Insiders are selling big tech stocks such as Seagate Technologies (NASDAQ: STX), Texas Instruments (NASDAQ: TXN), and Cloudflare (NYSE: NET), sending a signal to investors. The caveat is that this signal is contrarian, as their respective stocks are up solidly in the double digits, with triple-digit gains in some cases, driven by analyst upgrades and supported by institutional investors. The gains are underpinned by their respective strengths, which investors should buy into. Ultimately, it is AI, and the AI boom, that drives their price action, and the AI boom is still booming. Summer price weakness is a buying opportunity if it presents itself.
Seagate Technology: Making the Other Memory Critical for AI
Seagate Technology insiders aren't just selling shares, but are ramping activity as of Q2 2026. The selling is broad-based and tracking near historically high levels, but given the stock’s 575% trailing 12-month (TTM) increase, it is understandable. Insiders are locking in profits and repositioning portfolios, as they should, given the opportunity.
The opportunity, however, is far from played out, as Seagate is critical to AI. While DRAM and high-bandwidth memory (HBM) get all the attention, they are short-lived memory solutions strictly for AI training and applications. Seagate makes the memory that permanently stores all the data. Its magnetic and flash applications don’t require power, enabling safe, cheap, long-lasting information storage.
Seagate Technology’s revenue and earnings growth reflect its importance to the industry. Revenue growth is accelerating, margins are widening, and strength is forecast to persist for at least the next five years. The trends, which include quarterly outperformance, have the analysts in a bullish posture, forecasting fresh all-time highs in the high-end range, with coverage, sentiment, and price targets improving.
The biggest risk is the institutions, which own more than 90% of the stock and sold shares in early Q2. If this activity continues, STX will still struggle to advance. The next visible catalyst is the fiscal Q4 earnings results expected in late July, but results from other AI leaders, including NVIDIA (NASDAQ: NVDA), could prompt accumulation. A discount to the stock price could likewise prompt them into accumulating shares again.
Texas Instruments: Vital at All Levels of the AI Stack
Texas Instruments is vital to AI at all levels of the stack because its analog products manage power, sense data, and connect components together. The data center build-out fuels business today; automotive, industrial, and IoT markets will fuel it over the long term. Insider selling compares to STX, as it is broad-based, ramping in Q2, and catalyzed by historically high share prices.
Texas Instruments' 2026 results reveal the strength of its position. Revenue reverted to growth in 2025 and has been accelerating sequentially as of mid-2026. Results include outperformance relative to analysts' forecasts and hot guidance, prompting them into a bullish posture. Looking ahead, TXN is expected to sustain modest growth and margin improvement over the coming years.
While the reported consensus as of late June lags price action, the stock is up more than 40% on a TTM basis, with Q2 revisions in the high-end range, suggesting fresh highs later this year. The difference is that early Q2 institutional activity is bullish, suggesting a clearer path to higher prices.
Cloudflare: Front-Line Security for 20% of the Internet
Cloudflare is an AI-critical name because its platform acts as front-line security for approximately 20% of the Internet. Services include reverse proxying, which provides a barrier between Internet users and endpoint websites, and is important today because of agentic AI. The rise of agentic AI drives an exponential increase in web traffic, heightening the need for security and underpinning Cloudflare’s business.
Insider selling is the same for this stock: broad-based, including key executives, though the
pace appears to be slowing rather than ramping. Other differences include the high 10% insider ownership, which is fundamental to insider selling habits; insiders still own a lot of this stock, and it's up significantly over the past few years, more than 500% at its peak.
Again, the offset is analysts and institutions. The consensus of 31 analysts is a 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 forecasts modest double-digit upside, while the high-end range is well above existing highs. Institutions, which had been selling in earlier quarters, reverted to accumulation in early Q2, limiting risk for investors. The catalyst will likely come with the July earnings report. The market expects another 30% revenue growth and will likely be pleasantly surprised.
The article "These AI Stocks Have Insider Selling, But Buyers Still Have a Reason to Stay" first appeared on MarketBeat.
