As artificial intelligence (AI) drives unprecedented demand and the company carves out a larger share of the PC and server CPU markets, one might expect Advanced Micro Devices (AMD) to be riding high. But reality tells a different story.

Since peaking in early 2024, AMD shares have taken a major hit, and 2025 isn’t shaping up to be much better, with the stock still struggling in the red on a YTD basis. While AMD’s fundamentals appear strong, the company’s struggles with its gaming and embedded segments in 2024 remain major weak spots, dragging down overall investor sentiment. A sharp decline in gaming revenue and weak embedded sales due to excess inventory have overshadowed growth in key areas.  

With no swift turnaround in sight for its gaming division and Nvidia (NVDA) still reigning supreme, AMD’s stock remains under pressure, even as other segments show strength. Yet, amid AMD’s struggles, a rare insider trade could be hinting at brighter days ahead. For the first time in 12 years, an AMD executive has made a notable stock purchase, this time by Phil Guido, the company’s executive vice president and chief commercial officer. So, with insider trades often seen as a sign of conviction, should investors take notice and get on board?

About Advanced Micro Devices Stock

With a market cap of $185.2 billion, Advanced Micro Devices (AMD) is a dominant force in the semiconductor industry, offering a wide range of cutting-edge technologies. The company’s portfolio includes high-performance CPUs and GPUs, as well as advanced software solutions. In fact, AMD is the second-largest producer of chips for video game consoles, behind market leader Nvidia.

Yet AMD’s shares have taken a significant hit, dropping nearly 49.7% from its March highs last year and plummeting 34.3% over the past 52 weeks, while the broader S&P 500 Index ($SPX) has gained almost 22.5% during the same stretch. The rough ride has continued into 2025, with AMD’s stock slipping about 5.4% on a YTD basis.

While AMD’s stock may not appear to be a bargain at first glance, trading at 28.86 times forward earnings and 7.03 times sales, it’s still notably more affordable compared to its industry rival and AI leader, Nvidia. The chip giant commands a lofty 34.03 times forward earnings and 30.60 times sales.

Advanced Micro Devices Beats on Q4 Earnings

Earlier this month, on Feb. 4, AMD dropped its 2024 fourth-quarter earnings results, reporting a solid 24% year-over-year revenue increase to $7.7 billion, surpassing analysts’ expectations of $7.5 billion. The company also delivered an earnings beat, with adjusted earnings per share of $1.09, reflecting 42% annual growth. These results painted a picture of strong top- and bottom-line performance, signaling AMD’s ongoing momentum.

During the final quarter of 2024, AMD’s client segment revenue hit $2.3 billion, marking an impressive 58% year-over-year increase, primarily driven by the strong demand for AMD Ryzen processors, which have become a key driver of the company’s growth. Yet, despite these upbeat numbers, the stock took a hit, plunging nearly 6.3% on Feb. 5. The major disappointment for investors was AMD’s data center revenue, which, although it was up 69% year-over-year to $3.9 billion, fell short of market forecasts.

Moreover, the gaming division remained another area of concern for investors, with a steep 59% annual decline in revenue to $563 million. These mixed results cast a shadow over an otherwise strong quarter, leaving investors cautious about the chip maker’s growth trajectory.

Looking forward to Q1, management anticipates revenue to reach around $7.1 billion, with a potential variance of $300 million. At the midpoint, this reflects 30% year-over-year growth. The company expects non-GAAP gross margin for the quarter to hover around 54%.

Insider’s Bold Bet on Advanced Micro Devices

In a recent bold move, Phil Guido, the company’s executive vice president and chief commercial officer, made a rare purchase of 4,645 AMD shares on Feb. 7, spending approximately $500,000 at an average price of $107.56 per share. This brings his total AMD holdings to 33,522 shares. What makes this especially notable is that it marks the first open-market purchase by an AMD insider since November 2012, when Lisa Su, then a senior vice president, bought 48,000 shares at just $2.05 each before her rise to president, CEO, and chair.

Insider purchases are often seen as a sign of confidence, and Guido’s sizable investment raises the possibility that AMD could be poised for a rebound. With the company presently navigating challenges in certain areas, this rare purchase could signify a turning point for the stock, making this a moment for investors to closely watch.

What Do Analysts Expect for Advanced Micro Devices Stock?

Overall, Wall Street still appears optimistic about AMD stock, maintaining a consensus rating of “Moderate Buy.” Of the 41 analysts offering recommendations, 27 advise a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining 13 maintain a “Hold.” The average analyst price target of $146.49 indicates potential upside of roughly 27% from current levels, while the Street-high target of $225 signals that the stock can rally as much as 95% from current levels.