Key insights
- AMD's EVP Norrod sold $8.4M in stock under a pre-arranged 10b5-1 plan after exercising options. InvestingPro analysis suggests AMD is overvalued with a high P/E ratio. While not definitively bearish, the executive sale and valuation concerns present a slightly negative signal for near-term US equity performance.
Norrod Forrest Eugene, Executive Vice President and General Manager of Advanced Micro Devices Inc. (NASDAQ:AMD), sold a total of 19,487 shares of the company’s common stock on May 20, 2026, according to a recent Form 4 filing with the Securities and Exchange Commission. The transactions amounted to approximately $8.4 million.
The sales were executed at prices ranging from $427.03 to $436.50 per share. Specifically, the shares were sold across multiple trades with weighted average prices between $427.80 and $435.91 per share. These sales were carried out under a Rule 10b5-1 trading plan, which was adopted by Mr. Norrod on June 6, 2025. The stock has since climbed to $467.51, reflecting a remarkable 322% gain over the past year and trading near its 52-week high of $481.41.
Prior to these sales, Mr. Norrod also acquired 8,237 shares of AMD common stock on the same date through the exercise of stock options. These options were exercised at a price of $34.19 per share, totaling approximately $281,623. This option exercise was also conducted under a Rule 10b5-1 trading plan adopted on June 6, 2025. The options vested in thirds on August 9, 2020, 2021, and 2022.
Following these transactions, Mr. Norrod directly holds 324,527 shares of Advanced Micro Devices common stock. According to InvestingPro analysis, AMD currently appears overvalued based on its Fair Value assessment and trades at a high earnings multiple with a P/E ratio of 156. For deeper insights into AMD’s valuation and access to 22 additional ProTips, investors can explore the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Advanced Micro Devices (AMD) is collaborating with Amkor Technology on packaging its chip products. This partnership announcement coincides with Amkor’s acquisition of 67 additional acres in Arizona, adjacent to its planned new campus. In a separate development, AMD’s CEO Lisa Su met with China’s Vice Premier He Lifeng in Beijing, where discussions focused on enhancing cooperation as trade relations stabilize. China extended an invitation for AMD to deepen its involvement in the country’s development.
Meanwhile, Citigroup projects substantial growth in the server CPU market, forecasting it will reach $132 billion by 2030. The growth is expected to be led by agentic CPUs, which are anticipated to see a 185% compound annual growth rate. Evercore has reiterated an Outperform rating on AMD, citing a first-quarter 2026 market share report that shows AMD gained 220 basis points in server CPU unit share. This increase contributed to a decline in Intel’s unit share from 59% to 55%. These developments highlight significant shifts and opportunities in the CPU market landscape.
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