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

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price was down 3.7% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $462.55 and last traded at $466.42. Approximately 18,964,569 shares were traded during mid-day 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 the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $487.34, for a total transaction of $3,591,208.46. Following the completion of the sale, the executive vice president directly owned 1,241,347 shares of the company’s stock, valued at approximately $604,958,046.98. This represents a 0.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 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 of the company’s stock, valued at approximately $60,598,213.17. The trade was a 11.30% decrease in their position. The SEC filing for this sale provides additional information. 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 firm’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $474.75, for a total value of $67,889.25. Following the sale, the senior vice president directly owned 17,644 shares in the company, valued at $8,376,489. This trade represents a 0.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several analysts have recently weighed in on AMD shares. Cantor Fitzgerald reissued an “overweight” rating and set a $700.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, August 5th. The Goldman Sachs Group upped their price objective on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Jefferies Financial Group set a $650.00 target price on Advanced Micro Devices in a research note on Wednesday, August 5th. Susquehanna boosted their price objective on shares of Advanced Micro Devices from $450.00 to $500.00 and gave the stock a “positive” rating in a research report on Thursday, July 30th. Finally, Wall Street Zen downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating in a research report on Saturday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $546.87.

Key Advanced Micro Devices News

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 Performance

The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $761.42 billion, a price-to-earnings ratio of 119.90 and a beta of 2.48. The stock’s 50 day moving average is $512.26 and its two-hundred day moving average is $371.71.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04. The business had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.Advanced Micro Devices’s revenue for the quarter was up 50.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.48 EPS. Analysts expect that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current fiscal year.

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in Advanced Micro Devices by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer’s stock worth $33,949,256,000 after buying an additional 2,525,109 shares during the last quarter. BlackRock Inc. increased its stake in shares of Advanced Micro Devices by 3.1% during the second quarter. BlackRock Inc. now owns 150,301,510 shares of the semiconductor manufacturer’s stock worth $87,311,650,000 after purchasing an additional 4,535,126 shares during the period. State Street Corp lifted its holdings in shares of Advanced Micro Devices by 1.5% during the fourth quarter. State Street Corp now owns 74,919,276 shares of the semiconductor manufacturer’s stock worth $16,044,712,000 after buying an additional 1,094,835 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Advanced Micro Devices by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 37,584,845 shares of the semiconductor manufacturer’s stock valued at $8,015,897,000 after purchasing an additional 287,525 shares during the period. Finally, Norges Bank acquired a new stake in Advanced Micro Devices during the fourth quarter worth approximately $4,929,312,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

About Advanced Micro Devices

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.