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Are Insiders Giving Up on Advanced Micro Devices (AMD) Stock?


  • Advanced Micro Devices (AMD) is falling today as market momentum shifts.
  • One of the chipmaker’s executives recently offloaded a chunk of shares.
  • However, he still holds most of his position and institutional investment in AMD stock remains strong.
AMD (AMD) sign outside of office building with greenery
Source: JHVEPhoto / Shutterstock.com

It has been an outstanding few weeks for Advanced Micro Devices (NASDAQ:AMD) stock, which is up more than 30% for the past month. Most recently, the chipmaker has been riding the wave generated by rival Nvidia’s (NASDAQ:NVDA) first-quarter earnings report. Since Nvidia’s results, many stocks in the semiconductor space are still performing well. However, AMD stock appears to be running out of momentum.

A U.S. Securities and Exchange Commission (SEC) form may reveal part of the reason why. According to a Form 4 filing, one of the company’s top executives recently offloaded a significant portion of AMD stock. Executive Vice President Forrest Narrod has significantly reduced his AMD holdings, selling 25,000 shares. This suggests that he may be partially giving up on the company. However, that doesn’t mean others are doing the same.

What does this mean for the future of AMD? Let’s take a closer look at today’s news and assess what the recent sale means for Advanced Micro Devices’ long-term growth prospects.

What’s Happening With AMD Stock?

After a week of climbing steadily, AMD stock has reversed course. As of this writing, shares are down more than 4% for the day.

Part of today’s declines can be attributed to negative market momentum. Nvidia is also falling 4% as of this writing and plenty of other companies in the space are trending down as well. If NVDA stock is down, it will be hard for other chip stocks to rally. However, Farrod’s sale still raises some questions about AMD.

According to the Form 4, Farrod’s sale went into effect on May 25. The exec offloaded 25,000 shares of AMD common stock at $119.35 each, but this news did not immediately hamper AMD stock. In fact, shares continued to trend upward throughout the remainder of last week. This suggests that the sale has posed minimal impact on AMD.

Of course, it’s also important to note that Farrod still holds 251,816 shares after the sale. He clearly hasn’t given up on the stock completely and may just be pursuing other investment opportunities while maintaining exposure to AMD stock. Additionally, data from WhaleWisdom indicates that institutional investment in this chipmaker remains strong. Analysts believe shares have significant upside as well. No one seems to be giving up on Advanced Micro Devices just yet.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/are-insiders-giving-up-on-advanced-micro-devices-amd-stock/.

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