Professional Advisory Services Inc. Sells 8,151 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• Professional Advisory Services Inc. cut its AMD position by 16% in the third quarter, selling 8,151 shares and retaining 42,916 shares valued at approximately $26.3 million.
• Institutional investors own 71.34% of AMD, while analysts maintain a “Moderate Buy” consensus with an average price target of $585.26; recent targets range as high as $700.
• AMD’s latest quarter exceeded expectations, with revenue rising 50.1% year over year to $11.54 billion, but the stock’s elevated valuation, insider selling and broader pressure on AI stocks remain key risks.

Professional Advisory Services Inc. lowered its position in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 16.0% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 42,916 shares of the semiconductor manufacturer's stock after selling 8,151 shares during the quarter. Advanced Micro Devices makes up about 3.1% of Professional Advisory Services Inc.'s investment portfolio, making the stock its 15th largest holding. Professional Advisory Services Inc.'s holdings in Advanced Micro Devices were worth $26,254,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of the business. BlackRock Inc. boosted its position in Advanced Micro Devices by 3.1% during the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer's stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. State Street Corp boosted its holdings in shares of Advanced Micro Devices by 2.9% during the 2nd quarter. State Street Corp now owns 76,920,783 shares of the semiconductor manufacturer's stock worth $46,606,266,000 after buying an additional 2,149,563 shares during the period. Invesco Ltd. grew its stake in Advanced Micro Devices by 15.9% in the 4th quarter. Invesco Ltd. now owns 15,473,280 shares of the semiconductor manufacturer's stock valued at $3,313,758,000 after buying an additional 2,124,867 shares during the last quarter. Bank of America Corp DE bought a new position in Advanced Micro Devices in the 2nd quarter valued at about $7,022,226,000. Finally, Jennison Associates LLC raised its holdings in Advanced Micro Devices by 5.8% in the 2nd quarter. Jennison Associates LLC now owns 9,972,952 shares of the semiconductor manufacturer's stock valued at $5,793,388,000 after acquiring an additional 545,575 shares during the period. Institutional investors and hedge funds own 71.34% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on AMD shares. Wedbush restated an "outperform" rating and issued a $600.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Jefferies Financial Group set a $650.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Stifel Nicolaus upped their price target on shares of Advanced Micro Devices from $635.00 to $700.00 and gave the company a "buy" rating in a research note on Monday. Susquehanna lifted their price objective on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the stock a "positive" rating in a research note on Thursday, July 30th. Finally, TD Cowen restated a "buy" rating on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $585.26.

Key Advanced Micro Devices News

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

• Positive Sentiment: AMD’s data-center revenue reportedly increased 107% year over year to $6.7 billion, underscoring strong demand for its AI accelerators and server processors. Global AI infrastructure spending is also expected to remain substantial. AMD Stock: Drops Despite Record Revenue and Surging AI Data Center Demand
• Positive Sentiment: TSMC reported record quarterly revenue, up 50% year over year, signaling that demand for advanced chips used by AMD and other AI companies remains robust. Nvidia, AMD, Intel Stocks Despite Record AI Demand
• Positive Sentiment: CEO Lisa Su’s meetings with Samsung and SK Hynix could improve AMD’s access to memory and manufacturing capacity as AI supply constraints persist. AMD CEO Says Continues to Explore Foundry Partnership With Samsung
• Positive Sentiment: Analysts remain constructive: BNP Paribas identified further upside from AMD’s CPU, AI accelerator and inference-chip opportunities, while Citi recently raised its price target. AMD Stock Isn’t Undervalued, but Wall Street May Be Underestimating a Key Opportunity
• Neutral Sentiment: AMD scheduled its third-quarter earnings report for November 3. Investors may remain cautious ahead of the release, which will provide an important test of AI demand, supply expansion and forward guidance. AMD Stock Slips Despite Setting a Date for Q3 Earnings
• Negative Sentiment: Higher bond yields and oil prices are pressuring richly valued growth and AI stocks, prompting investors to rotate out of semiconductor names across the sector. Why Are Intel and AMD Stocks Plunging on Thursday?
• Negative Sentiment: AMD’s valuation leaves little room for execution setbacks after its sharp rally. Concerns include whether future AI commitments will translate into repeat deployments, cash flow and sustainable margins. AMD’s Valuation Is Starting to Ruffle Feathers on Wall Street
• Negative Sentiment: Reported insider activity shows substantial selling and no open-market purchases over the past six months, adding to investor caution even though such sales may reflect scheduled diversification.

Advanced Micro Devices Price Performance

Shares of AMD traded down $25.18 during mid-day trading on Thursday, reaching $620.68. The company had a trading volume of 23,402,461 shares, compared to its average volume of 32,602,393. The company has a market capitalization of $1.01 trillion, a price-to-earnings ratio of 159.56, a P/E/G ratio of 6.73 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's 50 day simple moving average is $526.31 and its 200 day simple moving average is $458.39. Advanced Micro Devices, Inc. has a 1-year low of $188.22 and a 1-year high of $658.52.

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 (EPS) for the quarter, topping analysts' consensus estimates 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 business had revenue of $11.54 billion during the quarter, compared to analysts' expectations of $11.31 billion. During the same quarter in the prior year, the firm earned $0.48 EPS. The business's revenue for the quarter was up 50.1% compared to the same quarter last year. Analysts expect that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Insider Activity

In related news, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total transaction of $7,111,200.00. Following the transaction, the executive vice president directly owned 160,979 shares of the company's stock, valued at $76,316,924.32. This represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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, CEO Lisa T. Su sold 25,000 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the completion of the sale, the chief executive officer owned 74,211 shares of the company's stock, valued at $37,609,392.69. The trade was a 25.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 213,838 shares of company stock worth $105,533,836. 0.50% of the stock is owned by insiders.

Advanced Micro Devices Company Profile

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

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.