AMD stock still under-owned by active managers: BofA

Investing.com -- Advanced Micro Devices (NASDAQ: AMD) remains “under-owned by active managers,” according to Bank of America, even as the stock continues to outperform on both a year-on-year and quarter-on-quarter basis.

In a note to clients, BofA analyst Vivek Arya said “active ownership remains at just 24% of fund managers, up QoQ from 20% in July but down significantly from Oct ’24 (38%).”

The analyst noted that AMD’s “relative weighting in October was just 0.19x (vs. 0.13x in July, 0.59x in Oct ’24),” underscoring continued underexposure among institutional investors.

Despite that low positioning, AMD saw one of the strongest gains in ownership in the quarter, rising “+438bps,” supported by “key industry customers,” BofA stated.

The bank maintains a Buy rating and a $300 price objective ahead of AMD’s Nov. 11 Analyst Day, where it expects management to “update their AI accelerator TAM & more.”

Across the broader semiconductor sector, Arya said relative weighting stood at 0.96x as of October, “up QoQ but down YTD.”

Meanwhile, Nvidia (NVDA) “continues to maintain the broadest ownership (76% of fund managers),” while Synopsys (SNPS) saw the greatest expansion in ownership, up 466 basis points following the completion of its $35 billion Ansys deal.

Arya also noted that the “greatest increases in depth/overweighting QoQ were in AMD (+43%), TER (+34%), and INTC (+21%),” signaling growing conviction in select names.

Still, the analyst highlighted that AMD remains “underweight despite 33% sales growth prospects per consensus” and significant stock performance momentum heading into year-end.

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