Advanced Micro Devices, Inc. $AMD Stock: Sterling Capital Management LLC Lowers Stake

Key Points

• Sterling Capital Management reduced its AMD stake by 4.2% in the third quarter, selling 2,157 shares and retaining 49,466 shares valued at approximately $30.3 million. Institutional investors collectively own 71.34% of AMD.
• Analyst sentiment remains broadly positive, with AMD holding a “Moderate Buy” consensus rating and an average price target of $606.76. Expectations for AI accelerator demand, hyperscaler contracts and data-center expansion are key drivers of the bullish outlook.
• Valuation and execution risks remain elevated: AMD trades at a reported P/E ratio of 132.85, faces competition from Nvidia and macroeconomic pressures, while insiders sold approximately $114.9 million of stock during the last quarter.

Sterling Capital Management LLC cut its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 4.2% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 49,466 shares of the semiconductor manufacturer's stock after selling 2,157 shares during the period. Sterling Capital Management LLC's holdings in Advanced Micro Devices were worth $30,261,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in AMD. MJT & Associates Financial Advisory Group Inc. acquired a new position in shares of Advanced Micro Devices during the third quarter valued at $29,000. JNBA Financial Advisors increased its holdings in shares of Advanced Micro Devices by 142.9% in the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after acquiring an additional 30 shares during the period. Downshift Financial LLC increased its holdings in shares of Advanced Micro Devices by 850.0% in the 3rd quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer's stock worth $35,000 after acquiring an additional 51 shares during the period. Sawyer & Company Inc acquired a new stake in shares of Advanced Micro Devices in the 3rd quarter worth about $37,000. Finally, Bullseye Investment Management LLC bought a new stake in Advanced Micro Devices in the 2nd quarter valued at about $44,000. 71.34% of the stock is currently owned by institutional investors.

Key Advanced Micro Devices News

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

• Positive Sentiment: Analyst support is helping sentiment. AMD received an analyst upgrade, while Erste Group raised its FY2027 earnings estimate to $15.05 per share from $14.80. The company’s long-term earnings outlook is being supported by expectations for continued AI accelerator demand. AMD Stock Jumps Following Analyst Upgrade
• Positive Sentiment: AI growth remains the core bullish argument. Articles point to AMD’s hyperscaler contracts, data-center expansion and expected product cycles as potential drivers of substantial future revenue growth. AMD recently reported 50.1% year-over-year revenue growth, and analysts continue to debate whether its AI opportunity is being underestimated. AMD’s Potential May Be Underestimated
• Neutral Sentiment: Today’s strength follows a broad technology rebound. AMD and Intel recovered after a sharp semiconductor sell-off, while AMD also contributed to gains in the Invesco QQQ Trust. This suggests some of the buying reflects sector rotation and short-term dip buying rather than a change in AMD’s fundamentals. Why AMD and Intel Stocks Are Gaining
• Negative Sentiment: Valuation and execution risks remain significant. AMD has already risen sharply this year, and its high earnings multiple leaves little room for disappointment. Investors are focused on whether upcoming earnings and new AI products can validate the expectations embedded in the stock. AMD Stock Price Prediction
• Negative Sentiment: Competitive and macroeconomic pressures could limit upside. Nvidia is expanding into CPU systems traditionally dominated by AMD and Intel, while higher oil prices, interest rates and questions about AI infrastructure spending are weighing on the broader semiconductor trade. Nvidia Enters the CPU Market

Analyst Upgrades and Downgrades

AMD has been the subject of a number of analyst reports. Rosenblatt Securities reissued a "buy" rating and set a $700.00 target price on shares of Advanced Micro Devices in a research note on Tuesday, September 29th. Benchmark upped their target price on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. Cantor Fitzgerald restated an "overweight" rating on shares of Advanced Micro Devices in a research note on Monday, October 5th. Zacks Research cut Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 1st. Finally, UBS Group reaffirmed an "overweight" rating on shares of Advanced Micro Devices in a report on Friday, July 24th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $606.76.

Insider Activity

In related news, EVP Mark Papermaster sold 28,811 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the completion of the sale, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the sale, the senior vice president directly owned 26,623 shares in the company, valued at approximately $13,010,393.87. This trade represents a 10.11% 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. In the last quarter, insiders have sold 231,100 shares of company stock worth $114,867,400. 0.50% of the stock is owned by company insiders.

Advanced Micro Devices Stock Performance

Shares of AMD opened at $516.79 on Friday. The firm's 50 day moving average is $541.54 and its 200-day moving average is $483.45. The stock has a market capitalization of $843.64 billion, a P/E ratio of 132.85, a P/E/G ratio of 5.30 and a beta of 2.45. 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, Inc. has a 12-month low of $188.22 and a 12-month high of $658.52.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released 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 business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The business's quarterly revenue was up 50.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.48 earnings per share. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.50 EPS for the current fiscal year.

Advanced Micro Devices Profile

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

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

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