Advanced Micro Devices, Inc. $AMD Position Boosted by Eminence Capital LP

Key Points

• Eminence Capital LP increased its holdings in Advanced Micro Devices, Inc. by 52.5% during the first quarter, now owning approximately 1.57 million shares worth around $161 million.
• Advanced Micro Devices recently reported quarterly earnings of $0.48 EPS, falling short of the consensus estimate of $0.54, while revenue rose 31.7% year-over-year to $7.69 billion.
• The company has initiated a $6 billion stock buyback plan, indicating confidence in its stock value and further consolidating its market presence in the semiconductor industry.

Eminence Capital LP lifted its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 52.5% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,566,817 shares of the semiconductor manufacturer's stock after buying an additional 539,075 shares during the quarter. Advanced Micro Devices makes up 2.7% of Eminence Capital LP's holdings, making the stock its 17th largest position. Eminence Capital LP owned about 0.10% of Advanced Micro Devices worth $160,975,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Seaview Investment Managers LLC boosted its holdings in Advanced Micro Devices by 4.3% in the 1st quarter. Seaview Investment Managers LLC now owns 2,256 shares of the semiconductor manufacturer's stock valued at $232,000 after purchasing an additional 93 shares in the last quarter. Activest Wealth Management boosted its holdings in Advanced Micro Devices by 9.4% in the 1st quarter. Activest Wealth Management now owns 1,136 shares of the semiconductor manufacturer's stock valued at $117,000 after purchasing an additional 98 shares in the last quarter. Peterson Wealth Services boosted its holdings in Advanced Micro Devices by 2.9% in the 1st quarter. Peterson Wealth Services now owns 3,650 shares of the semiconductor manufacturer's stock valued at $375,000 after purchasing an additional 103 shares in the last quarter. Lifeworks Advisors LLC boosted its holdings in Advanced Micro Devices by 5.6% in the 1st quarter. Lifeworks Advisors LLC now owns 1,974 shares of the semiconductor manufacturer's stock valued at $203,000 after purchasing an additional 104 shares in the last quarter. Finally, Vermillion & White Wealth Management Group LLC boosted its holdings in Advanced Micro Devices by 29.0% in the 1st quarter. Vermillion & White Wealth Management Group LLC now owns 467 shares of the semiconductor manufacturer's stock valued at $48,000 after purchasing an additional 105 shares in the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Trading Down 6.6%

Shares of AMD stock traded down $10.65 on Friday, reaching $151.14. 77,891,119 shares of the stock were exchanged, compared to its average volume of 48,056,704. The stock has a market cap of $245.28 billion, a P/E ratio of 86.86, a price-to-earnings-growth ratio of 1.90 and a beta of 1.92. The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05. The firm has a 50 day moving average of $161.36 and a two-hundred day moving average of $125.54. Advanced Micro Devices, Inc. has a 1-year low of $76.48 and a 1-year high of $186.65.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.06). Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company had revenue of $7.69 billion during the quarter, compared to analyst estimates of $7.41 billion. During the same quarter in the prior year, the company posted $0.69 earnings per share. The firm's revenue for the quarter was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Advanced Micro Devices declared that its Board of Directors has approved a stock repurchase program on Wednesday, May 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to reacquire up to 3.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 225,000 shares of the stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $163.97, for a total value of $36,893,250.00. Following the completion of the sale, the chief executive officer directly owned 3,359,748 shares in the company, valued at approximately $550,897,879.56. This represents a 6.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the completion of the transaction, the executive vice president directly owned 125,505 shares of the company's stock, valued at approximately $21,738,721.05. The trade was a 7.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 252,998 shares of company stock worth $41,415,580. Corporate insiders own 0.06% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Stifel Nicolaus boosted their price target on Advanced Micro Devices from $161.00 to $190.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Melius Research raised Advanced Micro Devices from a "hold" rating to a "strong-buy" rating and upped their target price for the company from $110.00 to $175.00 in a research note on Monday, June 23rd. Hsbc Global Res raised Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 10th. Morgan Stanley cut their price target on Advanced Micro Devices from $185.00 to $168.00 and set an "equal weight" rating for the company in a report on Wednesday, August 6th. Finally, Seaport Res Ptn downgraded Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a report on Thursday. Three analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $181.33.

Advanced Micro Devices Profile

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.