TLDR:
- Cathie Wood’s Ark Next Generation Internet ETF purchased 7,786 AMD shares worth $750,492
- AMD now ranks #13 in ARKW ETF, representing 1.82% of the portfolio
- AMD expected to report 50% year-over-year earnings growth next week
- Analysts project Q1 revenue of $7.12 billion, up 30.1% from last year
- AMD stock carries a moderate Buy consensus with 44.8% upside potential
Cathie Wood, the hedge fund manager known for her bold investment strategies at Ark Invest, has made a surprising move by increasing her position in semiconductor giant Advanced Micro Devices (AMD). The purchase comes just days before AMD’s anticipated Q1 2025 earnings release, which analysts expect to show strong growth despite recent industry headwinds.
On April 29, Wood’s Ark Next Generation Internet ETF (ARKW) added 7,786 shares of AMD valued at approximately $750,492. This addition comes despite ongoing uncertainty surrounding export restrictions on advanced chips, including those used for artificial intelligence applications.
Following this latest purchase, AMD now ranks as the 13th largest holding in the ARKW ETF. It represents 1.82% of the total portfolio value.
This move signals Wood’s continued confidence in the chipmaker’s prospects. AMD stock has struggled in 2025, losing 20.5% year-to-date.
The timing of Wood’s purchase is particularly interesting. AMD is scheduled to release its Q1 2025 earnings report on May 6.
Wall Street analysts expect AMD to deliver strong results. The consensus estimate calls for earnings of $0.93 per share, representing a 50% increase from the same period last year.
Revenue projections are equally impressive. Analysts anticipate AMD will report $7.12 billion in revenue, up 30.1% year-over-year.
Analyst Sentiment and Earnings Expectations
The stock currently maintains a moderate Buy consensus rating. This assessment is based on 22 Buy ratings and 12 Hold ratings from Wall Street analysts.
The average price target for AMD stands at $139.13. This suggests a potential upside of 44.8% from current trading levels.
Recent analyst activity indicates growing optimism about AMD’s earnings prospects. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP (Expected Surprise Prediction) of +0.74%.
AMD also carries a Zacks Rank of #3 (Hold). According to Zacks’ research, stocks with this combination of positive ESP and favorable rank tend to beat earnings estimates about 70% of the time.
The company’s recent earnings history reinforces this positive outlook. AMD has exceeded consensus EPS estimates in each of the past four quarters.
In the most recent quarter, AMD posted earnings of $1.09 per share, surpassing the expected $1.07 per share and delivering a surprise of +1.87%.
While the consensus EPS estimate for the upcoming quarter has been revised downward by 2.44% over the past 30 days, this adjustment doesn’t seem to have dampened overall analyst enthusiasm.
Wood’s AMD purchase was part of a broader portfolio adjustment. On the same day, she also added shares of Canadian e-commerce company Shopify (SHOP) and expanded holdings in several biotech firms.
Interestingly, Wood simultaneously reduced her position in gene-editing company CRISPR Therapeutics (CRSP), which had long been a favorite in her portfolios. She also continued trimming her stake in social media giant Meta Platforms (META).
AMD’s upcoming earnings report will be closely watched by investors looking for signs that the semiconductor company can maintain growth momentum in an increasingly competitive market.
The company’s stock performance following the announcement will likely depend not just on whether AMD meets or exceeds estimates, but also on management’s commentary about business conditions and future outlook.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
