New England Research & Management Inc. Acquires 3,783 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• New England Research & Management increased its AMD position by 796.4% in the third quarter, acquiring 3,783 additional shares for a total of 4,258 shares valued at approximately $2.84 million.
• AMD reported strong quarterly results, with revenue rising 50.1% year over year to $11.54 billion and earnings of $1.66 per share, exceeding analyst expectations.
• Despite a “Moderate Buy” consensus and a $603.51 average price target, AMD faces concerns over its elevated valuation, AI-spending sustainability and recent semiconductor-sector selling pressure; insiders sold more than $105 million of shares over the past 90 days.

New England Research & Management Inc. lifted its holdings in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 796.4% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 4,258 shares of the semiconductor manufacturer's stock after acquiring an additional 3,783 shares during the period. Advanced Micro Devices accounts for about 1.1% of New England Research & Management Inc.'s holdings, making the stock its 26th biggest position. New England Research & Management Inc.'s holdings in Advanced Micro Devices were worth $2,835,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of AMD. Intergy Private Wealth LLC raised its position in Advanced Micro Devices by 15.7% in the 3rd quarter. Intergy Private Wealth LLC now owns 691 shares of the semiconductor manufacturer's stock valued at $423,000 after purchasing an additional 94 shares during the last quarter. Guardian Asset Advisors LLC boosted its stake in Advanced Micro Devices by 10.0% during the 3rd quarter. Guardian Asset Advisors LLC now owns 605 shares of the semiconductor manufacturer's stock worth $370,000 after purchasing an additional 55 shares during the period. RKL Wealth Management LLC boosted its stake in Advanced Micro Devices by 17.0% during the 3rd quarter. RKL Wealth Management LLC now owns 1,949 shares of the semiconductor manufacturer's stock worth $1,192,000 after purchasing an additional 283 shares during the period. Hengehold Capital Management LLC grew its position in Advanced Micro Devices by 18.3% during the 3rd quarter. Hengehold Capital Management LLC now owns 1,311 shares of the semiconductor manufacturer's stock worth $802,000 after purchasing an additional 203 shares during the last quarter. Finally, Peak Financial Management Inc. grew its position in Advanced Micro Devices by 7.5% during the 3rd quarter. Peak Financial Management Inc. now owns 1,449 shares of the semiconductor manufacturer's stock worth $887,000 after purchasing an additional 101 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Stock Down 6.0%

AMD stock opened at $528.75 on Friday. Advanced Micro Devices, Inc. has a one year low of $188.22 and a one year high of $658.52. The stock has a market capitalization of $863.17 billion, a PE ratio of 135.93, a price-to-earnings-growth ratio of 5.46 and a beta of 2.45. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. The company has a fifty day moving average of $537.02 and a 200-day moving average of $472.22.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share 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 business had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the firm earned $0.48 earnings per share. The business's quarterly revenue was up 50.1% compared to the same quarter last year. As a group, analysts expect that Advanced Micro Devices, Inc. will post 6.49 EPS for the current year.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Arete raised its AMD price target to $612 from $540, while recent commentary highlighted the company’s expanding data-center business, AI accelerator opportunity and open Helion rack-scale architecture. Arete Adjusts Price Target on Advanced Micro Devices
• Positive Sentiment: AMD’s credit-support agreement for Fermi’s Texas data-center power lease is viewed as a potential AI infrastructure catalyst, although Fermi still faces liquidity and lease-related risks. AMD's Support Could Help Fermi Stock
• Neutral Sentiment: ETF investors were net sellers of AMD on October 14, adding to short-term trading pressure but offering little insight into the company’s operating outlook. ETFs Are Net Sellers of AMD
• Negative Sentiment: A broad semiconductor selloff intensified after a Qualcomm jury verdict, with Arm, AMD and Taiwan Semiconductor declining together. Investors are questioning whether AI infrastructure spending can sustain current expectations, particularly as elevated interest rates pressure richly valued growth stocks. Arm and AMD Fall as Qualcomm Verdict Adds to Chip Selloff
• Negative Sentiment: Analysts and investors are also reassessing AMD’s elevated valuation, AI financing risks and the sustainability of extremely high data-center spending. Reports of widespread insider selling may further weigh on sentiment, even though institutional ownership remains substantial. AMD Slides as Chip Selloff Continues

Wall Street Analyst Weigh In

A number of research firms have commented on AMD. William Blair restated a "market perform" rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Melius Research set a $660.00 target price on shares of Advanced Micro Devices in a report on Friday, July 24th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Advanced Micro Devices in a research note on Monday, October 5th. Mizuho increased their target price on shares of Advanced Micro Devices from $580.00 to $705.00 and gave the stock an "outperform" rating in a research note on Tuesday, October 6th. Finally, The Goldman Sachs Group raised their price target on Advanced Micro Devices from $450.00 to $640.00 and gave the stock a "buy" rating in a report on Monday, July 6th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $603.51.

Insider Activity

In other Advanced Micro Devices news, CEO Lisa T. Su sold 70,000 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the sale, the chief executive officer owned 3,032,156 shares of the company's stock, valued at approximately $1,536,696,660.80. The trade was a 2.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the sale, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. This represents a 11.30% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 213,838 shares of company stock valued at $105,533,836 over the last ninety days. 0.50% of the stock is currently owned by company insiders.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD's product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.

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