AMD's recent stock price performance has not been good. Overnight on March 19, it also plummeted by nearly 7% during the intraday period. What actually happened to AMD?

On March 19, some analysts pointed out that there may be three main reasons for AMD's poor stock price performance:

First, AMD insiders have sold AMD shares worth nearly 16 million dollars over the past 12 months, and have bought zero of their own shares. The move has raised market doubts. Are AMD executives lacking confidence in AMD's prospects?

Second, the two main risks AMD may face in the next two years are the subsidence of the AI infrastructure “boom” and the stagnation of personal computer (PC) sales.

AMD insiders have sold $16 million in the past year and haven't bought a single share

Some analysts pointed out that the poor performance of AMD stock may be related to market concerns raised by the company's management selling off the stock.

According to public information, according to the chart below, AMD insiders have sold a total of about 7 million US dollars worth of shares in the last three months, and analysts have not recorded any stock purchases during the same period.

Over the past 12 months, AMD insiders have sold AMD shares worth nearly 16 million dollars. They have not bought the company's shares, but only sold them. Among them, an AMD insider named Forrest Norrod sold 10% of the shares held, or 5.3 million dollars of AMD shares. The selling price was 176 US dollars per share, which is lower than AMD's current stock price of 191 US dollars.

Analysts pointed out that if multiple insiders sell stocks in large quantities in a short period of time, this may mean that they think the current value of the stock is higher than its actual value, or that they have pessimistic expectations about the future of the company.

This is prudent, but further analysis is needed in conjunction with other information, as insiders may sell shares for a variety of reasons, including but not limited to personal financial planning requirements, exercise of stock options, etc., which do not necessarily reflect the insider's views on the company's prospects.

Also, by looking at the percentage of shares held by insiders, it is helpful to understand whether the interests of the company's senior management and shareholders are consistent. According to the data, AMD's senior management and directors together hold 0.5% of the company's shares. At the stock price at the time, these shares were worth around $1.7 billion. Analysts pointed out that this shareholding ratio is a good thing; it makes the interests of executives and ordinary shareholders more consistent.

Two major risks AMD may face in the future

Analysts believe that the two main risks AMD may face in the next two years are the subside of the AI infrastructure “boom” and the stagnation of personal computer (PC) sales.

Currently, many companies are developing primary AI applications, such as hospitals, call centers, and enterprise sales departments to serve customers by aggregating data and combining software-generated voice, images, and text. In the short term, these applications will benefit all participants. However, the profitability of this primary application is likely to fall short of expectations, causing enthusiasm for AI infrastructure investment to cool down.

Furthermore, OpenAI's CEO Sam Altman believes that the real opportunity lies in the consumer market, and he claims that current technology can create “general artificial intelligence” (AGI), a machine that can think in place of humans. However, despite rapid advances in AI technology, the implementation of general artificial intelligence still faces many technical and ethical challenges, which may delay its commercial application.

For AMD, the development of AI technology falls short of expectations or a decrease in market demand for AI infrastructure, which may have a negative impact on the company's stock price. At the same time, if sales growth in the PC market is weak, considering that PCs are an important part of AMD products, this will also adversely affect the company's performance.

Therefore, although AMD currently has an important position in both the AI and PC markets, the company's future development is still facing many challenges and uncertainties.

AMD and Sony join hands to create automotive lidar systems

On March 19, AMD announced that its advanced adaptive computing technology has been selected by Sony to be used in its latest automotive lidar reference design. The partnership aims to provide a powerful and efficient lidar solution for autonomous vehicles to improve the safety performance of autonomous vehicles.

AMD's adaptive computing technology can support lidar systems for efficient data processing and real-time analysis, greatly enhance the performance of Sony lidar systems, and provide higher accuracy, faster data processing and higher reliability for autonomous vehicles.

Lidar technology is a key part of autonomous vehicles. It can detect and analyze objects in the surrounding environment in real time to ensure safe driving.

The collaboration between AMD and Sony has promoted the development of autonomous vehicle safety technology and laid the foundation for higher levels of autonomous driving functions.

Editor/Somer