Advanced Micro Devices (NASDAQ:AMD) Trading Down 2.3% After Insider Selling

Key Points

• AMD shares fell 2.3% to $465.58 after two executives sold stock under pre-arranged Rule 10b5-1 trading plans. Jean X. Hu sold 15,000 shares for $7.1 million, while Forrest Eugene Norrod sold 17,261 shares for $7.9 million.
• Analyst sentiment remains broadly positive: AMD has a consensus rating of “Moderate Buy” and an average price target of $553.72, with recent targets ranging from $550 to $660.
• AMD’s latest quarter showed strong momentum, with revenue rising 50.1% year over year to $11.54 billion and EPS of $1.66 beating estimates. However, the stock’s high valuation and competitive pressure from Nvidia remain key risks.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price fell 2.3% during trading on Friday after an insider sold shares in the company. The company traded as low as $465.29 and last traded at $465.58. 15,230,659 shares changed hands during mid-day trading, a decline of 56% from the average daily volume of 34,561,211 shares. The stock had previously closed at $476.67.

Specifically, EVP Jean X. Hu sold 15,000 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $474.08, for a total value of $7,111,200.00. Following the sale, the executive vice president directly owned 160,979 shares of the company's stock, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 17,261 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $459.95, for a total transaction of $7,939,196.95. Following the completion of the transaction, the executive vice president directly owned 373,317 shares of the company's stock, valued at approximately $171,707,154.15. The trade was a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

AMD has been the topic of several recent research reports. Weiss Ratings reissued a "hold (c+)" rating on shares of Advanced Micro Devices in a research note on Monday, August 3rd. Raymond James Financial raised Advanced Micro Devices from an "outperform" rating to a "strong-buy" rating and upped their price objective for the stock from $565.00 to $641.00 in a research report on Tuesday. JPMorgan Chase & Co. increased their price objective on Advanced Micro Devices from $385.00 to $550.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Wedbush reissued an "outperform" rating and issued a $600.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Melius Research set a $660.00 target price on Advanced Micro Devices in a research note on Friday, July 24th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices presently has a consensus rating of "Moderate Buy" and an average target price of $553.72.

More Advanced Micro Devices News

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

• Positive Sentiment: AI demand and product roadmap remain strong: AMD’s recent results showed revenue growth of 50% year over year to $11.54 billion, while data-center revenue more than doubled. The company’s approximately $13 billion third-quarter revenue outlook, upcoming MI455X accelerator and Helios rack platform support expectations for continued AI infrastructure growth. AMD growth outlook
• Positive Sentiment: Analyst optimism and ecosystem expansion: Raymond James cited a potential $201 billion revenue opportunity by 2030 from agentic AI. AMD is also expanding its software and chiplet ecosystem through ROCm 10 and UCIe 1.1, while its equity investment and joint development agreement with Nutanix could help it sell more complete enterprise inference systems. Raymond James AMD upgrade
• Neutral Sentiment: Mixed customer signals: Anthropic reportedly has used or considered AMD hardware but subsequently agreed to a six-year, $45 billion lease for Nvidia-powered capacity. The development confirms strong AI spending while highlighting Nvidia’s stronger position in large-scale deployments. Anthropic AMD and Nvidia spending
• Negative Sentiment: Profit-taking and competitive pressure: Nvidia’s latest blockbuster results have redirected investor attention toward its superior profitability and CUDA software ecosystem. Technical commentary also indicates Nvidia began outperforming AMD in early July, encouraging rotation within AI-related stocks. Nvidia versus AMD comparison
• Negative Sentiment: Additional selling and policy risks: ARK Invest sold roughly $18 million of AMD stock while reallocating funds to Broadcom and Cerebras. Two AMD executives also sold shares under pre-arranged Rule 10b5-1 plans. Potential semiconductor tariffs covering chips and products containing them could raise costs for AMD’s data-center and hardware customers, while the stock’s elevated valuation leaves little room for execution missteps. AMD tariff risks

Advanced Micro Devices Stock Down 2.3%

The firm has a market cap of $760.05 billion, a P/E ratio of 119.69 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. The firm has a fifty day moving average of $507.14 and a 200-day moving average of $383.86.

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

Institutional Investors Weigh In On Advanced Micro Devices

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