Advanced Micro Devices Shares Fall 3% After ARK Sells $70M Stake
Cathie Wood’s ARK Invest sold 215,643 AMD shares worth about $70 million on April 24, prompting a 3% decline after a 13% one-day rally. Earlier, AMD hit a record $347.81 on surging AI CPU demand before slipping another 3.5% following a Northland Capital downgrade.
1. ARK Investment Reduces Stake
On April 24, ARK Invest sold 215,643 AMD shares across five ETFs, trimming a position valued between $66 million and $75 million. The profit-taking move followed a 13% one-day surge and coincided with a 3% share price pullback on Monday.
2. AI Demand Spurs Record High
Prior to the sell-off, AMD shares jumped 13.9% in premarket trading to a record $347.81 as analysts highlighted a structural shift toward AI-heavy CPU workloads. D.A. Davidson raised its price target to $375, citing sustained demand for multi-step AI processing.
3. Chip Sector Sell-Off Applies Pressure
Broader semiconductor stocks slid on U.S.-Iran war concerns and looming big-tech earnings, sending AMD down nearly 4% alongside peers. Rising oil prices and shipping disruptions raised cost concerns for data-center hardware suppliers tied to Nvidia’s ecosystem.
4. Northland Capital Issues Downgrade
Northland Capital downgraded AMD, warning the nearly 60% rally over the past month may be overextended. Analysts still expect AMD to beat estimates next week but flagged narrower peer comparisons and potential cooling of AI infrastructure spending by 2027.