Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.7% After Insider Selling

Key Points

• AMD shares fell 3.7% to $466.42 after trading as low as $462.55, with volume 46% below its average.
• Executives Mark Papermaster and Paul Grasby sold a combined 22,369 shares worth about $11.3 million. The transactions were made under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards, rather than signaling necessarily bearish views.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $546.87. AMD recently beat quarterly earnings and revenue estimates, but its high valuation, 2.48 beta and exposure to broader semiconductor selling remain risks.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was down 3.7% on Wednesday after an insider sold shares in the company. The stock traded as low as $462.55 and last traded at $466.42. 18,964,569 shares traded hands during trading, a decline of 46% from the average daily volume of 35,387,395 shares. The stock had previously closed at $484.39.

Specifically, EVP Mark D. Papermaster sold 7,369 shares of Advanced Micro Devices stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $487.34, for a total value of $3,591,208.46. Following the completion of the transaction, the executive vice president directly owned 1,241,347 shares in the company, valued at approximately $604,958,046.98. This trade represents a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Paul Darren Grasby sold 15,000 shares of the company's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the sale, the executive vice president owned 117,687 shares in the company, valued at $60,598,213.17. The trade was a 11.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other Advanced Micro Devices news, SVP Ava Hahn sold 143 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $474.75, for a total transaction of $67,889.25. Following the transaction, the senior vice president owned 17,644 shares of the company's stock, valued at $8,376,489. This trade represents a 0.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

AMD has been the subject of a number of research analyst reports. DA Davidson boosted their price target on Advanced Micro Devices from $425.00 to $550.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Bank of America raised their price objective on Advanced Micro Devices from $550.00 to $620.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Stifel Nicolaus lifted their price objective on shares of Advanced Micro Devices from $450.00 to $635.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Oppenheimer lowered shares of Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a research note on Wednesday, May 6th. Finally, Needham & Company LLC raised shares of Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $546.87.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: CEO Lisa Su reportedly expects server revenue to grow more than 80% in the current half, excluding AI accelerators. That outlook suggests AMD’s broader EPYC data-center business remains a major growth engine. Lisa Su server revenue outlook
• Positive Sentiment: AMD’s Helios platform, Instinct Coder product for private enterprise AI and reported investment in specialized AI-inference technology could broaden its AI ecosystem and improve its competitive position against NVIDIA. AMD Instinct Coder
• Positive Sentiment: AMD signed a memorandum of understanding with Mexico’s Secihti, potentially supporting regional technology development and future semiconductor opportunities, although the agreement does not immediately add material revenue. AMD Mexico MOU
• Neutral Sentiment: Analysts remain broadly bullish, with a reported consensus “Moderate Buy” rating and an average target of $546.87. However, targets above the market depend on AMD converting strong AI demand into sustained earnings growth.
• Negative Sentiment: Semiconductor stocks are being sold broadly as investors reassess high-growth technology valuations, inflation, oil prices and the effect of borrowing costs. AMD’s high beta and premium earnings multiple make it particularly sensitive to this repositioning. Why Intel and AMD stocks are falling
• Negative Sentiment: AMD’s valuation is a key risk after its sharp year-to-date advance. Commentary that AMD trades at a higher premium than NVIDIA raises the possibility of further profit-taking if growth expectations moderate. AMD versus NVIDIA valuation
• Negative Sentiment: Ark Invest has been reducing its AMD position while buying NVIDIA, and Cerebras’ reported AI momentum adds to concerns about intensifying competition in inference hardware. Ark Invest sells AMD
• Negative Sentiment: Executives Mark Papermaster and Paul Grasby sold shares under pre-arranged plans to cover tax withholding on vested awards. The sales were not necessarily discretionary bearish signals, but they add to near-term investor caution. AMD insider selling

Advanced Micro Devices Stock Down 3.7%

The stock has a market cap of $761.42 billion, a P/E ratio of 119.90 and a beta of 2.48. The stock's 50-day moving average is $512.26 and its 200-day moving average is $371.71. The company has a current ratio of 2.61, a quick ratio of 1.91 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 firm had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same period in the prior year, the firm posted $0.48 earnings per share. The firm's revenue for the quarter was up 50.1% compared to the same quarter last year. As a group, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds have recently made changes to their positions in AMD. Luminist Capital LLC acquired a new stake in shares of Advanced Micro Devices during the second quarter worth $46,000. BOK Financial Private Wealth Inc. purchased a new stake in Advanced Micro Devices in the 2nd quarter worth approximately $53,000. Toews Corp ADV acquired a new stake in Advanced Micro Devices during the second quarter valued at $66,000. Joseph Group Capital Management acquired a new stake in shares of Advanced Micro Devices during the 4th quarter valued at about $25,000. Finally, Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $27,000. Institutional investors and hedge funds own 71.34% of the company's stock.

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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