Advanced Micro Devices Inc. (NASDAQ:AMD) is facing a new test after Cathie Wood’s ARK Invest trimmed its position following a roughly 120% gain in the stock this year.
ARK sold 37,977 AMD shares across multiple ETFs on Wednesday, worth about $18.1 million, according to GuruFocus. The latest transaction adds to a series of AMD reductions by ARK this year, although the firm remains a significant shareholder through its ETFs.
The move is notable because it comes as investors reassess the AI semiconductor trade following Nvidia Corp.’s latest results. Nvidia’s strong outlook has reinforced its dominant position in AI accelerators, putting additional focus on whether rivals such as AMD can justify their sharply higher valuations.
ARKK Is Trimming, Not Exiting
For ETF investors, Wood’s move is less straightforward than a bearish call on AMD.
The flagship ARK Innovation ETF (NYSE:ARKK) still holds roughly $195 million of AMD stock, equivalent to around 3% of the portfolio, according to the reported holdings. ARKK is an actively managed ETF built around companies tied to disruptive innovation.
That makes the latest sale look more like portfolio management after a major run than a wholesale retreat from AMD.
The Bigger ETF Question
The selling comes as AMD’s gains have made semiconductor exposure increasingly expensive for investors who entered earlier in the rally.
That creates an important question for AI-focused ETFs: Are investors still buying the broad AI theme, or are they becoming more selective about which chipmakers can deliver the next leg of growth?
The broader AI trade, meanwhile, remained firmly in focus. AI-focused ETFs rallied sharply Thursday after Nvidia’s earnings fueled fresh optimism around the AI boom. The Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) gained 2.1%, with holdings including Palantir Technologies Inc (NASDAQ:PLTR), Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), SpaceX (NASDAQ:SPCX).
The iShares A.I. Innovation and Tech Active ETF (NYSE:BAI) rose 1.7% and has more direct semiconductor exposure, including Micron Technology Inc (NASDAQ:MU), Nvidia, AMD, Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) and Broadcom Inc (NASDAQ:AVGO).
The divergence is important for AMD investors. Nvidia’s post-earnings surge helped lift not only funds concentrated in AI applications and software, but also ETFs holding the semiconductor names powering the AI buildout.
That backdrop makes Wood’s AMD sale look less like a retreat from AI and more like a shift within a still-bullish theme. ARK is trimming a stock that has already gained about 121% this year, even as the broader AI ETF complex continues to attract investor enthusiasm.
So far, Wood’s AMD sale looks more like rotation than capitulation. But with AMD up about 120% in 2026, and forward 12-month PE ratio being approximately 62, the important question may be whether ETF investors continue rewarding the entire AI-chip trade.
Photo: Courtesy Ark Invest
