Advanced Micro Devices Inc. (NASDAQ:AMD) executive vice president and general manager of the Data Center and Embedded Solutions Group, Forrest Eugene Norrod, recently sold a significant portion of the company's stock. According to a recent SEC filing, Norrod sold 40,540 shares of AMD common stock on November 5, 2024, at an average price of $141.67 per share, totaling approximately $5.74 million.
This transaction followed an exercise of stock options, where Norrod acquired the same number of shares at a price of $19.10 each, amounting to a total value of $774,314. After these transactions, Norrod holds 293,347 shares of AMD directly.
These trades were executed as part of Norrod's ongoing management of his equity interests in the company, reflecting a typical pattern for executives managing their compensation packages.
In other recent news, Advanced Micro Devices, Inc. (AMD) has made significant strides in its recent developments. The company announced the launch of its new Ryzen 7 9800X3D desktop processor, featuring advanced 2nd Gen AMD 3D V-Cache technology and Zen 5 architecture. The processor, priced at $479, is designed to enhance gaming performance and is marked by its innovative cache technology that aids in maintaining cooler core temperatures and higher clock rates.
AMD also reported robust Q3 2024 results, with revenues reaching $6.8 billion, marking an 18% increase from the previous year. This growth was primarily driven by the Data Center segment, which surged 122% to $3.5 billion, attributed to the widespread use of EPYC CPUs. Despite this, AMD's Gaming and Embedded segments experienced declines. Diluted earnings per share increased by 31% to $0.92 and the company projects Q4 revenue to be around $7.5 billion, indicating a 22% year-over-year growth.
In addition, AMD announced its plans to acquire ZT Systems to enhance its AI infrastructure capabilities. The company expects the Data Center GPU revenue to exceed $5 billion in 2024. Despite declines in certain segments, AMD's strategic focus on EPYC and Ryzen products, coupled with advancements in AI systems, positions the company for future growth.
InvestingPro Insights
While AMD's executive vice president Forrest Eugene Norrod's recent stock sale might raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, AMD boasts a substantial market capitalization of $243.39 billion, underlining its significant presence in the semiconductor industry.
An InvestingPro Tip reveals that AMD is a prominent player in the Semiconductors & Semiconductor Equipment industry, which aligns with Norrod's high-level position in the company. Despite the recent stock sale, AMD's financial health appears robust, with another InvestingPro Tip indicating that the company's liquid assets exceed its short-term obligations.
Investors should note that AMD's stock price movements are quite volatile, as highlighted by another InvestingPro Tip. This volatility is reflected in the company's recent performance, with a 27.9% price total return over the past year, despite a 15.13% decline in the last month.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for AMD, providing a deeper understanding of the company's financial position and market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.