Eminence Capital LP Reduces Stock Position in Advanced Micro Devices, Inc. $AMD

Key Points

• Eminence Capital LP cut its AMD stake by 35.2% in the fourth quarter, selling 525,114 shares and leaving it with 968,441 shares worth about $207.4 million. AMD still makes up about 3.3% of the fund’s holdings.
• Wall Street sentiment on AMD remains broadly positive, with multiple analysts raising price targets and the consensus rating sitting at “Moderate Buy.” The average target price is $430.68, below the stock’s recent trading level.
• AMD continues to show strong business momentum, recently beating quarterly earnings and revenue expectations with revenue up 37.8% year over year. The article also highlights AI-related wins, including a Rackspace deployment agreement and upgrades tied to GPU and server CPU demand.

Eminence Capital LP lessened its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 35.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 968,441 shares of the semiconductor manufacturer's stock after selling 525,114 shares during the quarter. Advanced Micro Devices comprises about 3.3% of Eminence Capital LP's holdings, making the stock its 12th biggest holding. Eminence Capital LP owned 0.06% of Advanced Micro Devices worth $207,401,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AMD. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at about $25,000. Sarver Vrooman Wealth Advisors acquired a new stake in shares of Advanced Micro Devices during the 4th quarter worth $27,000. Cornerstone Financial Management LLC purchased a new position in shares of Advanced Micro Devices in the 4th quarter worth about $27,000. Basepoint Wealth LLC purchased a new position in Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Finally, Aviso Financial Inc. lifted its holdings in shares of Advanced Micro Devices by 400.0% during the 3rd quarter. Aviso Financial Inc. now owns 200 shares of the semiconductor manufacturer's stock valued at $32,000 after acquiring an additional 160 shares in the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD signed a definitive agreement with Rackspace to deploy an initial 30 MW of AMD-based AI compute across Rackspace’s global data centers, strengthening AMD’s enterprise AI growth story. Article Title
• Positive Sentiment: Citi raised AMD to Buy and lifted its target to $575, citing major GPU sales potential at Meta and a booming agentic AI server CPU market. Article Title
• Positive Sentiment: Bernstein’s “CPU renaissance” note and related price-target hikes reinforced expectations for stronger data-center CPU demand, with AMD seen as a key beneficiary. Article Title
• Positive Sentiment: AMD’s move to address AI memory bottlenecks with its MEXT acquisition and other ecosystem efforts supports the company’s long-term AI platform strategy. Article Title
• Neutral Sentiment: EVP Mark D. Papermaster sold 6,000 shares under a pre-arranged 10b5-1 plan; this is notable but less likely to change the business outlook. Article Title

Analysts Set New Price Targets

Several analysts have recently weighed in on AMD shares. Needham & Company LLC raised Advanced Micro Devices to a "buy" rating in a research report on Wednesday, May 6th. KeyCorp boosted their price objective on Advanced Micro Devices from $330.00 to $530.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Piper Sandler reaffirmed an "overweight" rating on shares of Advanced Micro Devices in a research report on Wednesday, February 25th. The Goldman Sachs Group raised shares of Advanced Micro Devices from a "buy" rating to a "buy" rating in a research report on Friday, June 12th. Finally, Evercore reiterated an "outperform" rating and set a $579.00 price target on shares of Advanced Micro Devices in a report on Tuesday, May 19th. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $430.68.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction that occurred on 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 completion of the sale, the executive vice president directly owned 324,527 shares of the company's stock, valued at approximately $140,000,947.80. This trade represents a 5.66% decrease in their position. 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, EVP Mark D. Papermaster sold 6,000 shares of Advanced Micro Devices stock in a transaction on 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 $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 have sold a total of 378,032 shares of company stock valued at $161,876,596 in the last ninety days. Insiders own 0.50% of the company's stock.

Advanced Micro Devices Stock Performance

Advanced Micro Devices stock opened at $512.48 on Thursday. Advanced Micro Devices, Inc. has a 12-month low of $125.77 and a 12-month high of $558.37. The stock has a market capitalization of $835.65 billion, a price-to-earnings ratio of 168.03, a P/E/G ratio of 1.48 and a beta of 2.50. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The stock has a 50-day simple moving average of $404.65 and a 200 day simple moving average of $281.16.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results 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 company had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. During the same period in the prior year, the company posted $0.96 EPS. The company's revenue was up 37.8% compared to the same quarter last year. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.2 earnings per share 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.

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