Advanced Micro Devices (AMD) Becomes Most Under-Owned US Semiconductor Stock Amid Strong Performance

Advanced Micro Devices (AMD) has become the most under-owned US semiconductor stock among active managers, with ownership falling to 20% in August from 39% a year earlier. Despite this, Bank of America reiterated its 'Buy' rating on AMD, citing strong tailwinds from AI adoption and sustained market share gains against Intel. AMD focuses on designing and developing semiconductors for data centers, client computing, gaming, and specialized applications.

Advanced Micro Devices (AMD) has emerged as the most under-owned U.S. semiconductor stock among active managers, according to Bank of America. Ownership of AMD among fund managers fell to 20% in August from 39% a year earlier AMD most under-owned chip stock despite sales growth outlook^[1]. Despite this, the company's shares have outperformed the sector this year, and Bank of America reiterated its 'Buy' rating on AMD AMD most under-owned chip stock despite sales growth outlook^[1].

The decline in ownership of AMD comes despite consensus forecasts calling for 22% sales growth for the company AMD most under-owned chip stock despite sales growth outlook^[1]. AMD's relative weighting versus the S&P 500 fell to 0.16 times, down 5% from the prior quarter and 80% year-on-year, making it the least-owned chipmaker in the index AMD most under-owned chip stock despite sales growth outlook^[1]. The decline in ownership did not deter Bank of America analysts from reiterating their 'Buy' rating, citing rising artificial intelligence (AI) demand and continued market share gains against Intel.

Nvidia remains the most widely held semiconductor stock, owned by 75% of fund managers, with a relative weighting of 1.11 times AMD most under-owned chip stock despite sales growth outlook^[1]. Broadcom, Synopsys, and KLA saw the biggest increases in ownership last quarter AMD most under-owned chip stock despite sales growth outlook^[1]. Semiconductor holdings overall were at 0.95 times relative weighting in August, down from 1.01 times at the end of 2024 but higher than the 0.90 times level cited in April AMD most under-owned chip stock despite sales growth outlook^[1].

AMD's focus on designing and developing semiconductors for data centers, client computing, gaming, and specialized applications positions it well to benefit from the growing demand for AI and other advanced technologies. The company's recent performance has been driven by strong sales and earnings growth, with analysts expecting further upside potential Advanced Micro Devices (AMD) Stock Forecast & Price ...^[3].

While AMD faces challenges such as high valuation and intense competition, its strategic positioning and strong fundamentals make it an attractive investment opportunity for those looking to capitalize on the semiconductor sector's growth. However, investors should remain cautious and conduct thorough due diligence before making any investment decisions.

References:
AMD most under-owned chip stock despite sales growth outlook^[1] https://finance.yahoo.com/news/amd-most-under-owned-chip-154517244.html
Advanced Micro Devices (AMD) Stock Forecast & Price ...^[3] https://www.tipranks.com/stocks/amd/forecast