Employees Retirement System of Texas Acquires New Stake in Advanced Micro Devices, Inc. $AMD

Key Points

• Employees Retirement System of Texas opened a new AMD position in the fourth quarter, buying 391,075 shares worth about $83.8 million.
• AMD reported better-than-expected quarterly results, with EPS of $1.37 and revenue of $10.25 billion, while revenue jumped 37.8% year over year.
• Wall Street sentiment remains bullish, with several firms raising price targets and the stock trading near its 52-week high amid optimism around AI demand and AMD’s data center products.

Employees Retirement System of Texas bought a new position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 391,075 shares of the semiconductor manufacturer's stock, valued at approximately $83,753,000.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Brighton Jones LLC increased its stake in Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after purchasing an additional 29,438 shares during the period. Revolve Wealth Partners LLC boosted its stake in shares of Advanced Micro Devices by 2.9% in the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock valued at $1,001,000 after purchasing an additional 234 shares during the period. Sivia Capital Partners LLC boosted its stake in shares of Advanced Micro Devices by 125.1% in the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer's stock valued at $758,000 after purchasing an additional 2,970 shares during the period. United Bank grew its holdings in shares of Advanced Micro Devices by 22.0% in the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer's stock valued at $1,881,000 after purchasing an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. grew its holdings in shares of Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer's stock valued at $1,310,000 after purchasing an additional 7,228 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD is being viewed as a major AI beneficiary, with articles highlighting rising demand for its Instinct GPUs, EPYC CPUs, and rack-scale AI infrastructure products. OneQode to Deploy AMD Instinct GPUs and Plans for AMD Helios Rack-Scale Solution for Global AI Infrastructure
• Positive Sentiment: Wall Street appears to be raising its long-term expectations for AMD, with fresh commentary about a possible path to a $1 trillion market cap and higher price targets from analysts. What Will It Take for AMD’s Market Cap to Hit $1 Trillion?
• Positive Sentiment: Sector-wide strength is also helping AMD, as investors rotate into AI chip stocks beyond Nvidia and bid up semiconductor names broadly. Why Qualcomm, AMD, Intel, other AI stocks are surging sharply on Tuesday
• Neutral Sentiment: Some commentary is more cautionary, noting that momentum in AMD and other chip stocks could eventually face valuation pressure after a strong run. Intel, AMD, and Other Momentum Stocks Look Unstoppable. Look Again.
• Negative Sentiment: There is also competitive concern in the background, with one article arguing Nvidia could pressure AMD in CPUs and related AI markets, which could temper upside if competition intensifies. Nvidia Vs. AMD: Nvidia Will Eat AMD's CPU Lunch

Advanced Micro Devices Trading Up 7.8%

NASDAQ AMD opened at $503.89 on Wednesday. Advanced Micro Devices, Inc. has a 52 week low of $108.62 and a 52 week high of $506.96. The firm has a 50 day moving average of $309.03 and a two-hundred day moving average of $250.05. 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 market capitalization of $821.64 billion, a PE ratio of 165.21, a price-to-earnings-growth ratio of 1.37 and a beta of 2.40.

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 for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company's revenue was up 37.8% on a year-over-year basis. During the same period last year, the business earned $0.96 EPS. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.2 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on AMD shares. Rosenblatt Securities increased their target price on shares of Advanced Micro Devices from $300.00 to $490.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Melius Research set a $540.00 price target on shares of Advanced Micro Devices in a research note on Monday, May 18th. Seaport Research Partners raised Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price objective on the stock in a research report on Wednesday, May 6th. The Goldman Sachs Group upgraded Advanced Micro Devices from a "neutral" rating to a "buy" rating and increased their price objective for the company from $240.00 to $450.00 in a research note on Wednesday, May 6th. Finally, Wells Fargo & Company lifted their target price on Advanced Micro Devices from $345.00 to $505.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $410.00.

Insiders Place Their Bets

In other news, EVP Paul Darren Grasby sold 24,376 shares of the company's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares of the company's stock, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction dated 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 completion of the transaction, the executive vice president owned 324,527 shares in the company, valued at approximately $140,000,947.80. The trade was a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 329,085 shares of company stock worth $114,051,007. 0.50% of the stock is owned by corporate insiders.

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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