Nicholas Wealth LLC. Cuts Holdings in Advanced Micro Devices, Inc. $AMD

Key Points

• Nicholas Wealth LLC cut its AMD stake by 31.4% in the first quarter, selling 2,346 shares and ending with 5,123 shares worth about $1.04 million.
• AMD’s recent operating results were strong, with Q1 earnings of $1.37 per share on revenue of $10.25 billion, both beating analyst expectations; revenue also rose 37.8% year over year.
• Wall Street remains broadly bullish on AMD, with several firms raising price targets and the stock now carrying a Moderate Buy consensus, though concerns about valuation and a recent pullback in AI chip names persist.

Nicholas Wealth LLC. trimmed its position in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 31.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 5,123 shares of the semiconductor manufacturer's stock after selling 2,346 shares during the quarter. Nicholas Wealth LLC.'s holdings in Advanced Micro Devices were worth $1,042,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in AMD. Joseph Group Capital Management bought a new stake in Advanced Micro Devices in the 4th quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new position in shares of Advanced Micro Devices during the 4th quarter valued at approximately $27,000. Sarver Vrooman Wealth Advisors bought a new position in shares of Advanced Micro Devices during the 4th quarter valued at approximately $27,000. Basepoint Wealth LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at $30,000. Finally, Wilkerson Advisory Group LLC purchased a new position in shares of Advanced Micro Devices in the fourth quarter valued at $33,000. 71.34% of the stock is owned by institutional investors.

Key Advanced Micro Devices News

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

• Positive Sentiment: Wall Street sentiment remains upbeat, with multiple analysts raising AMD price targets in June, including a street-high call from UBS, as firms increasingly view AMD as a bigger player in AI infrastructure and data center CPUs.
• Positive Sentiment: AMD continues to gain credibility in enterprise AI, including recognition from Gartner as a leading server CPU company, which supports the long-term growth case for its data center business. Article Title
• Positive Sentiment: New business wins are also helping sentiment, including a definitive agreement with Rackspace Technology to deploy AMD-based infrastructure, reinforcing demand for AMD chips in cloud and enterprise workloads. Article Title
• Positive Sentiment: Several recent articles argue AMD still has meaningful upside as investors focus on its CPU and AI data center growth, with some bullish commentary suggesting the market may still be underappreciating its long-term earnings power.
• Neutral Sentiment: One recent piece highlighted both the positives and a caution on AMD, noting the stock’s huge six-month run and suggesting investors should stay aware of valuation risk after such a strong rally.
• Negative Sentiment: The semiconductor group has also been under pressure today, with AI chip names, including AMD, softening as momentum in the sector cools and investors rotate out of the space. Article Title
• Negative Sentiment: Bearish/neutral valuation commentary has also picked up, with some coverage questioning whether AMD’s rapid stock gains have already priced in a lot of future growth, which can weigh on the shares in the short term.

Advanced Micro Devices Stock Down 2.1%

Shares of AMD opened at $521.58 on Friday. 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 business has a fifty day moving average of $445.21 and a 200 day moving average of $296.11. The company has a market cap of $850.49 billion, a PE ratio of 171.01, a P/E/G ratio of 1.54 and a beta of 2.50. Advanced Micro Devices, Inc. has a 52-week low of $133.50 and a 52-week high of $562.99.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted 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. 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 for the quarter, compared to analysts' expectations of $9.90 billion. During the same quarter in the previous year, the business posted $0.96 earnings per share. The business's revenue was up 37.8% compared to the same quarter last year. On average, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on AMD shares. Seaport Research Partners raised shares of Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price target on the stock in a research note on Wednesday, May 6th. Wedbush lifted their price objective on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the stock an "outperform" rating in a research note on Monday, May 4th. Oppenheimer downgraded shares of Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a report on Wednesday, May 6th. Erste Group Bank upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Thursday, April 2nd. Finally, Mizuho increased their price target on shares of Advanced Micro Devices from $515.00 to $615.00 and gave the company an "outperform" rating in a report on Monday, June 1st. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $440.41.

Insider Activity

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,487 shares of the firm's 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 sale, the executive vice president owned 324,527 shares of the company's stock, valued at $140,000,947.80. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares of the company's stock, valued at $1,334,572,400.31. This trade represents a 4.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 378,032 shares of company stock worth $161,876,596 in the last 90 days. Company insiders own 0.50% of the company's stock.

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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