BofA Warns: AMD Is Least-Owned Semiconductor Stock in S&P 500

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If you follow the contrarian investment philosophy, you might be excited about loading up on AMD shares. Given its chronic underrepresentation in investment portfolios across Wall Street, this could present an attractive opportunity.

According to a new survey by Bank of America, active ownership of AMD among fund managers declined to just 20 percent in August 2025, down from 3 percentage points relative to May’s levels. This is a significant drop from the previous year when 39 percent of surveyed fund managers retained an active exposure to AMD.

Concurrently, AMD’s representation in the S&P 500 index has dropped to 0.16x, down 5 percent quarter-over-quarter and a staggering 80 percent year-over-year. As such, AMD is now the least-owned semiconductor stock in the benchmark index.

Interestingly, despite this decline, AMD’s stock price has risen by 34 percent so far this year, outperforming the Philadelphia Semiconductor Index (PHLX).

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October 8, 2025

Furthermore, AMD’s growth story remains intact. The company recently guided to a revenue target of $8.7 billion for the ongoing quarter, up over 14 percent relative to the just-concluded quarter’s aggregate revenue of $7.6 billion.

Note that in Q2 2025, AMD reported a GAAP operating loss, largely due to “the $800 million inventory and related charges associated with US export control restrictions on Instinct MI308 products,” as disclosed by the company in its financial statements notes. These charges increased the chipmaker’s cost of goods sold by 59 percent year-over-year.

However, with the Trump administration easing its previous restrictions on GPU sales to China, AMD can now sell its “obsolesced” MI308 GPUs at near-zero cost and high gross margin, which is expected to boost second-half revenue. As per an assessment by Susquehanna, this could add $800 million back to the forecasted 2H25 revenue.

Additionally, AMD has officially unveiled its new MI350 series GPUs, based on its 4th-gen Instinct architecture and set to be available in the third quarter of 2025. According to AMD, these GPUs are capable of delivering a 4x increase in AI compute power and a 35x increase in inferencing capacity.