Pacific Excel Wealth Advisors Inc. Makes New Investment in Advanced Micro Devices, Inc. $AMD

Key Points

• Pacific Excel Wealth Advisors acquired 1,984 AMD shares worth approximately $1.15 million during the second quarter. Institutional investors and hedge funds collectively own 71.34% of AMD.
• AMD reported stronger-than-expected second-quarter results, with adjusted EPS of $1.66 and revenue of $11.54 billion, up 50.1% year over year. Data-center revenue more than doubled to $6.7 billion, while third-quarter revenue guidance of $12.7 billion to $13.3 billion exceeded analyst expectations.
• Despite strong growth and mostly bullish analyst ratings, AMD’s valuation—about 170 times trailing earnings—has raised concerns that high expectations are already priced in. Insiders sold roughly $141.2 million of stock over the past 90 days.

Pacific Excel Wealth Advisors Inc. purchased a new stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,984 shares of the semiconductor manufacturer's stock, valued at approximately $1,153,000.

A number of other hedge funds and other institutional investors have also modified their holdings of AMD. Joseph Group Capital Management acquired a new stake in shares of Advanced Micro Devices in the 4th quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Advanced Micro Devices during the fourth quarter valued at $27,000. Sarver Vrooman Wealth Advisors bought a new position in Advanced Micro Devices in the fourth quarter valued at about $27,000. Basepoint Wealth LLC acquired a new stake in Advanced Micro Devices in the fourth quarter worth about $30,000. Finally, Graney & King LLC bought a new stake in Advanced Micro Devices during the 1st quarter worth about $31,000. Institutional investors and hedge funds own 71.34% of the company's stock.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: AMD reported second-quarter adjusted EPS of $1.66, ahead of the $1.61 consensus estimate, while revenue rose 50.1% year over year to $11.54 billion, exceeding the $11.31 billion forecast. AMD Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Data-center revenue reportedly more than doubled to a record $6.7 billion, reinforcing the AI-infrastructure growth story and AMD’s efforts to compete with Nvidia in GPUs, CPUs and rack-scale systems. AMD Revenue Climbs 50% and Data Center Sales Doubled
• Positive Sentiment: Third-quarter revenue guidance of $12.7 billion to $13.3 billion exceeded the approximately $12.4 billion analyst consensus, indicating continued demand for AI and data-center products. AMD Forecasts Upbeat Revenue on AI Data-Center Demand
• Neutral Sentiment: A broad risk-on rally lifted the semiconductor sector, with gains in Nvidia, Intel, Broadcom and Marvell providing a favorable backdrop for AMD before earnings. Chip Stocks Ride a Risk-On Rally
• Negative Sentiment: Investors viewed the quarterly beat as modest relative to AMD’s rally and valuation—roughly 170 times trailing earnings in the supplied data—raising concerns that expectations had already priced in exceptional execution. AMD Reported Record Sales but Stock Fell
• Negative Sentiment: Commentary also highlighted potentially “shocking” capital spending and continuing insider selling; data supplied by Quiver shows 99 insider sales and no purchases over the past six months. These signals may have amplified profit-taking after the release. AMD Stock Falls on Q2 Earnings

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,487 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the transaction, the executive vice president owned 324,527 shares of the company's stock, valued at $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 6,000 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the completion of the sale, the executive vice president owned 1,233,687 shares in the company, valued at approximately $661,663,348.71. This trade represents a 0.48% 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 310,310 shares of company stock worth $141,185,456 over the last ninety days. Company insiders own 0.50% of the company's stock.

Advanced Micro Devices Stock Performance

AMD opened at $518.58 on Wednesday. The company has a market capitalization of $845.60 billion, a price-to-earnings ratio of 170.03 and a beta of 2.48. The business's 50-day moving average price is $516.06 and its two-hundred day moving average price is $354.63. Advanced Micro Devices, Inc. has a 1 year low of $149.22 and a 1 year high of $584.73. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The business had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the previous year, the firm posted $0.48 earnings per share. The firm's revenue for the quarter was up 50.1% on a year-over-year basis. Equities analysts expect that Advanced Micro Devices, Inc. will post 6.27 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on AMD. Stifel Nicolaus increased their price objective on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the company a "buy" rating in a report on Friday, July 10th. Benchmark upped their target price on shares of Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Rosenblatt Securities reissued a "buy" rating and issued a $665.00 price target on shares of Advanced Micro Devices in a research note on Friday, July 24th. Jefferies Financial Group lifted their price objective on Advanced Micro Devices from $515.00 to $640.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Finally, Truist Financial set a $478.00 target price on Advanced Micro Devices in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and a consensus target price of $529.46.

Advanced Micro Devices Company 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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