These AI Stocks Are Selling Inside, But Buyers Still Have Reason to Hold

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Table of Contents

Important Points

Insiders are selling great technology, but investors should think twice, as these stocks have risen and are still rising.
Criticism of AI is key to their performance and outlook: the AI bubble is still expanding.
Analysts and institutions offer support, but there are some risks that investors should be aware of.

Insiders are selling big tech stocks like Seagate Technologies (NASDAQ: STX ), Texas Instruments (NASDAQ: TXN ), and Cloudflare (NYSE: NET ), sending a signal to investors. The caveat is that this signal is the opposite, as their top stocks are strong in double digits, with triple digit gains in some cases, driven by analyst improvements and supported by institutional investors. The benefits are supported by their different strengths, which investors should buy into. Ultimately, AI, and the AI boom, are driving their own price action, and the AI boom is still growing. Summer price weakness is a buying opportunity when it presents itself.

Seagate Technology: Making Other Memory Critical to AI

Seagate Technology insiders are not only selling shares, but doing a lot of work starting in Q2 2026. Sales are broadly based and tracking near historic highs, but given the stock’s 575% trailing 12-month (TTM) growth, it’s understandable. Insiders lock in profits and reposition portfolios, as they should, given the opportunity.

The opportunity, however, is not far from play, as Seagate is serious about AI. While DRAM and high-bandwidth memory (HBM) get all the attention, they are short-term memory solutions for AI training and applications. Seagate makes memory that permanently stores all data. Its magnetic and flash systems do not require power, allowing for secure, inexpensive, long-lasting data storage.

Seagate Technology’s revenue and earnings growth reflect its importance in the industry. Revenue growth is picking up, margins are expanding, and the momentum is predicted to continue for at least the next five years. The trends, which include more than quarter-on-quarter performance, analysts are bullish, predicting new all-time highs at the high range, including, sentiment, and price targets are improving.

The biggest risk is institutions, which own more than 90% of the stock and sell shares in early Q2. If this activity continues, STX will still struggle to improve. The next visible catalyst is the Q4 financial results expected in late July, but results from other AI leaders, including NVIDIA (NASDAQ: NVDA ), may cause some overlap. A drop in stock price may cause them to accumulate shares again.

STX's chart shows the stock surpassing consensus and set for a correction ahead of the July EPS report.

Texas Instruments: Essential for All Levels of the AI Stack

Texas Instruments is critical to AI at all levels of the stack because its analog products control power, sense data, and connect components together. A structured data center fuels business today; automotive, industrial, and IoT markets will develop it over time. Domestic sales versus STX, as broadly based, are up in Q2, and considering historically high prices.

Texas Instruments’ 2026 results show the strength of its position. Revenues returned to growth in 2025 and have been accelerating sequentially since mid-2026. The results include outperforming relative to analysts’ forecasts and hot guidance, making them bullish. Looking ahead, TXN is expected to continue its modest growth and margin improvement in the coming years.

Although the reported consensus since late June has delayed the price, the stock is up more than 40% on a TTM basis, with Q2 revisions in the upper range, suggesting new highs later this year. The difference is that early Q2 institutional activity is strong, suggesting a clear path to higher prices.

TXN's chart shows the stock is up more than 40% in the last 12 months with higher upside expected later this year.

Cloudflare: Front-Line Security for 20% of the Internet

Cloudflare is an important AI name because its platform serves as the primary security for nearly 20% of the Internet. Services include reverse proxy, which provides a barrier between Internet users and endpoint websites, and is important today because of the agency’s AI. The rise of agent AI increases the increase in web traffic, increasing the need for security and supporting Cloudflare’s business.

Insider trading is the same for this stock: broad-based, including senior executives, though

the pace seems slower than the stuffing. Other differences include a top 10% insider ownership, which is fundamental to insider sales practices; insiders still own the majority of this stock, and it has risen dramatically over the past few years, more than 500% at its peak.

Also, offset by analysts and institutions. The consensus of 31 analysts is Moderate Buy; there is a bullish bias within the data, coverage is increasing, sentiment is positive, and price targets are firming. Up nearly 70% on a TTM basis, the consensus estimate predicts a modest double-digit upside, while the final range is above the current high. Institutions, which had been selling in earlier areas, returned to accumulation at the start of Q2, limiting risk to investors. Catalyst will come with the July earnings report. The market expects another 30% revenue growth and will be pleasantly surprised.

The NET chart shows the stock heading for new highs with institutional and analyst support.

Companies in this article:

Company	Current Price	Price Changes	Dividend Yield	The P/E ratio	Consensus ratio	Consensus Price Target
Seagate Technology (STX)	$1,014.01	-7.3%	0.29%	95.77	Buy Medium	$831.79
Texas Instruments (TXN)	$304.66	-8.3%	1.86%	52.18	Hold on	$269.61
Cloudflare (NET)	$225.74	+3.4%	N/A	-901.34	Buy Medium	$241.35

Experience

Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.

Professional Background: Thomas Hughes is the Managing Partner of Passive Market Intelligence LLC, a market research platform he founded in 2023 with the motto: “We watch the market so you don’t.” He has worked as a blogger, stock market analyst, and independent analyst since 2010 and has been involved in trading and investing since 2005.

Confirmation: He has an Associate of Arts in Culinary Technology-training that has enhanced his discipline, attention to detail, and ability to anticipate results, all of which continue in his work as a market analyst.

Financial Experience: Thomas has been writing about finance and investing since 2011, when he discovered it could be more than a personal passion—it could be a career. He has been a contributing writer for InsiderTrades.com since 2019.

Writing Focus: He specializes in the S&P 500, small-cap stocks, high-yield diversification strategies, consumer staples, retail, technology, oil, and equities. His analysis combines chart-based technical setups with key fundamentals, helping readers identify potential trends.

How to Invest: Thomas takes a hybrid approach that combines technical analysis with in-depth fundamental research. He often writes about macroeconomic shifts, wage trends, and sentiment-based trading signals.

Motivation: Thomas became interested in stocks after attending a seminar on buying and selling your own stocks. That experience opened his eyes to the power of the market and sparked a lifelong interest in investing.