BlackRock Inc. Buys 4,535,126 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• BlackRock increased its AMD stake by 3.1%, purchasing 4.54 million additional shares to own approximately 150.3 million shares, or 9.22% of the company valued at $87.3 billion. Institutional investors and hedge funds collectively own 71.34% of AMD.
• AMD reported quarterly revenue of $11.54 billion, up 50.1% year over year, while earnings of $1.66 per share exceeded analyst expectations. Wall Street maintains a “Moderate Buy” consensus rating with an average price target of $546.95.
• AMD’s AI growth prospects are attracting bullish attention, including potential collaboration with Google, but high valuation and intense competition from Nvidia and custom-chip providers remain key risks. Insiders have also sold roughly $99.9 million of shares over the past three months, primarily under pre-arranged trading plans.

BlackRock Inc. raised its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 3.1% during the 2nd quarter, according to the company in its most recent filing with the SEC. The firm owned 150,301,510 shares of the semiconductor manufacturer's stock after purchasing an additional 4,535,126 shares during the quarter. Advanced Micro Devices accounts for about 1.3% of BlackRock Inc.'s investment portfolio, making the stock its 12th biggest position. BlackRock Inc. owned about 9.22% of Advanced Micro Devices worth $87,311,650,000 as of its most recent filing with the SEC.

A number of other institutional investors have also added to or reduced their stakes in the company. Joseph Group Capital Management acquired a new stake in shares of Advanced Micro Devices during the 4th quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new position in Advanced Micro Devices during the fourth quarter worth about $27,000. Sarver Vrooman Wealth Advisors bought a new stake in shares of Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Basepoint Wealth LLC bought a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $30,000. Finally, Graney & King LLC bought a new position in shares of Advanced Micro Devices during the 1st quarter worth approximately $31,000. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: BMO initiated coverage of AMD with a buy recommendation, adding to bullish Wall Street sentiment toward the semiconductor sector and AMD’s AI opportunity. BMO Buy Ratings for Semiconductor Stocks
• Positive Sentiment: AMD continues to show stronger and more consistent revenue growth than Arm Holdings. Its latest quarter included record revenue of $11.54 billion, up 50.1% year over year, and earnings that exceeded analyst expectations. AMD and Arm Revenue Comparison
• Positive Sentiment: Reports that Google may collaborate with AMD on its next-generation TPU could represent a meaningful design win and broaden AMD’s relationships with hyperscalers. Coatue Management’s new position, valued at approximately $55.8 million, also signals institutional interest in the AI trade. Google Reportedly Working With AMD on a TPU
• Neutral Sentiment: AMD is increasingly viewed as Nvidia’s most credible AI-chip challenger, particularly with its Helios platform, but investors remain focused on whether it can narrow Nvidia’s ecosystem and market-share advantages. AMD and Nvidia AI Competition
• Negative Sentiment: Google’s expanding custom-chip program, including its relationship with Marvell, could increase competition for AI-inference workloads. A report that SpaceX selected Nvidia’s Vera Rubin platform reinforces concerns that AMD is still losing some high-profile AI infrastructure opportunities. SpaceX Selects Nvidia AI Infrastructure
• Negative Sentiment: CEO Lisa Su and SVP Ava Hahn sold shares totaling roughly $8.7 million. The transactions were made under pre-arranged Rule 10b5-1 plans, limiting their signaling value, but the sales may still weigh on sentiment after AMD’s substantial rally. AMD Insider Stock Sale
• Negative Sentiment: Valuation remains a risk: AMD trades at a very high earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if AI growth slows or fails to meet aggressive expectations. AMD Valuation Analysis

Insider Buying and Selling

In other news, EVP Paul Darren Grasby sold 15,000 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the completion of the sale, the executive vice president owned 117,687 shares in the company, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Lisa T. Su sold 125,000 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the transaction, the chief executive officer directly owned 2,896,899 shares in the company, valued at $1,334,572,400.31. The trade was a 4.14% decrease in their position. 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 three months, insiders sold 210,763 shares of company stock valued at $99,912,107. 0.50% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of brokerages have weighed in on AMD. JPMorgan Chase & Co. upped their price target on Advanced Micro Devices from $385.00 to $550.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Bank of America lifted their price target on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. UBS Group reissued an "overweight" rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Advanced Micro Devices in a research report on Monday, August 3rd. Finally, Wolfe Research set a $450.00 price target on Advanced Micro Devices and gave the company an "outperform" rating in a research note on Monday, June 15th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $546.95.

Advanced Micro Devices Price Performance

Shares of AMD opened at $473.25 on Friday. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03. Advanced Micro Devices, Inc. has a twelve month low of $149.22 and a twelve month high of $584.73. The stock has a market capitalization of $772.57 billion, a P/E ratio of 121.66 and a beta of 2.48. The company has a 50 day moving average of $511.40 and a 200-day moving average of $375.55.

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 (EPS) for the quarter, topping analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion for the quarter, compared to analysts' expectations of $11.31 billion. During the same quarter in the prior year, the business posted $0.48 EPS. The business's revenue was up 50.1% compared to the same quarter last year. As a group, equities research analysts forecast that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

Advanced Micro Devices 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.

Want to see what other hedge funds are holding AMD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report).

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source