Chesley Taft & Associates LLC Invests $2.93 Million in Advanced Micro Devices, Inc. $AMD

Key Points

• Chesley Taft & Associates acquired 5,051 AMD shares worth approximately $2.93 million in the second quarter. Institutional investors collectively own 71.34% of AMD.
• AMD reported quarterly revenue of $11.54 billion, up 50.1% year over year, and earnings of $1.66 per share, beating analyst expectations. However, the stock remains highly valued at roughly 124 times earnings and recently traded down 1.2%.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $546.87, while AMD’s planned acquisition of AI-inference chip startup Taalas could strengthen its competition with Nvidia.

Chesley Taft & Associates LLC acquired a new position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) in the second quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 5,051 shares of the semiconductor manufacturer's stock, valued at approximately $2,934,000.

A number of other institutional investors also recently added to or reduced their stakes in AMD. Norges Bank purchased a new stake in shares of Advanced Micro Devices during the fourth quarter valued at about $4,929,312,000. Jennison Associates LLC grew its position in shares of Advanced Micro Devices by 181.6% in the 4th quarter. Jennison Associates LLC now owns 10,910,310 shares of the semiconductor manufacturer's stock worth $2,336,552,000 after buying an additional 7,035,991 shares during the last quarter. Cardano Risk Management B.V. purchased a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $1,000,783,000. Wellington Management Group LLP raised its stake in shares of Advanced Micro Devices by 335.9% during the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock worth $784,330,000 after acquiring an additional 3,735,807 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of Advanced Micro Devices by 340.1% during the 4th quarter. Franklin Resources Inc. now owns 4,747,834 shares of the semiconductor manufacturer's stock worth $1,016,796,000 after acquiring an additional 3,669,054 shares in the last quarter. Institutional investors own 71.34% of the company's stock.

Insider Transactions at Advanced Micro Devices

In related news, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total value of $8,406,691.80. Following the completion of the transaction, the executive vice president owned 324,527 shares in the company, valued at $140,000,947.80. This trade represents a 5.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of Advanced Micro Devices stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $536.33, for a total value of $3,217,980.00. Following the sale, the executive vice president directly 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 285,934 shares of company stock valued at $130,353,006 in the last quarter. Insiders own 0.50% of the company's stock.

Advanced Micro Devices Stock Down 1.2%

NASDAQ:AMD opened at $483.36 on Friday. The company has a current ratio of 2.61, a quick ratio of 1.96 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 company has a market cap of $789.07 billion, a PE ratio of 124.26 and a beta of 2.48. The company's 50 day moving average is $514.56 and its two-hundred day moving average is $359.10.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results 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 net margin of 15.58% and a return on equity of 12.30%. The business had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. During the same quarter last year, the company posted $0.48 earnings per share. The business's quarterly revenue was up 50.1% on a year-over-year basis. Analysts anticipate that Advanced Micro Devices, Inc. will post 6.38 EPS for the current year.

Analysts Set New Price Targets

AMD has been the subject of several recent analyst reports. Stifel Nicolaus raised their target price on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a "buy" rating in a research note on Friday, July 10th. KeyCorp set a $650.00 price target on Advanced Micro Devices in a research report on Wednesday. Wolfe Research set a $450.00 price objective on Advanced Micro Devices and gave the company an "outperform" rating in a report on Monday, June 15th. Rosenblatt Securities raised their price objective on Advanced Micro Devices from $665.00 to $700.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Loop Capital upgraded Advanced Micro Devices to a "strong-buy" rating in a research note on Tuesday, June 16th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $546.87.

Key Stories Impacting Advanced Micro Devices

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 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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