Four hedge funds fully exited Advanced Micro Devices positions in Q2 2025 while three others accumulated stakes exceeding $100 million each, according to 13F filings processed through mid-May. The divergence marks the sharpest positioning split in a large-cap semiconductor name since Nvidia's post-earnings drawdown in late 2024.
The exits came from funds managing $18 billion in combined assets under management. Two were quantitative shops that had held AMD for fewer than three quarters. The buyers included a San Francisco growth equity fund that added 2.1 million shares at an average cost basis near $142, now underwater by eleven percent. A second accumulator, a Connecticut multi-strategy fund, built a $187 million position representing 1.8% of its public equity book. That fund had no AMD exposure in Q1.
The split reflects institutional uncertainty over data center capital expenditure cycles. AMD trades at 22x forward earnings versus Nvidia's 31x, a discount that has widened from 4x in February to 9x by late April. Buyers are pricing in market share gains in AI accelerators as hyperscalers diversify chip suppliers. Sellers are pricing in compressed margins as AMD competes on price to win socket share from an entrenched incumbent. Both camps have access to the same supplier checks and the same hyperscaler procurement calendars. The disagreement is timing.
The technical picture complicates the fundamental debate. AMD's 50-day moving average crossed below its 200-day on April 18, a death cross that preceded three months of sideways chop. Short interest now sits at 4.2% of float, up from 2.9% in January but still below the 6%-8% range that typically precedes a technical squeeze. The May options expiry saw $340 million in put open interest at the $135 strike, suggesting institutional hedging rather than outright bearish conviction. That put wall expired worthless as AMD closed May at $138.50.
Operators should track two June events. AMD reports Q1 earnings on June 3, with consensus expecting $1.09 per share on revenue of $6.8 billion. Any guide above $7.2 billion for Q2 will force sell-side models higher and likely trigger short covering. Second, Computex Taipei runs June 2-6, where AMD typically pre-announces product roadmaps. If CEO Lisa Su signals MI350 accelerator sampling ahead of the August timeline, institutional buyers will reprice the second-half revenue ramp. If she stays vague, the split positioning persists into July.
The broader hedge fund community reduced aggregate exposure to semiconductors by $11 billion in Q2, the largest sector rotation since the 2022 rate shock. AMD's split positioning is the exception, not the rule. Most chip names saw coordinated profit-taking. That makes AMD the live tell on whether smart money believes the AI infrastructure build is decelerating or simply pausing before the next leg. The funds that exited are betting pause becomes plateau. The funds that bought are betting pause becomes buying opportunity. One group will reprice their book by thirty percent before September.