Palestra Capital Management LLC Invests $138.23 Million in Advanced Micro Devices, Inc. $AMD

Palestra Capital Management LLC acquired a new stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) in the 2nd quarter, HoldingsChannel reports. The fund acquired 237,958 shares of the semiconductor manufacturer’s stock, valued at approximately $138,232,000. Advanced Micro Devices makes up about 4.7% of Palestra Capital Management LLC’s investment portfolio, making the stock its 10th biggest holding.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth about $27,000. Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices in the 4th quarter valued at about $27,000. Basepoint Wealth LLC acquired a new stake in Advanced Micro Devices in the 4th quarter valued at about $30,000. Graney & King LLC bought a new position in Advanced Micro Devices during the first quarter worth about $31,000. Finally, Main Street Group LTD bought a new position in Advanced Micro Devices during the first quarter worth about $33,000. 71.34% of the stock is owned by institutional investors.

Insider Activity

In related news, EVP Paul Darren Grasby sold 15,000 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the transaction, the executive vice president directly owned 117,687 shares in the company, valued at approximately $60,598,213.17. This represents a 11.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Mark D. Papermaster sold 28,811 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the completion of the transaction, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% 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. Over the last ninety days, insiders have sold 241,203 shares of company stock worth $114,011,942. Corporate insiders own 0.50% of the company’s stock.

Advanced Micro Devices News Roundup

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

• Positive Sentiment: AI demand and product roadmap remain strong: AMD’s previously announced rack-scale platforms and server products are moving closer to deployment, supporting expectations for continued data-center growth. Recent results showed revenue up 50% year over year to $11.54 billion, while management guided to roughly $13 billion in third-quarter revenue. AMD stock ran its published roadmap
• Positive Sentiment: Strategic Nutanix partnership broadens AMD’s AI offering: AMD’s equity investment and joint development agreement with Nutanix could help deliver integrated, open AI inference systems that compete with Nvidia’s software-centric platform. AMD and Nutanix strategic partnership
• Neutral Sentiment: Analyst comparisons favor rivals on risk-reward: Commentary argues Broadcom offers better diversification and a lower valuation, while Nvidia’s stronger profitability, CUDA ecosystem and recent outperformance give it an advantage over AMD. These comparisons may limit enthusiasm despite AMD’s growth prospects. Broadcom versus AMD risk-reward comparison
• Negative Sentiment: Potential tariffs increase cost and supply-chain risk: Reports that the administration may extend semiconductor tariffs to products containing chips, including data-center servers, have raised concerns about higher costs and disrupted hardware supply chains. Why AMD stock is sliding
• Negative Sentiment: Profit-taking and selling activity weigh on sentiment: ARK Invest sold approximately $18 million of AMD shares while reallocating capital to Broadcom and Cerebras. AMD EVP Jean Hu also sold $7.1 million of stock under a pre-arranged Rule 10b5-1 plan, although she retained a substantial position. Cathie Wood sold AMD stock

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. BMO Capital Markets assumed coverage on Advanced Micro Devices in a research note on Thursday, August 20th. They issued an “outperform” rating and a $550.00 price objective on the stock. Wolfe Research set a $450.00 target price on Advanced Micro Devices and gave the stock an “outperform” rating in a report on Monday, June 15th. Morgan Stanley increased their price target on Advanced Micro Devices from $410.00 to $465.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 5th. Wells Fargo & Company raised their price target on Advanced Micro Devices from $615.00 to $700.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Finally, Stifel Nicolaus lifted their price objective on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Four research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Advanced Micro Devices presently has an average rating of “Moderate Buy” and an average price target of $553.72.

Advanced Micro Devices Price Performance

Advanced Micro Devices stock opened at $465.58 on Monday. The company has a market capitalization of $760.05 billion, a price-to-earnings ratio of 119.69 and a beta of 2.48. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. Advanced Micro Devices, Inc. has a 12 month low of $149.22 and a 12 month high of $584.73. The stock’s 50 day moving average is $505.66 and its 200-day moving average is $385.61.

Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.04. The business had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The firm’s revenue for the quarter was up 50.1% compared to the same quarter last year. During the same period last year, the firm posted $0.48 EPS. Equities research analysts expect that Advanced Micro Devices, Inc. will post 6.44 EPS for the current year.

Advanced Micro Devices 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.