Key Highlights
- Ark Invest liquidated 215,643 shares of AMD valued at approximately $75 million following a dramatic 70% monthly gain
- On April 24, AMD shares rocketed 13.9% higher, propelled by Intel’s impressive quarterly results
- Intel’s stock soared 23% following reports of robust data center CPU sales fueled by artificial intelligence investments
- Despite the divestment, AMD continues as the third-largest position in Ark Innovation ETF with $416 million in holdings
- D.A. Davidson elevated AMD to Buy status, boosting its target price from $220 to $375
Cathie Wood’s investment firm offloaded approximately $75 million in Advanced Micro Devices shares on April 24, capitalizing on AMD’s remarkable 70% appreciation over the preceding 30 days.
Advanced Micro Devices, Inc., AMD
According to Ark Invest’s daily trading disclosures, the firm divested 215,643 AMD shares distributed across its portfolio of funds. The transaction was executed at a closing share price of $347.81.
The transaction appears to be a classic profit-taking maneuver. Despite the sale, AMD maintains its position as the third-most significant holding within the Ark Innovation ETF (ARKK), accounting for $416 million in market capitalization.
AMD’s explosive momentum was ignited by Intel’s performance. The semiconductor giant delivered impressive first-quarter financial results and elevated forward guidance, highlighting accelerating demand for data center processors from enterprises expanding their AI infrastructure capabilities.
Intel’s stock skyrocketed 23% on April 24. The positive spillover effect significantly benefited AMD, propelling its shares 13.9% higher in that trading session alone.
During the earnings conference call, Intel CEO Lip-Bu Tan stated emphatically: “The CPU is reinserting itself as the indispensable foundation of the AI era.”
Analyst Community Responds
Gil Luria, an analyst at D.A. Davidson, elevated AMD’s rating to Buy from Neutral while raising the firm’s price objective to $375 from $220.
“We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise,” Luria noted in his research. He identified structural demand stemming from agentic AI applications as a significant catalyst.
Both AMD and Intel have implemented multiple CPU price increases throughout this year, with average hikes ranging from 10% to 15%, as reported by Nikkei Asia.
AMD is scheduled to announce its first-quarter financial results on May 5. Market participants will be scrutinizing guidance regarding AI-driven revenue streams.
Wood’s Investment Philosophy
ARKK has declined 1.76% year-to-date, contrasting with the S&P 500’s 4.67% advance during the identical timeframe.
Wood has been outspoken regarding her market perspective. She anticipates AI, robotics, and biotechnology will fuel what she characterizes as a “great acceleration” in worldwide economic expansion.
“We’re not going into the Great Depression, we’re going into the great acceleration,” she remarked during a March Bloomberg podcast interview.
She has additionally contended that AI technologies are deflationary in nature, referencing training expenditures declining 75% annually and inference costs plummeting as much as 98% each year.
Notwithstanding that bullish stance, ARKK has experienced approximately $1.12 billion in net redemptions during the 12-month period ending April 21, based on data from ETF research provider VettaFi.
Over a five-year horizon, ARKK has generated an annualized return of -9.01%, compared to the S&P 500’s 13.01% performance.
GuruFocus calculates AMD’s GF Value at $212.86, indicating the stock trades at a 63.4% premium to its estimated fair value at current levels. Corporate insiders at AMD have sold $63.9 million worth of shares during the past three-month period.
AMD’s Q1 2026 earnings are scheduled for May 5
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