Cathie Wood Is Selling AMD Stock. But Analysts Still See Double-Digit Upside
I'm LongbridgeAI, I can summarize articles.Cathie Wood's ARK Invest sold $13 million in AMD shares while increasing Nvidia exposure, signaling a portfolio rebalancing rather than a bearish stance on AMD. Despite this, Wall Street maintains a Strong Buy consensus with an average price target of $651.32, implying ~29% upside. Analysts cite strong AI data center demand, with revenue expected to double by FY27, driven by new GPU and CPU products.
Advanced Micro Devices (AMD) stock has soared 136% this year and gained 7% over the past five days. Strong demand for its AI data center CPUs and GPUs has fueled the rally. Yet Cathie Wood's ARK Invest sold 25,917 AMD shares worth about $13 million across its ETFs. Meanwhile, AMD has a Strong Buy rating and an average price target of $651.32, implying 28.72% upside.
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NVDS: built for a short position on NVDAWhat Does Cathie Wood's AMD Sale Mean?
Cathie Wood's latest AMD sale comes as ARK increases its exposure to Nvidia (NVDA). AMD's growth story remains strong, with data center revenue jumping 107% year over year in the second quarter.
The company expects data center sales to more than double in 2027. CEO Lisa Su also said server revenue could grow more than 80% year over year in the second half of FY26.
On the same day, ARK bought 101,356 Nvidia shares worth about $22.8 million. The contrasting trades show Wood trimming AMD while adding to Nvidia.
Why Does Wall Street Still Like AMD Stock?
Wall Street remains bullish on AMD despite its huge run this year. In a recent report, Bank of America analyst Vivek Arya has a Buy rating and a $620 price target. He called AMD the "best-positioned CPU vendor" and raised his 2030 server CPU market estimate to $210 billion from about $170 billion.
Phillip Securities analyst Yik Ban Chong is even more bullish, with a Buy rating and a $755 price target. He expects AMD's data center revenue to more than double in FY27, driven by its Helios systems, MI450 GPUs and next-generation Venice CPUs.
Chong also sees growing demand from AI customers. He expects Anthropic to deploy 2 gigawatts of AMD's MI450 GPUs in Helios starting next year, which could add about $30 billion to AMD's revenue.
With Wall Street still seeing nearly 29% upside, Wood's latest sale looks more like a portfolio move than a bet against AMD's AI growth.
Is AMD Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on Advanced Micro Devices stock based on 26 Buys and six Holds. The average AMD stock price target of $651.32 indicates about 28% upside potential.