Advanced Micro Devices (NASDAQ:AMD) Trading Down 4.4% After Insider Selling

Key Points

• AMD shares fell 4.4% to $493.41 after CEO Lisa Su sold a combined 95,000 shares worth about $48.1 million under pre-arranged Rule 10b5-1 trading plans.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and a $565.12 price target; recent quarterly revenue rose 50.1% year over year to $11.54 billion, exceeding estimates.
• Investor concerns include AMD’s elevated valuation, executive selling and fears that a slower or more regulated AI-development cycle could weaken demand for data-center and accelerator chips, despite ongoing AI partnerships and ecosystem expansion.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shares fell 4.4% during trading on Monday following insider selling activity. The company traded as low as $480.33 and last traded at $493.41. 24,454,785 shares were traded during trading, a decline of 27% from the average session volume of 33,644,141 shares. The stock had previously closed at $516.13.

Specifically, CEO Lisa Su sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $506.79, for a total transaction of $12,669,750.00. Following the sale, the chief executive officer directly owned 74,211 shares in the company, valued at $37,609,392.69. This represents a 25.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 70,000 shares of the firm's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.80, for a total value of $35,476,000.00. Following the sale, the chief executive officer directly owned 3,032,156 shares of the company's stock, valued at $1,536,696,660.80. This represents a 2.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

AMD has been the topic of a number of recent analyst reports. Wedbush reissued an "outperform" rating and issued a $600.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Wolfe Research set a $450.00 price target on Advanced Micro Devices and gave the company an "outperform" rating in a report on Monday, June 15th. Loop Capital upgraded shares of Advanced Micro Devices to a "strong-buy" rating in a research report on Tuesday, June 16th. Wall Street Zen upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Saturday, August 29th. Finally, Barclays downgraded shares of Advanced Micro Devices from an "overweight" rating to an "underweight" rating in a research note on Friday, June 12th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $565.12.

Key Headlines Impacting Advanced Micro Devices

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

• Positive Sentiment: Bernstein reiterated its Buy rating on AMD, signaling continued confidence in the company’s AI accelerator and data-center opportunity. Bernstein reiterates its Buy rating
• Positive Sentiment: AMD’s partnership with F-Secure is intended to improve trust and security around AI systems, potentially supporting enterprise adoption over time. AMD partnership with F-Secure
• Positive Sentiment: AMD and Intel expanded software cooperation through shared AI Compute Extensions support, a move that could make the x86 ecosystem more attractive to developers. AMD and Intel shared AI instructions
• Neutral Sentiment: Analysts and commentators remain constructive on AMD’s longer-term AI prospects, including its workstation products and potential market-share gains, but some note that new products may have limited near-term revenue impact. AMD Halo Station analysis
• Negative Sentiment: Anthropic CEO Dario Amodei and other AI leaders called for a slower, safer pace of AI development. Investors interpreted the remarks as a threat to the rapid data-center and accelerator spending cycle that benefits AMD, Nvidia and other chipmakers. Chip stocks fall on AI slowdown concerns
• Negative Sentiment: Walter Isaacson’s comments that AI companies could face greater legal liability after acknowledging safety risks added regulatory and litigation concerns to the market selloff. Walter Isaacson on AI liability
• Negative Sentiment: Investor caution is also rising because AMD has already surged substantially, trades at a demanding earnings multiple, and reports indicate senior executives have sold shares into the rally. AMD valuation and insider selling analysis

Advanced Micro Devices Stock Performance

The stock has a market capitalization of $805.48 billion, a price-to-earnings ratio of 126.84, a price-to-earnings-growth ratio of 5.35 and a beta of 2.48. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The stock has a 50-day moving average of $495.75 and a 200 day moving average of $405.29.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter last year, the firm earned $0.48 EPS. The company's revenue for the quarter was up 50.1% on a year-over-year basis. On average, analysts expect that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently made changes to their positions in the business. Bullseye Investment Management LLC bought a new stake in shares of Advanced Micro Devices in the 2nd quarter valued at about $44,000. Smith Chas P & Associates PA Cpas bought a new position in Advanced Micro Devices during the 2nd quarter worth approximately $277,000. Talon Private Wealth LLC acquired a new position in Advanced Micro Devices during the second quarter valued at approximately $1,352,000. Rench Wealth Management Inc. acquired a new position in Advanced Micro Devices during the second quarter valued at approximately $401,000. Finally, Bouchey Financial Group Ltd. increased its stake in Advanced Micro Devices by 5.7% in the second quarter. Bouchey Financial Group Ltd. now owns 4,386 shares of the semiconductor manufacturer's stock valued at $2,548,000 after purchasing an additional 238 shares in the last quarter. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.

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