report on Tuesday, October 6th. Finally, Roth Capital upped their target price on Advanced Micro Devices from $500.00 to $650.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and a consensus price target of $603.51.

Advanced Micro Devices Price Performance

Shares of NASDAQ:AMD opened at $528.75 on Friday. The firm has a market cap of $863.17 billion, a PE ratio of 135.93, a price-to-earnings-growth ratio of 5.81 and a beta of 2.45. The firm's fifty day moving average is $537.02 and its 200-day moving average is $472.22. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. Advanced Micro Devices, Inc. has a 52 week low of $188.22 and a 52 week 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, topping the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%. The business's quarterly revenue was up 50.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.48 EPS. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.45 earnings per share for the current year.

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.

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