Northwestern Mutual Wealth Management Co. Trims Stock Position in Advanced Micro Devices, Inc. $AMD

Key Points

• Northwestern Mutual Wealth Management cut its AMD stake by 24.9% in the second quarter, selling 158,957 shares and retaining 480,509 shares valued at approximately $279.1 million.
• Institutional ownership remains substantial at 71.34%, with BlackRock increasing its position and Wellington Management sharply expanding its holdings. Analysts maintain a “Moderate Buy” consensus with an average price target of $553.72.
• AMD reported strong quarterly results, including revenue growth of 50.1% year over year and earnings above expectations, but the stock’s high valuation—about 117.5 times earnings—along with insider selling and execution concerns relative to Nvidia present risks.

Northwestern Mutual Wealth Management Co. reduced its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 24.9% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 480,509 shares of the semiconductor manufacturer's stock after selling 158,957 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in Advanced Micro Devices were worth $279,133,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Norges Bank acquired a new position in shares of Advanced Micro Devices during the fourth quarter worth about $4,929,312,000. Bank of America Corp DE purchased a new stake in Advanced Micro Devices in the 2nd quarter valued at approximately $7,022,226,000. Cardano Risk Management B.V. acquired a new position in Advanced Micro Devices during the 4th quarter worth approximately $1,000,783,000. BlackRock Inc. raised its stake in shares of Advanced Micro Devices by 3.1% during the 2nd quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock worth $87,311,650,000 after buying an additional 4,535,126 shares in the last quarter. Finally, Wellington Management Group LLP lifted its holdings in shares of Advanced Micro Devices by 335.9% in the 3rd quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer's stock valued at $784,330,000 after buying an additional 3,735,807 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have issued reports on AMD. Bank of America increased their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Raymond James Financial raised shares of Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and upped their price target for the stock from $565.00 to $641.00 in a research note on Tuesday, August 25th. Evercore reiterated an "outperform" rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a research note on Tuesday, May 19th. Wedbush restated an "outperform" rating and set a $600.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, BTIG Research upgraded shares of Advanced Micro Devices to a "buy" rating in a research report on Wednesday, May 6th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and an average target price of $553.72.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD’s AI infrastructure collaboration with Cisco and Saudi Arabia’s HUMAIN is gaining traction: MI355X-based systems are reportedly live and serving customers, with plans for an additional 250 megawatts beginning in 2027 and as much as 1 gigawatt by 2030. The buildout could create a significant long-term data-center revenue opportunity. AMD Saudi Arabia AI infrastructure
• Positive Sentiment: Several bullish commentaries argue that AMD could benefit from the next phase of AI spending, particularly inference workloads and server CPUs. One forecast sees the company potentially reaching a $2 trillion valuation by 2030, while analysts cited elsewhere see additional upside from current levels. AMD $2 trillion forecast
• Positive Sentiment: Tiger Global reportedly opened an AMD position while reducing its Alphabet stake, suggesting some institutional investors are rotating toward AI-chip exposure. Tiger Global AMD position
• Neutral Sentiment: AMD remains above a widely watched support level near $450, but technical coverage says higher U.S. interest rates are weighing on high-growth technology stocks and limiting near-term momentum. AMD technical levels and rates
• Negative Sentiment: J.P. Morgan reportedly views AMD as facing execution challenges relative to Nvidia. Nvidia’s investment in MediaTek and continued efforts to defend its AI-chip ecosystem also reinforce concerns that AMD must execute effectively to gain share. J.P. Morgan Nvidia versus AMD
• Negative Sentiment: Investors are also taking profits after AMD’s substantial 2026 advance. Commentary highlights valuation pressure, with the stock trading at a very high earnings multiple, while ARK Invest has continued reducing its AMD position. ARK Invest reduces AMD shares

Advanced Micro Devices Price Performance

Advanced Micro Devices stock opened at $457.06 on Thursday. Advanced Micro Devices, Inc. has a 12-month low of $149.22 and a 12-month high of $584.73. The firm's 50-day moving average is $501.61 and its two-hundred day moving average is $390.93. The stock has a market capitalization of $746.14 billion, a P/E ratio of 117.50, a P/E/G ratio of 4.76 and a beta of 2.48. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly 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 return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the previous year, the firm posted $0.48 EPS. Advanced Micro Devices's revenue was up 50.1% on a year-over-year basis. Equities analysts predict that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current year.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction 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 owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 15,000 shares of the business's stock in a transaction dated 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 sale, the executive vice president directly owned 117,687 shares of the company's stock, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 232,577 shares of company stock valued at $109,509,170 over the last 90 days. 0.50% of the stock is currently owned by insiders.

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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