Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.5% After Insider Selling

Key Points

• AMD shares fell 3.5% to $456.75 during Monday trading, with volume down 54% from its average. The decline followed several insider sales executed under pre-arranged Rule 10b5-1 plans.
• EVP Mark Papermaster sold approximately $13.6 million in stock, while SVP Ava Hahn sold $1.46 million and CEO Lisa Su sold $7.21 million. Despite the sales, all three retained substantial AMD holdings.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $546.95. AMD recently exceeded earnings and revenue estimates, posting $1.66 EPS and $11.54 billion in quarterly revenue, up 50.1% year over year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price fell 3.5% during mid-day trading on Monday following insider selling activity. The stock traded as low as $451.00 and last traded at $456.75. 15,967,532 shares traded hands during trading, a decline of 54% from the average daily volume of 35,004,496 shares. The stock had previously closed at $473.25.

Specifically, EVP Mark D. Papermaster sold 28,811 shares of Advanced Micro Devices stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares of the company's stock, valued at $595,245,602.07. This trade represents a 2.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ava Hahn sold 2,993 shares of the business's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the completion of the sale, the senior vice president owned 26,623 shares of the company's stock, valued at $13,010,393.87. The trade was a 10.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, CEO Lisa T. Su sold 15,000 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $480.94, for a total value of $7,214,100.00. Following the transaction, the chief executive officer directly owned 3,102,156 shares in the company, valued at approximately $1,491,950,906.64. This trade represents a 0.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Wolfe Research set a $450.00 price objective on Advanced Micro Devices and gave the company an "outperform" rating in a research note on Monday, June 15th. Citigroup upgraded Advanced Micro Devices from a "market perform" rating to a "buy" rating in a research report on Wednesday, July 22nd. TD Cowen reaffirmed a "buy" rating on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Wells Fargo & Company upped their price target on Advanced Micro Devices from $615.00 to $700.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Finally, HSBC lowered Advanced Micro Devices from a "buy" rating to a "hold" rating and increased their price objective for the stock from $335.00 to $340.00 in a research note on Monday, May 4th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $546.95.

Key Headlines Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Strong AI growth outlook: Analysts and investors continue to highlight AMD’s potential to benefit from more CPU-intensive AI data centers, supported by reported or anticipated relationships involving Meta, OpenAI and Anthropic. A bullish BMO call also points to substantial upside if AMD converts those AI opportunities into sustained revenue growth. AMD Stock Gets Stunning Price Target From Wall Street
• Positive Sentiment: Capacity expansion supports execution: AMD is reportedly committing more than $10 billion in Taiwan to expand advanced chip packaging with TSMC. The investment is intended to alleviate supply constraints and support a goal of more than 60% annual data-center revenue growth over the next three to five years. AMD Is Investing More Than $10 Billion in Taiwan
• Neutral Sentiment: Competitive landscape remains active: Cerebras reported sharply higher revenue and raised guidance, but its shares still fell after results. The reaction suggests investors are demanding increasingly strong evidence of AI-chip monetization, a consideration that also applies to AMD as it competes with NVIDIA and emerging challengers. Cerebras Systems Revenue Surges
• Negative Sentiment: Semiconductor sell-off is the immediate pressure: AMD declined alongside Intel, NVIDIA, Broadcom and other chip stocks, while semiconductor ETFs fell more sharply than broader technology funds. Investors appear to be reducing exposure before NVIDIA’s results, which could reset expectations across the AI-chip sector. Intel, AMD Stocks Decline as Chip Sell-Off Hits Wall Street
• Negative Sentiment: High expectations increase volatility: AMD’s reported price-to-earnings ratio above 117 and elevated share price relative to its 50-day average leave the stock vulnerable to profit-taking when sector sentiment weakens. The company’s AI investments are strategically positive but require significant spending and successful execution.

Advanced Micro Devices Price Performance

The stock's 50-day moving average price is $511.40 and its 200-day moving average price is $376.46. The company has a market capitalization of $745.63 billion, a price-to-earnings ratio of 117.42 and a beta of 2.48. The company has a quick ratio of 1.91, a current ratio of 2.61 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, topping analysts' consensus estimates of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the company posted $0.48 earnings per share. The firm's quarterly revenue was up 50.1% on a year-over-year basis. Equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Joseph Group Capital Management acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at $25,000. Sarver Vrooman Wealth Advisors acquired a new stake in Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC bought a new stake in shares of Advanced Micro Devices in the fourth quarter worth $27,000. Basepoint Wealth LLC bought a new position in shares of Advanced Micro Devices in the 4th quarter valued at about $30,000. Finally, JNBA Financial Advisors increased its position in shares of Advanced Micro Devices by 142.9% during the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 30 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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