Vestor Capital LLC Makes New $120.73 Million Investment in Advanced Micro Devices, Inc. $AMD

Key Points

• Vestor Capital initiated a $120.73 million position in AMD, buying 197,348 shares in the third quarter. AMD now represents about 3.4% of its portfolio and is its sixth-largest holding.
• AMD reported quarterly EPS of $2.09, beating the $1.95 consensus, while revenue of $13.38 billion exceeded estimates and rose 44.7% year over year. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $642.47.
• AMD insiders sold 230,957 shares worth about $114.8 million over the past three months; company insiders own 0.50% of the stock.

Vestor Capital LLC purchased a new stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 197,348 shares of the semiconductor manufacturer's stock, valued at approximately $120,730,000. Advanced Micro Devices accounts for approximately 3.4% of Vestor Capital LLC's portfolio, making the stock its 6th largest holding.

Several other hedge funds and other institutional investors also recently made changes to their positions in AMD. BlackRock Inc. increased its position in Advanced Micro Devices by 3.1% in 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 during the period. State Street Corp lifted its holdings in shares of Advanced Micro Devices by 2.9% during the second 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 last quarter. Bank of America Corp DE bought a new stake in shares of Advanced Micro Devices in the second quarter valued at approximately $7,022,226,000. Jennison Associates LLC boosted its position in shares of Advanced Micro Devices by 5.8% in the second 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. Finally, Wellington Management Group LLP boosted its position in shares of Advanced Micro Devices by 33.9% in the second quarter. Wellington Management Group LLP now owns 9,334,396 shares of the semiconductor manufacturer's stock valued at $5,422,444,000 after acquiring an additional 2,365,419 shares during the period. 71.34% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Advanced Micro Devices

In other news, EVP Jean X. Hu sold 15,000 shares of the company's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the sale, 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 position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of Advanced Micro Devices stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the transaction, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. The trade was 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. In the last three months, insiders sold 230,957 shares of company stock worth $114,799,511. 0.50% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on AMD shares. Melius Research set a $650.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Zacks Research downgraded shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 1st. Rosenblatt Securities reissued a "buy" rating and set a $700.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, November 4th. Jefferies Financial Group restated a "buy" rating on shares of Advanced Micro Devices in a research note on Thursday, October 29th. Finally, Robert W. Baird set a $1,250.00 price target on Advanced Micro Devices in a report on Friday, July 24th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Advanced Micro Devices currently has an average rating of "Moderate Buy" and a consensus price target of $642.47.

Advanced Micro Devices Stock Performance

AMD stock opened at $508.58 on Tuesday. Advanced Micro Devices, Inc. has a twelve month low of $188.22 and a twelve month high of $658.52. The company has a quick ratio of 1.91, a current ratio of 2.72 and a debt-to-equity ratio of 0.10. The company has a market cap of $830.24 billion, a P/E ratio of 110.56, a price-to-earnings-growth ratio of 5.01 and a beta of 2.49. The business's fifty day moving average is $547.67 and its 200-day moving average is $416.28.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, topping analysts' consensus estimates of $1.95 by $0.14. The business had revenue of $13.38 billion during the quarter, compared to analysts' expectations of $13.10 billion. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The firm's quarterly revenue was up 44.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.20 earnings per share. Equities research analysts forecast that Advanced Micro Devices, Inc. will post 6.59 EPS for the current year.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: Google Cloud is using AMD’s 5th Gen EPYC processors for host infrastructure supporting its TPU 8tx system. The deal expands AMD’s role in large-scale AI infrastructure, although it is a CPU infrastructure win rather than a selection of AMD’s AI accelerators. AMD announcement on Google Cloud
• Positive Sentiment: Oppenheimer upgraded AMD to Outperform and set a $600 price target, citing accelerating sales and forecasting 135% data-center revenue growth next year. The call helped bolster confidence in AMD’s AI growth outlook. CNBC report on Oppenheimer upgrade
• Positive Sentiment: Recent quarterly results provided additional support: revenue rose 45% year over year, with data-center revenue up 97%, and management expects revenue growth to accelerate. A broader technology-sector rally also helped lift sentiment. Quarterly results and outlook
• Neutral Sentiment: AMD also benefited as investors looked for alternatives amid pressure on Nvidia, though analysts noted that chipmakers could face increased scrutiny of sales practices. MarketWatch analysis
• Negative Sentiment: A reported Radeon GPU bug affecting SSD lifespan is a product concern, although it did not prevent the rally. Commentary also flagged elevated valuation and rising inventory as risks to sustaining gains. TipRanks report on Radeon GPU bug

Advanced Micro Devices Profile

Advanced Micro Devices, Inc (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors.

The company's product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.

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