CCM Investment Advisers Initiate AMD Stake, Is the Stock a Buy?

CCM Investment Advisers initiated a stake of 68,820 shares in AMD, valued at $11.13 million as of September 30, 2025. The AMD stake accounts for 1.1% of CCM's 13F assets and is outside the fund's top five holdings. AMD's forward price-to-earnings ratio is 28.57, and its enterprise value to EBITDA multiple is 48.83 as of October 10, 2025.

In a significant move, CCM Investment Advisers has initiated a position in AMD, purchasing 68,820 shares valued at $11.13 million as of September 30, 2025. This stake represents 1.1% of CCM's 13F assets and is outside the fund's top five holdings Nvidia’s $4 Trillion Juggernaut vs AMD’s OpenAI Jackpot – Inside 2025’s Epic AI Stock Showdown^[1]. The move comes amidst the escalating AI stock rivalry between Nvidia and AMD, with both companies experiencing unprecedented growth driven by AI chip demand.

AMD's forward price-to-earnings ratio stands at 28.57, and its enterprise value to EBITDA multiple is 48.83 as of October 10, 2025 . The company's recent stock performance has been remarkable, with shares rising around 50–60% year-to-date, reaching new multi-year highs around $230–$235 per share . This surge can be attributed to AMD's strategic partnership with OpenAI, which is expected to deliver "tens of billions" in annual revenue and includes warrants for OpenAI to buy up to 10% of AMD's shares at $0.01 each .

In contrast, Nvidia has seen its stock explode to all-time highs, briefly exceeding a $4 trillion market capitalization. Shares have traded around $192–$195, roughly triple their value from a year ago . Nvidia's dominance in the AI and graphics processor market is evident, with its CUDA ecosystem commanding roughly 90–94% of the GPU market . The company's revenue last quarter surged 56% year-over-year to $46.7 billion at lofty 72% gross margins .

While Nvidia remains the market leader, AMD is rapidly emerging as a credible challenger. Its new MI300X accelerators are being tested by major players like Meta, Microsoft, and Oracle, and the OpenAI win has instantly raised AMD's profile as an alternative supplier in AI chips . AMD is leveraging an open-platform approach to court customers wary of Nvidia's more proprietary model .

Both stocks carry premium valuations on AI hype, with Nvidia trading around 50× earnings and AMD about 90× (trailing P/E) . Wall Street remains broadly bullish on both companies' prospects, with 38 of 45 analysts rating Nvidia a "Buy" and AMD enjoying a "Strong Buy" consensus . However, even supporters warn that today's prices "bake in" perfection, and any stumble could trigger sharp pullbacks .

The AI chip dominance battle between Nvidia and AMD is a key driver of stock performance, with the AI boom in data centers being the primary growth opportunity. CCM's investment in AMD reflects the fund's belief in the company's potential to capitalize on this growth. As the AI landscape continues to evolve, investors will closely monitor the performance of both Nvidia and AMD to gauge their ability to maintain their market positions and drive future growth.