Lee Johnson Capital Management LLC Takes Position in Advanced Micro Devices, Inc. $AMD

Key Points

• Lee Johnson Capital Management initiated a position in AMD, buying 14,255 shares worth approximately $8.28 million. AMD now represents about 2.6% of the firm’s portfolio and is its sixth-largest holding.
• AMD reported strong quarterly results, with revenue rising 50.1% year over year to $11.54 billion and EPS exceeding expectations. Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $546.95.
• Despite bullish AI growth prospects and potential hyperscaler opportunities, valuation and competition remain risks. AMD trades at a high earnings multiple, while insider selling and Nvidia’s continued AI-market advantages could weigh on investor sentiment.

Lee Johnson Capital Management LLC purchased a new stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 14,255 shares of the semiconductor manufacturer's stock, valued at approximately $8,281,000. Advanced Micro Devices makes up approximately 2.6% of Lee Johnson Capital Management LLC's holdings, making the stock its 6th biggest holding.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. First National Bank of Hutchinson raised its holdings in Advanced Micro Devices by 0.4% during the 2nd quarter. First National Bank of Hutchinson now owns 5,639 shares of the semiconductor manufacturer's stock valued at $3,276,000 after acquiring an additional 22 shares during the period. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Advanced Micro Devices by 12.8% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer's stock worth $43,000 after acquiring an additional 24 shares during the period. Trust Co of the South boosted its holdings in shares of Advanced Micro Devices by 1.5% in the second quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer's stock worth $1,014,000 after acquiring an additional 25 shares during the period. Beaird Harris Wealth Management LLC grew its position in shares of Advanced Micro Devices by 9.4% in the second quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the semiconductor manufacturer's stock valued at $169,000 after purchasing an additional 25 shares in the last quarter. Finally, Veery Capital LLC grew its position in shares of Advanced Micro Devices by 1.0% in the second quarter. Veery Capital LLC now owns 2,793 shares of the semiconductor manufacturer's stock valued at $1,622,000 after purchasing an additional 27 shares in the last quarter. 71.34% of the stock is owned by institutional investors.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: BMO initiated coverage of AMD with a buy recommendation, adding to bullish Wall Street sentiment toward the semiconductor sector and AMD’s AI opportunity. BMO Buy Ratings for Semiconductor Stocks
• Positive Sentiment: AMD continues to show stronger and more consistent revenue growth than Arm Holdings. Its latest quarter included record revenue of $11.54 billion, up 50.1% year over year, and earnings that exceeded analyst expectations. AMD and Arm Revenue Comparison
• Positive Sentiment: Reports that Google may collaborate with AMD on its next-generation TPU could represent a meaningful design win and broaden AMD’s relationships with hyperscalers. Coatue Management’s new position, valued at approximately $55.8 million, also signals institutional interest in the AI trade. Google Reportedly Working With AMD on a TPU
• Neutral Sentiment: AMD is increasingly viewed as Nvidia’s most credible AI-chip challenger, particularly with its Helios platform, but investors remain focused on whether it can narrow Nvidia’s ecosystem and market-share advantages. AMD and Nvidia AI Competition
• Negative Sentiment: Google’s expanding custom-chip program, including its relationship with Marvell, could increase competition for AI-inference workloads. A report that SpaceX selected Nvidia’s Vera Rubin platform reinforces concerns that AMD is still losing some high-profile AI infrastructure opportunities. SpaceX Selects Nvidia AI Infrastructure
• Negative Sentiment: CEO Lisa Su and SVP Ava Hahn sold shares totaling roughly $8.7 million. The transactions were made under pre-arranged Rule 10b5-1 plans, limiting their signaling value, but the sales may still weigh on sentiment after AMD’s substantial rally. AMD Insider Stock Sale
• Negative Sentiment: Valuation remains a risk: AMD trades at a very high earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if AI growth slows or fails to meet aggressive expectations. AMD Valuation Analysis

Analyst Upgrades and Downgrades

AMD has been the topic of a number of analyst reports. Bank of America boosted their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Citigroup upgraded Advanced Micro Devices from a "market perform" rating to a "buy" rating in a research note on Wednesday, July 22nd. TD Cowen reaffirmed a "buy" rating on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Loop Capital upgraded Advanced Micro Devices to a "strong-buy" rating in a research report on Tuesday, June 16th. Finally, HSBC downgraded shares of Advanced Micro Devices from a "buy" rating to a "hold" rating and increased their price target for the stock from $335.00 to $340.00 in a report on Monday, May 4th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $546.95.

Insider Activity

In other news, Director Nora Denzel sold 8,626 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares of the company's stock, valued at approximately $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Paul Darren Grasby sold 15,000 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the transaction, the executive vice president directly owned 117,687 shares of the company's stock, valued at $60,598,213.17. The trade was a 11.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 210,763 shares of company stock worth $99,912,107. Company insiders own 0.50% of the company's stock.

Advanced Micro Devices Price Performance

NASDAQ:AMD opened at $473.25 on Friday. The firm has a market capitalization of $772.57 billion, a price-to-earnings ratio of 121.66 and a beta of 2.48. Advanced Micro Devices, Inc. has a 52-week low of $149.22 and a 52-week high of $584.73. The stock has a fifty day moving average of $511.40 and a 200 day moving average of $375.55. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The firm's revenue was up 50.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.48 earnings per share. On average, research analysts expect that Advanced Micro Devices, Inc. will post 6.44 EPS 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.

Want to see what other hedge funds are holding AMD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report).

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