Contravisory Investment Management Inc. Sells 1,964 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• Contravisory Investment Management cut its AMD stake by 36.5%, selling 1,964 shares and retaining 3,410 shares valued at approximately $1.98 million. Institutional investors collectively own 71.34% of AMD.
• AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, while adjusted EPS of $1.66 topped estimates and Data Center revenue more than doubled. The company also agreed to acquire AI-inference chip startup Taalas to strengthen its Instinct GPU technology.
• Despite strong results and a consensus “Moderate Buy” rating with an average price target of $546.87, AMD faces high expectations, Nvidia competition and a lofty valuation of roughly 124 times earnings.

Contravisory Investment Management Inc. reduced its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 36.5% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,410 shares of the semiconductor manufacturer's stock after selling 1,964 shares during the period. Contravisory Investment Management Inc.'s holdings in Advanced Micro Devices were worth $1,981,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices during the 4th quarter worth about $25,000. Sarver Vrooman Wealth Advisors acquired a new position in Advanced Micro Devices in the fourth quarter worth approximately $27,000. Cornerstone Financial Management LLC acquired a new position in Advanced Micro Devices in the fourth quarter worth approximately $27,000. Basepoint Wealth LLC bought a new position in Advanced Micro Devices during the fourth quarter valued at approximately $30,000. Finally, Graney & King LLC acquired a new stake in Advanced Micro Devices in the first quarter valued at approximately $31,000. 71.34% of the stock is currently owned by institutional investors.

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

Insider Transactions at Advanced Micro Devices

In other news, EVP Forrest Eugene Norrod sold 19,487 shares of the business's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the sale, the executive vice president directly 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. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nora Denzel sold 8,626 shares of the business's 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 sale, the director directly owned 87,173 shares in the company, valued at $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 285,934 shares of company stock valued at $130,353,006. Company insiders own 0.50% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AMD shares. Northland Securities reaffirmed a "market perform" rating and issued a $260.00 price target on shares of Advanced Micro Devices in a research report on Monday, April 27th. Oppenheimer lowered Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a report on Wednesday, May 6th. Robert W. Baird set a $1,250.00 price objective on Advanced Micro Devices in a research note on Friday, July 24th. Susquehanna lifted their price target on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the company a "positive" rating in a research report on Thursday, July 30th. Finally, Jefferies Financial Group set a $650.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $546.87.

Advanced Micro Devices Stock Performance

Shares of Advanced Micro Devices stock opened at $483.36 on Monday. Advanced Micro Devices, Inc. has a fifty-two week low of $149.22 and a fifty-two week high of $584.73. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market capitalization of $789.07 billion, a P/E ratio of 124.26 and a beta of 2.48. The company's 50 day moving average price is $514.56 and its two-hundred day moving average price is $360.00.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the prior year, the business earned $0.48 earnings per share. The company's revenue for the quarter was up 50.1% compared to the same quarter last year. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 6.38 earnings per share for the current fiscal year.

About Advanced Micro Devices

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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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.

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