Cathie Wood’s ARK Invest sold $75 million of Advanced Micro Devices Inc. stock on Friday, taking profits after the chipmaker’s shares rallied 77 percent in the past month.
“We view Intel's results as a precursor for a huge step-up for AMD's CPU franchise," D.A. Davidson analyst Gil Luria wrote in a research note, upgrading AMD to a buy.
ARK sold 215,643 AMD shares across five of its exchange-traded funds, according to the firm's daily trade report. The sale followed a 13.9 percent single-day jump in AMD's stock, which was fueled by rival Intel Corp.'s strong earnings report that sent its own shares up 23 percent.
The move may signal a strategy shift to lock in gains from the AI-driven semiconductor rally. While trimming its AMD position, ARK also bought shares of Amazon.com Inc. and nuclear-reactor developer X-Energy Inc.
The broader semiconductor sector has experienced a significant run-up, with investors betting that the artificial intelligence boom will continue to drive demand. Intel’s CEO Lip-Bu Tan said on an earnings call that the "CPU is reinserting itself as the indispensable foundation of the AI era," a sentiment that has lifted chip stocks across the board. Following Intel's results, D.A. Davidson raised its price target on AMD to $375 from $220.
ARK’s trade reflects a profit-taking strategy, but not a full exit. Despite the large sale, AMD remains the third-largest holding in the flagship ARK Innovation ETF (ARKK), with a position valued at $416 million, according to fund data. The firm's other recent trades included trimming positions in Caterpillar, Rocket Lab, and Teradyne.
The sale provides a signal to investors about how one prominent tech bull is navigating the current market, taking profits on high-flying stocks while rotating into other tech names. Investors will now be closely watching AMD's first-quarter results, scheduled for May 5, for further details on AI-driven growth.
This article is for informational purposes only and does not constitute investment advice.
