Advanced Micro Devices (AMD) Loses Big For Second Straight Day, Are Investors Right To Flee?

Hedge fund activity in Advanced Micro Devices, Inc. (NYSE:AMD)

With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings substantially.

When looking at the hedgies followed by Insider Monkey, David E. Shaw‘s D E Shaw had the biggest position in Advanced Micro Devices, Inc. (NYSE:AMD), worth close to $13 million, comprising less than 0.1% of its total 13F portfolio. The second-largest stake is held by Joel Greenblatt of Gotham Asset Management, with an $8.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism comprise Dmitry Balyasny’s Balyasny Asset Management, Ken Griffin’s Citadel Investment Group, and Cliff Asness‘ AQR Capital Management.

To conclude, Advanced Micro Devices has had strong hedge fund indicators and analysts who felt the company was poised to turn the corner. However, the latest weak guidance from Micron appears to be a major blow to AMD’s own short-term prospects. Given its devastating historical trends, and the weaknesses in several areas of the company as well as in the overarching segment it primarily operates, which have become more prominent than the company’s strengths, negatively affect the probability of investors receiving a positive return in comparison to other stocks researched by Insider Monkey. We don’t recommend buying AMD at this time.

Disclosure: None