Capital World Investors Sells 27,034 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• Capital World Investors cut its AMD stake by 18.7% in the fourth quarter, selling 27,034 shares and leaving it with 117,336 shares worth about $25.1 million.
• AMD reported better-than-expected quarterly results, with EPS of $1.37 versus $1.29 expected and revenue of $10.25 billion, up 37.8% year over year.
• Analyst sentiment remains mixed but constructive overall: the stock has a Moderate Buy consensus rating, though some firms recently downgraded shares while others lifted price targets as high as $505.

Capital World Investors reduced its position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 18.7% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 117,336 shares of the semiconductor manufacturer's stock after selling 27,034 shares during the quarter. Capital World Investors' holdings in Advanced Micro Devices were worth $25,129,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in AMD. Joseph Group Capital Management bought a new position in shares of Advanced Micro Devices during the 4th quarter valued at approximately $25,000. Sarver Vrooman Wealth Advisors bought a new position in shares of Advanced Micro Devices during 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 valued at approximately $30,000. Key Capital Management INC bought a new position in shares of Advanced Micro Devices during the 4th quarter valued at approximately $38,000. Finally, PFS Partners LLC grew its stake in shares of Advanced Micro Devices by 269.2% during the 4th quarter. PFS Partners LLC now owns 192 shares of the semiconductor manufacturer's stock valued at $41,000 after acquiring an additional 140 shares during the period. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Trading Down 3.0%

Shares of AMD opened at $475.51 on Wednesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. Advanced Micro Devices, Inc. has a 1 year low of $115.06 and a 1 year high of $546.44. The company has a 50 day simple moving average of $369.56 and a two-hundred day simple moving average of $268.77. The firm has a market cap of $775.37 billion, a P/E ratio of 155.91, a price-to-earnings-growth ratio of 1.44 and a beta of 2.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same period last year, the firm posted $0.96 EPS. The company's revenue was up 37.8% on a year-over-year basis. On average, equities analysts expect that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research analysts recently issued reports on AMD shares. Royal Bank Of Canada boosted their price objective on Advanced Micro Devices from $325.00 to $400.00 and gave the company a "sector perform" rating in a research note on Wednesday, May 6th. HSBC downgraded Advanced Micro Devices from a "buy" rating to a "hold" rating and boosted their price objective for the company from $335.00 to $340.00 in a research note on Monday, May 4th. Wolfe Research assumed coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They set a "peer perform" rating for the company. Jefferies Financial Group downgraded Advanced Micro Devices from a "buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Finally, Wells Fargo & Company boosted their price objective on Advanced Micro Devices from $345.00 to $505.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $419.86.

Insider Buying and Selling at Advanced Micro Devices

In other news, Director Nora Denzel sold 8,626 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the transaction, the director directly owned 87,173 shares in the company, valued at approximately $45,504,306. This represents a 9.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction that occurred 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 transaction, the executive vice president owned 324,527 shares of the company's stock, valued at $140,000,947.80. This represents a 5.66% 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. Over the last 90 days, insiders sold 332,032 shares of company stock worth $117,967,816. Insiders own 0.50% 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 announced a planned investment of up to £2 billion over five years in the United Kingdom to expand AI innovation, advanced computing, research partnerships, and workforce development, which supports its long-term AI growth story. AMD Commits up to £2 Billion to Accelerate AI Innovation and Research in the United Kingdom
• Positive Sentiment: Several analysts and commentators remained constructive on AMD, citing strong AI infrastructure demand, recent revenue growth, and potential upside from EPYC and Instinct adoption across cloud and enterprise markets.
• Neutral Sentiment: AMD also received attention for new collaborations with Imperial College London, Oriole Networks, and the University of Cambridge, which could help strengthen its AI ecosystem but are longer-term rather than immediate financial catalysts.
• Neutral Sentiment: Insider and institutional trading data showed mixed signals: insiders have been net sellers over the past six months, while several large funds have been adding to positions.
• Negative Sentiment: Shares were weighed by a broad semiconductor selloff and weaker risk appetite, with multiple reports noting that chipmakers, including AMD, pulled lower as the market’s recent AI rebound faded.
• Negative Sentiment: Bearish commentary also resurfaced, with some articles arguing AMD’s valuation is stretched and that Nvidia still holds a wide lead in AI accelerators, which may be pressuring sentiment.

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.

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