Investment Company CCM Initiated a Position in AMD. Is the Stock a Buy?

CCM Investment Advisers disclosed a new position in Advanced Micro Devices (NASDAQ:AMD) in its October 10, 2025 Securities and Exchange Commission filing. The estimated $11.13 million purchase occurred in the third quarter of 2025.

What happened

According to a Securities and Exchange Commission filing dated October 10, 2025, CCM Investment Advisers established a new position in Advanced Micro Devices, purchasing 68,820 shares. The estimated transaction value was $11.13 million for the period ended September 30, 2025. The position represented 1.1% of the fund's $1.02 billion in reportable U.S. equity assets.

What else to know

CCM Investment Advisers' new AMD stake represents 1.1% of 13F assets, and is outside the fund's top five positions.

The company's top holdings after the filing as of September 30, 2025 are:

• NASDAQ:NVDA: $40.55 million (4.0% of AUM)
• NASDAQ:AVGO: $36.12 million (3.6% of AUM)
• NASDAQ:GOOGL: $35.72 million (3.5% of AUM)
• NASDAQ:MSFT: $33.70 million (3.3% of AUM)
• NASDAQ:AAPL: $32.84 million (3.2% of AUM)

As of October 9, 2025, AMD shares were priced at $232.89, up 36.18% over the prior 12 months, outperforming the S&P 500 by 17.67 percentage points over the past year.

Advanced Micro Devices reported $29.6 billion in trailing 12-month revenue, and $2.8 billion in net income for the trailing 12 months ending June 28, 2025.

The company’s forward price-to-earnings ratio is 28.57, and its enterprise value to EBITDA multiple is 48.83 as of October 10, 2025.

Company Overview

Company Snapshot

Advanced Micro Devices, Inc. (AMD) is a leading global semiconductor company specializing in high-performance computing and graphics solutions. The company’s strategy centers on innovation in CPUs, GPUs, and data center technology, targeting growth in the enterprise, cloud, and gaming sectors. AMD's competitive edge is driven by its advanced product portfolio and strong relationships with major technology partners worldwide.

The company produces x86 microprocessors, discrete and integrated GPUs, server and embedded processors, and semi-custom system-on-chip (SoC) products for computing, graphics, data center, and gaming applications.

IMAGE SOURCE: AMD.

AMD generates revenue primarily from the sale of processors and graphics products to OEMs, cloud service providers, system integrators, and independent distributors. It serves original equipment manufacturers, cloud service providers, system integrators, and online retailers in the global computing, data center, artificial intelligence, and gaming markets.

Foolish take

For CCM Investment Advisers to begin investing in AMD at this time is noteworthy because stocks in the artificial intelligence sector have been hot for some time now. Moreover, CCM already held shares in AI chip leader Nvidia, so why did it jump into AMD now?

The AI market went into overdrive in the third quarter of 2025 after Nvidia announced blockbuster deals with Intel and OpenAI. The British government also partnered with OpenAI in the quarter to expand AI infrastructure capacity in the country.

A rising tide lifts all boats, as the saying goes, so CCM could be anticipating AMD's growth amidst this environment. In fact, AMD announced its own partnership with OpenAI on Oct. 6. The partnership involves the semiconductor giant providing a massive number of its products to the ChatGPT creator, and is projected to deliver billions of dollars in revenue to AMD over the coming years.

As a result, AMD shares soared to an all-time high exceeding $240 on Oct. 9. While the company is a good investment and the stock has pulled back from its record high, it's worth waiting to see if the share price retreats further before deciding to buy.

Glossary

13F assets: The value of U.S. equity securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Stake: The amount of ownership or shares an investor or fund holds in a particular company.
Top holdings: The largest investments by value within a fund's portfolio.
AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
Outperforming: Achieving a higher return compared to a benchmark index or peer group over a specific period.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its projected future earnings per share.
Enterprise value to EBITDA multiple: A valuation ratio comparing a company's total value to its earnings before interest, taxes, depreciation, and amortization.
System-on-Chip (SoC): An integrated circuit that combines multiple components, such as CPU, GPU, and memory, onto a single chip.
Original equipment manufacturers (OEMs): Companies that produce parts or equipment used in another company's end products.
Cloud service providers: Companies offering computing resources, storage, or services over the internet to businesses or individuals.
Data center: A facility housing computer systems and associated components for storing, processing, and managing large amounts of data.

Robert Izquierdo has positions in Advanced Micro Devices, Alphabet, Apple, Broadcom, Intel, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.