Why has AMD's active ownership declined?

AMD's active ownership has declined from 39% a year ago to just 20% in August 2025, as investors shift their focus to AI-focused tech stocks that are seen as offering greater upside potential and lower downside risk compared to AMD.

How has AMD's relative weighting in the S&P 500 changed?

AMD's relative weighting in the S&P 500 has decreased by 80% year-over-year, indicating a significant decline in the stock's prominence within the index.

What is the outlook for AMD's growth and market share?

Despite the declining ownership, analysts remain bullish on AMD's growth prospects, projecting 22% sales growth and continued market share gains against rival Intel. The company's focus on semiconductors for data centers, client computing, gaming, and AI applications is seen as a key driver of its future performance.

Home / Business and Economy / AMD Loses Favor Among Active Managers as AI Stocks Gain Traction

AMD Loses Favor Among Active Managers as AI Stocks Gain Traction

10 Sep

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Summary

AMD's active ownership fell from 39% a year ago to 20% in August 2025
AMD's relative weighting in the S&P 500 dropped 80% year-over-year
Analysts remain bullish on AMD's growth prospects, citing AI and market share gains

AMD Loses Favor Among Active Managers as AI Stocks Gain Traction

According to a report by Bank of America released on September 3, 2025, Advanced Micro Devices, Inc. (AMD) has become the most under-owned U.S. semiconductor stock among active managers. Despite being an outperformer in the sector, AMD's active ownership has fallen significantly over the past year, dropping from 39% a year ago to just 20% in August 2025.

Concurrently, AMD's relative weighting in the S&P 500 has decreased by 80% year-over-year. This shift aligns with consensus forecasts, which project 22% sales growth for AMD and the company's continued gains over the Philadelphia Semiconductor Index. However, the investment firm believes certain AI stocks may offer greater upside potential and lower downside risk compared to AMD.

Despite the declining ownership, Bank of America has reiterated its 'Buy' rating on AMD, citing strong tailwinds from rising artificial intelligence adoption and the company's sustained market share gains against rival Intel. AMD focuses on designing and developing semiconductors, including CPUs, GPUs, AI accelerators, and embedded solutions, serving data centers, client computing, gaming, and specialized applications globally.

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