Should You Buy Advanced Micro Devices (AMD) Following Latest Split/Spin-Off Rumors?

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What does the smart money think about Advanced Micro Devices, Inc. (NYSE:AMD)?

At the end of the first quarter, a total of 15 of the hedge funds tracked by Insider Monkey were long in this stock, a change of 25% from one quarter earlier. The total value of shares owned by the funds increased to $36.33 million meanwhile, from $28.34 million at the end of 2014, a significant increase given that it wasn’t fueled at all by rising shares, as they gained just a solitary $0.01 during the first quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully.

Of the hedge funds tracked by Insider Monkey, D.E. Shaw’s D E Shaw has the largest position in Advanced Micro Devices, Inc. (NYSE:AMD), worth $13 million, which is less than 0.1% of its 13F portfolio. Joel Greenblatt’s Gotham Asset Management has the second-largest stake in AMD, worth $8.9 million, which is also 0.1% of its 13F portfolio. Dmitry Balyasny’s Balyasny Asset Management, Ken Griffin’s Citadel Investment Group, and Cliff Asness‘ AQR Capital Management are some of the notable hedge fund managers also owning stakes in AMD.

Insider sentiment is neutral for Advanced Micro Devices (NASDAQ:AMD), as there were no transactions this year (which can be seen as a slight positive even), while hedge fund sentiment is clearly bullish. The company’s stock is performing well over the past week and the recent split/spin-off speculation and potential acting upon those rumors (though AMD denies them) could send it even higher. All told, we recommend a small long position in Advanced Micro Devices (NASDAQ:AMD) at this time.

Disclosure: None

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