TOWER TRUST & INVESTMENT Co Cuts Holdings in Advanced Micro Devices, Inc. $AMD

Key Points

• TOWER TRUST & INVESTMENT Co. reduced its AMD stake by 14.2% in the second quarter, selling 1,266 shares and retaining 7,655 shares worth approximately $4.45 million. AMD represents about 2.7% of the firm’s portfolio and is its 10th-largest holding.
• AMD reported strong second-quarter results, with revenue rising 50.1% year over year to $11.54 billion and EPS of $1.66, exceeding analyst estimates. Data-center growth and the planned acquisition of AI-chip startup Taalas support the company’s AI expansion strategy.
• Despite a consensus “Moderate Buy” rating and an average price target of $546.87, AMD’s valuation remains a concern, with a P/E ratio near 124. Analysts and investors continue to weigh its AI growth potential against Nvidia’s competitive lead and slowing client and gaming businesses.

TOWER TRUST & INVESTMENT Co lessened its stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 14.2% during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 7,655 shares of the semiconductor manufacturer's stock after selling 1,266 shares during the period. Advanced Micro Devices makes up approximately 2.7% of TOWER TRUST & INVESTMENT Co's holdings, making the stock its 10th largest holding. TOWER TRUST & INVESTMENT Co's holdings in Advanced Micro Devices were worth $4,447,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of AMD. Joseph Group Capital Management bought a new position in Advanced Micro Devices during the fourth quarter valued at $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices in the 4th quarter worth about $27,000. Sarver Vrooman Wealth Advisors purchased a new position in shares of Advanced Micro Devices during the 4th quarter worth about $27,000. Basepoint Wealth LLC purchased a new position in shares of Advanced Micro Devices during the 4th quarter worth about $30,000. Finally, Graney & King LLC bought a new position in Advanced Micro Devices during the 1st quarter valued at about $31,000. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Stock Performance

Shares of NASDAQ:AMD opened at $483.36 on Monday. The firm's 50 day simple moving average is $514.56 and its 200-day simple moving average is $360.00. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. Advanced Micro Devices, Inc. has a one year low of $149.22 and a one year high of $584.73. The firm has a market cap of $789.07 billion, a PE ratio of 124.26 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the previous year, the business earned $0.48 earnings per share. Advanced Micro Devices's quarterly revenue was up 50.1% on a year-over-year basis. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 6.38 EPS for the current year.

Advanced Micro Devices News Summary

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

• Positive Sentiment: AMD agreed to acquire Toronto-based AI-inference chip startup Taalas for an undisclosed amount. Taalas develops specialized silicon designed to reduce computing and memory bottlenecks, and AMD plans to integrate the technology with its Instinct GPUs. The deal could improve AMD’s inference performance and strengthen its challenge to Nvidia in a rapidly expanding market. AMD deepens AI inference bet with Taalas deal as chip race heats up
• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, and adjusted earnings of $1.66 per share, exceeding consensus estimates. Data Center revenue more than doubled, while management raised its outlook, reinforcing the long-term AI growth case. AMD tops Q2 earnings estimates and provides strong outlook
• Positive Sentiment: Several analysts remain constructive: Rosenblatt raised its price target to $700 with a buy rating, while JPMorgan lifted its target to $550 but retained a neutral rating. Recent institutional filings also showed sizable increases in AMD holdings by PNC Financial and GF Fund Management. AMD analyst price-target changes
• Neutral Sentiment: Investors continue to debate whether AMD can become a major Nvidia alternative. Optimistic views point to data-center demand, AI deployments and supply leverage, but the stock’s high valuation means additional upside likely requires sustained execution and accelerating growth. This Could Be One of the Best Opportunities to Buy AMD Stock in Months
• Negative Sentiment: AMD’s results and guidance, although strong, did not clear an exceptionally high AI-growth bar. Investors wanted stronger evidence of accelerating AI revenue, higher margins and a faster path to closing Nvidia’s competitive lead. Why AMD’s solid quarterly earnings failed to impress investors
• Negative Sentiment: Near-term concerns include slowing growth in AMD’s client and gaming businesses and intensifying Nvidia competition. SpaceX’s selection of Nvidia rather than AMD for an AI-chip partnership further underscored concerns about Nvidia’s customer and ecosystem advantages. AMD stock falls after record quarter as SpaceX picks Nvidia
• Negative Sentiment: At roughly 124 times earnings, AMD leaves little room for disappointment. The combination of lofty expectations, post-earnings profit-taking and increased short interest contributed to the weaker investor reaction despite the earnings beat. AMD short volume hits a two-week high

Insider Transactions at Advanced Micro Devices

In related news, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value 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. The trade was a 9.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Mark D. Papermaster sold 6,000 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $536.33, for a total transaction of $3,217,980.00. Following the completion of the sale, the executive vice president directly owned 1,233,687 shares of the company's stock, valued at approximately $661,663,348.71. This trade represents a 0.48% decrease in their ownership of the stock. 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. Insiders have sold a total of 285,934 shares of company stock valued at $130,353,006 over the last 90 days. 0.50% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

AMD has been the subject of several analyst reports. Wall Street Zen raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Monday, July 20th. DA Davidson upped their target price on Advanced Micro Devices from $425.00 to $550.00 and gave the company a "buy" rating in a research note on Wednesday. HSBC downgraded Advanced Micro Devices from a "buy" rating to a "hold" rating and increased their price target for the stock from $335.00 to $340.00 in a report on Monday, May 4th. Wells Fargo & Company boosted their price objective on Advanced Micro Devices from $615.00 to $700.00 and gave the company an "overweight" rating in a report on Wednesday. Finally, Benchmark upped their price objective on Advanced Micro Devices from $485.00 to $685.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $546.87.

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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