HighTower Advisors LLC Decreases Holdings in Advanced Micro Devices, Inc. $AMD

Key Points

• HighTower Advisors reduced its AMD stake by 4.8% in the second quarter, selling 21,683 shares and retaining 428,637 shares valued at approximately $249 million. Institutional investors collectively own 71.34% of AMD.
• AMD reported 50.1% year-over-year revenue growth and quarterly earnings of $1.66 per share, exceeding estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $553.72.
• Despite strong AI-driven growth prospects, AMD faces elevated valuation and competitive risks: the stock trades at about 123 times earnings after rising more than 200% over the past year, while Broadcom and NVIDIA remain key rivals. Insiders have also sold approximately $109.5 million of shares over the past 90 days under pre-arranged trading plans.

HighTower Advisors LLC decreased its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 4.8% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 428,637 shares of the semiconductor manufacturer's stock after selling 21,683 shares during the quarter. HighTower Advisors LLC's holdings in Advanced Micro Devices were worth $249,000,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. JNBA Financial Advisors increased its stake in Advanced Micro Devices by 142.9% during the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after buying an additional 30 shares in the last quarter. Luminist Capital LLC purchased a new position in shares of Advanced Micro Devices in the second quarter valued at approximately $46,000. BOK Financial Private Wealth Inc. acquired a new stake in shares of Advanced Micro Devices in the second quarter worth approximately $53,000. Toews Corp ADV acquired a new stake in shares of Advanced Micro Devices in the second quarter worth approximately $66,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices during the fourth quarter worth approximately $27,000. 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 shares gained after the company unveiled a more than $100,000 AI workstation planned for 2027. The product reinforces AMD’s push beyond data-center chips and could expand its exposure to high-end AI systems. AMD Stock Jumps After Unveiling $100,000-Plus AI Workstation for 2027
• Positive Sentiment: One forecast sees AMD’s data-center business exceeding 70% of company revenue in 2027, based on its recent growth outpacing all other segments. If sustained, that mix shift would make AMD more leveraged to the fast-growing AI infrastructure market. Prediction: Data Center Passes 70% of AMD's Revenue in 2027
• Positive Sentiment: Several analysts and commentators argue that AMD’s strong AI performance and upcoming product ramps are not fully reflected in the valuation, with one bullish thesis suggesting substantial long-term appreciation. AMD’s latest reported quarter also showed 50.1% year-over-year revenue growth and an earnings beat.
• Neutral Sentiment: AMD and NVIDIA are pursuing different strategies for capturing AI spending. Commentary suggests AMD may benefit from the next phase of AI buildouts if customers seek more supplier diversity and alternative architectures, but the outcome remains uncertain. AMD Is Behind the AI Chip Shift Nobody Is Talking About
• Negative Sentiment: Valuation is a major concern. AMD has risen more than 200% over the past year and trades at roughly 123 times earnings, making the stock vulnerable to profit-taking or disappointment even if AI demand remains strong. AMD Is Now More Expensive Than Nvidia And Broadcom
• Negative Sentiment: Broadcom is identified as a significant competitive threat because it is building deep relationships with hyperscale customers and could capture part of the same AI infrastructure market AMD is targeting. The risk is that AMD’s growth ceiling may be lower than current expectations. AMD’s Whole AI Story Has One Threat It Cannot Ignore: Broadcom
• Negative Sentiment: Other analysis acknowledges that AI demand is real but highlights execution, competition, cyclical semiconductor conditions, and the possibility that expectations have become too aggressive. Seasonal September weakness across major indexes could also add pressure to high-beta semiconductor stocks.

Insiders Place Their Bets

In other news, EVP Mark Papermaster sold 28,811 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the transaction, the executive vice president directly owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This represents a 2.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the transaction, the executive vice president directly owned 160,979 shares of the company's stock, valued at $76,316,924.32. The trade was a 8.52% 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. In the last ninety days, insiders sold 232,577 shares of company stock worth $109,509,170. Insiders own 0.50% of the company's stock.

Advanced Micro Devices Stock Performance

Advanced Micro Devices stock opened at $477.57 on Tuesday. The firm has a 50 day simple moving average of $497.96 and a 200-day simple moving average of $396.52. Advanced Micro Devices, Inc. has a 1-year low of $149.22 and a 1-year 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 stock has a market cap of $779.62 billion, a price-to-earnings ratio of 122.77, a price-to-earnings-growth ratio of 4.95 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating 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 firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the previous year, the company earned $0.48 EPS. The business's revenue for the quarter was up 50.1% compared to the same quarter last year. On average, analysts expect that Advanced Micro Devices, Inc. will post 6.44 EPS for the current year.

Analyst Ratings Changes

Several research analysts recently commented on AMD shares. Susquehanna increased their price objective on Advanced Micro Devices from $450.00 to $500.00 and gave the company a "positive" rating in a research note on Thursday, July 30th. Rosenblatt Securities upped their target price on shares of Advanced Micro Devices from $665.00 to $700.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Benchmark increased their target price on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Loop Capital raised shares of Advanced Micro Devices to a "strong-buy" rating in a research note on Tuesday, June 16th. Finally, Citigroup raised shares of Advanced Micro Devices from a "market perform" rating to a "buy" rating in a research note on Wednesday, July 22nd. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $553.72.

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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