With the stocks of Advanced Micro Devices (NASDAQ: AMD) making a massive decline since their all-time high (ATH) they had hit on March 8 this year, following the launch of AMD’s new artificial intelligence (AI) microchip, certain insider trades have caught the attention of outside observers.
Specifically, not long after CEO Lisa Su sold 125,000 AMD shares, earning her over $24 million in the largest AMD insider sale in six years, AMD’s CTO Mark D Papermaster offloaded 16,200 stocks at the price of $186.73 per share, earning close to $3.03 million – and he hasn’t stopped there.
CTO/EVP sells $5.7 million in AMD stock
More recently, on April 15, Papermaster, who is also AMD’s executive vice president, sold another 16,200 AMD shares at the price of $164.25, collecting over $2.6 million in profit and bringing the value of his insider AMD sales to $5.69 million, according to the latest MarketBeat data on April 18.
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AMD stock price analysis
As of now, AMD stocks are trading at the price of $155.67, marking a decline of 5.72% on the day, a 5.78% drop across the past week, and adding up to the accumulated 14.19% dip on its monthly chart. That said, AMD shares have recorded an increase in price of 12.29% since the year’s turn.
So, why is AMD stock dropping? Notably, China could be the reason, as the South China Morning Post reported that semiconductor chip output in this country surged by 40% in the first quarter, more than twice as fast as total semiconductor sales around the world, as Chinese chipmakers are witnessing soaring demand amid efforts to achieve self-reliance.
AMD stock forecast
Meanwhile, HSBC analyst Frank Lee pointed out a reset in market expectations for AMD’s MI300 series accelerators’ 2024 and 2025 revenue haul, bringing them down to $4-5 billion for 2024, as opposed to prior calls of $6-8 billion, and to $9-10 billion for 2025, down from the previous $10-12 billion.
On the other hand, he upgraded his AMD stock rating from ‘hold’ to ‘buy,’ while also raising the price target from $180 to $225 for the next 12 months, expecting it to be worth about 46% more than the price at which it is currently changing hands, explaining that:
“However, we also think that AMD has enough supply capacity and demand to surpass management’s AI GPU revenue guidance of >USD3.5bn in 2024, and we think management could raise guidance to above USD5bn vs our estimate of USD6.5bn.”
Moreover, Lee has also factored in an anticipated boost from other parts of AMD’s business, including improvement in non-AI segments like client and traditional servers, all of which could contribute to Advanced Micro Devices’ better stock price outlook.
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