AMD

AMD($AMD) Executive Buys Nearly $1 Million in Stock While Other Top Officers Sell

05/22/2025 20:28

AMD executive Philip Guido has purchased nearly $1 million worth of company stock on May 22, a notable vote of confidence amid a pattern of selling by other executives. Guido, an Executive Vice President at the chipmaker, acquired 8,800 shares at $113.56 per share, marking his second significant purchase this year following a February acquisition of 4,645 shares at $107.56. The two purchases combined represent an investment of over $1.5 million. $AMD stock has experienced substantial volatility over the past six months, trading around $120 in late 2024 before falling below $99 in February 2025 and further declining to under $80 in early April. The stock has since recovered to the $110+ range, bolstered by easing U.S.-China trade tensions. Particularly noteworthy is how Guido's purchase contrasts with the selling pattern of other AMD executives. CTO Mark Papermaster sold 17,500 shares worth approximately $2.04 million on May 15, continuing a pattern of regular sales over several months. Chairman Lisa Su has likewise sold substantial amounts of stock in recent months. "Executive purchases typically signal strong confidence in a company," said semiconductor analyst Michael Walker. "The fact that Guido has made two significant buys within a few months suggests insiders may view the current stock price as undervalued." AMD has reported mixed results in recent performance metrics. In Q1 2025, the company's data center segment revenue surged 57.2% year-over-year to $3.67 billion, while client segment revenue jumped 67.7% to $2.29 billion. However, gaming revenue declined 29.8% to $650 million, and embedded segment revenue dropped 2.7% to $820 million. Overall, AMD reported Q1 revenue of $7.44 billion (up 35.9% YoY) and earnings per share of $0.96 (up 54.8% YoY), both exceeding analyst expectations. However, AMD announced in early May that U.S. restrictions on AI chip exports to China would cost the company approximately $1.5 billion in revenue for 2025, representing about 5% of projected annual revenue. This outlook improved somewhat on May 12 when the U.S. and China agreed to lower tariffs and implement a 90-day pause in their trade dispute. AMD also announced on May 19 that it would sell ZT Systems' server-manufacturing business to Sanmina in a $3 billion deal. The company will retain ZT's AI systems design unit to strengthen its position against Nvidia in the AI processor market. "Guido's purchase could be interpreted as confidence in AMD's data center business and AI strategy," said Ethan Chen, semiconductor analyst at Morgan Stanley. "It comes at a critical time as the company rolls out new AI chips like the MI325X and MI350 GPUs to challenge Nvidia." If current trends continue, AMD is expected to capture approximately 5% of the AI GPU market by late 2025, potentially driving around 25% year-over-year revenue growth in the AI segment. Wall Street analysts remain largely positive on AMD, with a majority of the 36 analysts covering the stock rating it as "Buy" or "Strong Buy." The average price target of approximately $127 suggests upside potential of about 15% from current levels. Investors will be watching for AMD's next earnings report, expected in late July to early August. This report will provide further insights into data center growth momentum, competitive dynamics in AI hardware, and the impact of U.S.-China trade relations on the company's performance.

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