Arista Wealth Management LLC Trims Position in Advanced Micro Devices, Inc. $AMD

Key Points

• Arista Wealth Management cut its AMD position by 35.6% in the second quarter, selling 2,557 shares and retaining 4,630 shares valued at approximately $2.69 million.
• AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, while adjusted earnings of $1.66 per share exceeded expectations. Data Center revenue more than doubled, supporting the company’s AI growth outlook.
• Despite strong results and a consensus “Moderate Buy” rating, AMD faces elevated expectations, Nvidia competition and a high valuation of about 124 times earnings; the stock opened at $483.36, down 1.2%.

Arista Wealth Management LLC decreased its position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 35.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 4,630 shares of the semiconductor manufacturer's stock after selling 2,557 shares during the quarter. Arista Wealth Management LLC's holdings in Advanced Micro Devices were worth $2,690,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Joseph Group Capital Management purchased a new position in Advanced Micro Devices during the fourth quarter worth about $25,000. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC acquired a new stake in shares of Advanced Micro Devices during the 4th quarter worth approximately $27,000. Basepoint Wealth LLC acquired a new stake in shares of Advanced Micro Devices during the 4th quarter worth approximately $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices during the 1st quarter valued at approximately $31,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AMD agreed to acquire Toronto-based AI-inference chip startup Taalas for an undisclosed amount. Taalas develops specialized silicon designed to reduce computing and memory bottlenecks, and AMD plans to integrate the technology with its Instinct GPUs. The deal could improve AMD’s inference performance and strengthen its challenge to Nvidia in a rapidly expanding market. AMD deepens AI inference bet with Taalas deal as chip race heats up
• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, and adjusted earnings of $1.66 per share, exceeding consensus estimates. Data Center revenue more than doubled, while management raised its outlook, reinforcing the long-term AI growth case. AMD tops Q2 earnings estimates and provides strong outlook
• Positive Sentiment: Several analysts remain constructive: Rosenblatt raised its price target to $700 with a buy rating, while JPMorgan lifted its target to $550 but retained a neutral rating. Recent institutional filings also showed sizable increases in AMD holdings by PNC Financial and GF Fund Management. AMD analyst price-target changes
• Neutral Sentiment: Investors continue to debate whether AMD can become a major Nvidia alternative. Optimistic views point to data-center demand, AI deployments and supply leverage, but the stock’s high valuation means additional upside likely requires sustained execution and accelerating growth. This Could Be One of the Best Opportunities to Buy AMD Stock in Months
• Negative Sentiment: AMD’s results and guidance, although strong, did not clear an exceptionally high AI-growth bar. Investors wanted stronger evidence of accelerating AI revenue, higher margins and a faster path to closing Nvidia’s competitive lead. Why AMD’s solid quarterly earnings failed to impress investors
• Negative Sentiment: Near-term concerns include slowing growth in AMD’s client and gaming businesses and intensifying Nvidia competition. SpaceX’s selection of Nvidia rather than AMD for an AI-chip partnership further underscored concerns about Nvidia’s customer and ecosystem advantages. AMD stock falls after record quarter as SpaceX picks Nvidia
• Negative Sentiment: At roughly 124 times earnings, AMD leaves little room for disappointment. The combination of lofty expectations, post-earnings profit-taking and increased short interest contributed to the weaker investor reaction despite the earnings beat. AMD short volume hits a two-week high

Advanced Micro Devices Stock Down 1.2%

Shares of AMD opened at $483.36 on Friday. The company's 50-day simple moving average is $514.56 and its 200-day simple moving average is $359.10. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.96 and a current ratio of 2.61. Advanced Micro Devices, Inc. has a 1 year low of $149.22 and a 1 year high of $584.73. The stock has a market capitalization of $789.07 billion, a PE ratio of 124.26 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating analysts' consensus estimates 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 firm had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. During the same quarter in the previous year, the business posted $0.48 earnings per share. The business's quarterly revenue was up 50.1% compared to the same quarter last year. Analysts forecast that Advanced Micro Devices, Inc. will post 6.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 6,000 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the sale, the executive vice president owned 1,233,687 shares of the company's stock, valued at approximately $661,663,348.71. This represents a 0.48% decrease in their ownership of the stock. The transaction 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, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the sale, the executive vice president owned 324,527 shares in the company, valued at approximately $140,000,947.80. The trade was a 5.66% 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. Over the last 90 days, insiders sold 285,934 shares of company stock worth $130,353,006. 0.50% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research analysts recently weighed in on AMD shares. Evercore reiterated an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a research report on Tuesday, May 19th. William Blair reissued a "market perform" rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. UBS Group reaffirmed an "overweight" rating on shares of Advanced Micro Devices in a research report on Friday, July 24th. HSBC cut shares of Advanced Micro Devices from a "buy" rating to a "hold" rating and lifted their price target for the company from $335.00 to $340.00 in a research report on Monday, May 4th. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $700.00 price objective on shares of Advanced Micro Devices in a report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and a consensus price target of $546.87.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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