Advanced Micro Devices Insiders Sell US$5.1m Of Stock, Possibly Signalling Caution
Insiders at Advanced Micro Devices (NASDAQ:AMD) have been selling a significant stake in the company, raising concerns among investors.
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Posted 9/1/2023, 11:49:57 AM
simplywall.st
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Wall Street analysts are optimistic about chipmaker Advanced Micro Devices (AMD) and its potential in the AI market, despite the current focus on Nvidia, with several analysts giving a Buy rating on AMD's stock and expecting solid upside potential.
Advanced Micro Devices (AMD) is well-positioned to thrive in the artificial intelligence accelerator chip market and benefit from favorable trends in the data center, AI, and gaming, making its shares undervalued, according to Morningstar.
Nvidia's soaring stock price, driven by the booming demand for its data center graphics cards in the AI arms race, has led to a high valuation, making it an opportune time to consider investing in Advanced Micro Devices (AMD) as it could benefit from the growing demand for AI chips and potentially capture a significant share of the data center GPU market.
Tech companies, such as Microsoft, Amazon, and Advanced Micro Devices (AMD), are attractive investment choices due to their long-term potential in AI, e-commerce, and chip development, respectively. These companies have a history of offering reliable gains and are well-positioned to benefit from the growth and demand in the tech industry.
Advanced Micro Devices (AMD) stock is rising as investors recognize its potential in the artificial intelligence (AI) hardware market, making it a strong competitor to Nvidia, especially with the launch of its M1300X AI chip in the third quarter of 2023.
Advanced Micro Devices (AMD) CEO states that the demand for artificial intelligence semiconductors is skyrocketing.
AMD's CEO, Lisa Su, stated that the high interest in the company's AI data-center chips has resulted in customer commitments and is expected to lead to a strong second half of the year for their data-center business.
Despite a 13% decline in value over the past week, Asana insiders who sold $897k worth of stock in the past year did not benefit from the decrease in price, as the average selling price was still lower than the current share price. Insiders have not made any purchases, and recent insider selling may suggest that they do not view the shares as cheap. The company's insiders currently own 62% of the company, indicating alignment with other shareholders. However, analysis of insider transactions raises concerns about the company, as there have been no insider purchases and Asana has three warning signs.
Advanced Micro Devices (AMD) has been downgraded to a sell due to concerns about high expectations for A.I. revenue and the belief that AMD's A.I. GPU offerings will lag behind Nvidia, leading to underperformance and a recommendation to sell.
Insiders at Robinhood Markets have been selling more shares than they have been buying, with the recent sale by Daniel Gallagher being the largest in the past year. While high insider ownership suggests alignment with shareholders, the selling activity leaves some caution.
AMD's director for the commercial client business, Justin Galton, believes that AI adoption on desktops is not yet widespread and may take some time to become apparent, with AMD's dedicated AI accelerator currently only available in one CPU model and more AI-equipped processors set to be released in 2024. Galton also mentioned that small to medium businesses may not be enthusiastic about AI, and that Intel may have more AI-ready desktop processors than AMD. Additionally, a gaming market report predicts a drop in demand for gaming PCs in 2023, while gaming monitor shipments are expected to increase. With regards to AMD's products, Galton said that buyers are currently opting for modestly priced PCs with Ryzen 5000 and 6000 models due to Intel's excess inventory. Additionally, AMD aims to expand its market share in commercial PCs to 20% in 2024.