Southpoint Capital Advisors LP Buys 300,000 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• Southpoint Capital Advisors increased its AMD stake by 50% in the first quarter, buying 300,000 additional shares for a total of 900,000 shares valued at approximately $183.1 million.
• Analyst sentiment remains positive, with multiple firms raising price targets; AMD has a consensus “Moderate Buy” rating and an average target of $528.11.
• AMD reported stronger-than-expected quarterly results, including $1.37 in adjusted EPS and $10.25 billion in revenue, though its high valuation and substantial recent insider selling remain potential risks.

Southpoint Capital Advisors LP increased its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 50.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 900,000 shares of the semiconductor manufacturer's stock after purchasing an additional 300,000 shares during the quarter. Advanced Micro Devices makes up about 3.8% of Southpoint Capital Advisors LP's portfolio, making the stock its 12th largest holding. Southpoint Capital Advisors LP owned about 0.06% of Advanced Micro Devices worth $183,087,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Advanced Micro Devices by 12.8% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer's stock valued at $43,000 after acquiring an additional 24 shares in the last quarter. CLG LLC grew its position in Advanced Micro Devices by 3.1% during the 1st quarter. CLG LLC now owns 1,008 shares of the semiconductor manufacturer's stock worth $205,000 after acquiring an additional 30 shares during the last quarter. Columbia Bank increased its holdings in Advanced Micro Devices by 0.7% in the 1st quarter. Columbia Bank now owns 5,188 shares of the semiconductor manufacturer's stock worth $1,055,000 after purchasing an additional 34 shares in the last quarter. Evolution Wealth Management Inc. raised its position in Advanced Micro Devices by 11.0% in the first quarter. Evolution Wealth Management Inc. now owns 352 shares of the semiconductor manufacturer's stock valued at $72,000 after purchasing an additional 35 shares during the last quarter. Finally, Focused Wealth Management Inc raised its position in Advanced Micro Devices by 2.7% in the first quarter. Focused Wealth Management Inc now owns 1,431 shares of the semiconductor manufacturer's stock valued at $291,000 after purchasing an additional 37 shares during the last quarter. Institutional investors own 71.34% of the company's stock.

Analyst Upgrades and Downgrades

AMD has been the topic of a number of recent research reports. Benchmark lifted their price target on Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. Wall Street Zen raised Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Monday, July 20th. Bank of America raised their price objective on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Robert W. Baird set a $1,250.00 target price on shares of Advanced Micro Devices in a research report on Friday. Finally, KeyCorp upped their price target on shares of Advanced Micro Devices from $530.00 to $725.00 and gave the company an "overweight" rating in a research report on Tuesday, July 14th. Two research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and an average price target of $528.11.

Advanced Micro Devices Price Performance

Advanced Micro Devices stock opened at $494.95 on Tuesday. The stock's 50 day moving average is $514.08 and its 200 day moving average is $343.51. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The firm has a market cap of $807.07 billion, a P/E ratio of 162.28 and a beta of 2.47. Advanced Micro Devices, Inc. has a one year low of $149.22 and a one year high of $584.73.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results 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 during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the prior year, the firm posted $0.96 EPS. The company's revenue for the quarter was up 37.8% compared to the same quarter last year. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.27 EPS for the current year.

More Advanced Micro Devices News

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

• Positive Sentiment: Analysts raised targets following AMD’s Advancing AI event. Mizuho cited potential upside from AMD’s Helios rack-scale systems and upcoming Venice server CPUs, while Wedbush raised its target to $600 and Baird reportedly doubled its target to $1,250, reflecting confidence in AMD’s ability to gain share in AI infrastructure. Mizuho Lifts AMD Stock Price Target
• Positive Sentiment: AMD is positioning itself as a full AI-systems provider. Helios rack systems, the Venice CPU platform, and a new disaggregated inference architecture developed with Cerebras could help AMD compete more directly with Nvidia in enterprise and hyperscale AI deployments. Partnerships involving Microsoft and Anthropic further support the company’s strategy of selling integrated CPUs, GPUs, networking, and rack-level systems. AMD and Cerebras Create a New Blueprint for Hardware
• Positive Sentiment: The long-term growth outlook remains aggressive. Commentary suggests AMD could exceed CEO Lisa Su’s prior $100 billion revenue ambition earlier than expected if hyperscaler AI spending continues and customers seek a second major supplier to Nvidia. AMD Revenue Outlook
• Neutral Sentiment: AMD’s valuation leaves the stock sensitive to expectations. With a market capitalization above $800 billion and a very high earnings multiple, investors appear to be demanding continued exceptional execution. The company’s upcoming earnings report will be important for validating AI demand, supply availability, and forward guidance.
• Negative Sentiment: Broad semiconductor selling overwhelmed company-specific positives. AMD and other chip stocks came under pressure amid concerns about elevated GPU prices, the sustainability of AI spending, and reports of China advancing domestic lithography and memory production. Sector-wide technical and fund-driven selling added to the pressure. Chip Stocks Slide on China Semiconductor Progress
• Negative Sentiment: Reported insider activity is a cautionary signal. Quiver data shows AMD insiders made numerous sales, including transactions by CEO Lisa Su, with no open-market purchases during the period reviewed. While sales may reflect compensation or diversification, the pattern can weigh on sentiment.

Insider Buying and Selling

In other news, Director Nora Denzel sold 8,626 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the completion of the sale, the director directly owned 87,173 shares in the company, valued at $45,504,306. This represents a 9.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction 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 directly owned 324,527 shares of the company's stock, valued at $140,000,947.80. This represents a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 310,310 shares of company stock worth $141,185,456. Corporate insiders own 0.50% of the company's stock.

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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