King Luther Capital Management Corp Increases Holdings in Advanced Micro Devices, Inc. $AMD

Key Points

• King Luther Capital Management increased its Advanced Micro Devices stake by 21.7% in the fourth quarter, ending with 72,159 shares valued at about $15.45 million.
• AMD reported better-than-expected quarterly results, with earnings of $1.37 per share on revenue of $10.25 billion, both ahead of estimates; revenue rose 37.8% year over year.
• Despite recent insider selling and some mixed commentary, analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average price target of $410.

King Luther Capital Management Corp raised its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 21.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 72,159 shares of the semiconductor manufacturer's stock after buying an additional 12,843 shares during the period. King Luther Capital Management Corp's holdings in Advanced Micro Devices were worth $15,454,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in the stock. Impax Asset Management Group plc grew its position in shares of Advanced Micro Devices by 326.5% during the 3rd quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer's stock valued at $8,424,000 after acquiring an additional 39,861 shares during the period. Jefferies Financial Group Inc. grew its position in shares of Advanced Micro Devices by 6,228.8% during the 4th quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer's stock valued at $65,966,000 after acquiring an additional 303,154 shares during the period. Williamson Legacy Group LLC bought a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $1,118,000. Zweig DiMenna Associates LLC grew its position in shares of Advanced Micro Devices by 127.6% during the 3rd quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer's stock valued at $11,746,000 after acquiring an additional 40,708 shares during the period. Finally, Valtinson Bruner Financial Planning LLC bought a new stake in shares of Advanced Micro Devices during the 4th quarter valued at $1,523,000. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Stock Down 1.7%

AMD opened at $495.54 on Thursday. The firm has a 50-day simple moving average of $315.01 and a two-hundred day simple moving average of $251.86. Advanced Micro Devices, Inc. has a 52 week low of $108.62 and a 52 week high of $510.21. The company has a market capitalization of $808.03 billion, a PE ratio of 162.47, a price-to-earnings-growth ratio of 1.48 and a beta of 2.40. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate 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 business had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the prior year, the firm earned $0.96 EPS. The business's revenue was up 37.8% on a year-over-year basis. Analysts forecast that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on AMD shares. Wolfe Research started coverage on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. They set a "peer perform" rating for the company. KeyCorp boosted their price objective on shares of Advanced Micro Devices from $330.00 to $530.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Raymond James Financial started coverage on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. They set a "market perform" rating for the company. Roth Mkm reissued a "buy" rating and set a $500.00 price objective on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. Finally, The Goldman Sachs Group raised shares of Advanced Micro Devices from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $240.00 to $450.00 in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $410.00.

More Advanced Micro Devices News

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

• Positive Sentiment: AMD’s data center business remains a major growth engine, with one recent write-up highlighting 57% year-over-year data center revenue growth to $5.78 billion, driven by EPYC CPU demand and ramping Instinct AI products. Article title
• Positive Sentiment: AMD got a lift from a new OneQode collaboration to deploy AMD Instinct MI355X GPUs and plan for AMD’s Helios rack-scale solution, reinforcing demand for its AI infrastructure products. Article title
• Positive Sentiment: Analyst commentary remains constructive, with multiple recent notes describing AMD as a beneficiary of the AI spending cycle and highlighting upside tied to continued data center and CPU gains. Article title
• Neutral Sentiment: Some articles focused on AMD’s rapid valuation expansion and the question of whether the stock can become a trillion-dollar company, which keeps expectations high but does not change the near-term growth story. Article title
• Negative Sentiment: Sentiment was pressured by reports that Cathie Wood continued trimming AMD exposure, and by concerns that Nvidia could move into the standalone server CPU market, increasing competitive pressure on AMD’s growth areas. Article title Article title

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 24,376 shares of the company's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $444.39, for a total transaction of $10,832,450.64. Following the sale, the executive vice president directly owned 105,222 shares in the company, valued at approximately $46,759,604.58. This represents a 18.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Lisa T. Su sold 125,000 shares of the company's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $445.51, for a total transaction of $55,688,750.00. Following the sale, the chief executive officer owned 3,021,899 shares in the company, valued at $1,346,286,223.49. This represents a 3.97% decrease in their ownership of the stock. 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 329,085 shares of company stock valued at $114,051,007 over the last quarter. 0.50% of the stock is owned by corporate insiders.

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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