Advanced Micro Devices (AMD) is a global semiconductor leader that has transformed from a secondary chipmaker into a primary force in high-performance and adaptive computing. AMD designs a diverse range of digital semiconductors, including its flagship Ryzen CPUs for personal computers and EPYC processors for data centers. At present, the company has strategically pivoted toward artificial intelligence, challenging industry incumbents with its Instinct AI accelerators and the integration of Xilinx’s adaptive technology. Today, AMD’s silicon powers everything from the world’s fastest supercomputers to the latest gaming consoles and cloud infrastructures.
Founded in 1969, it is headquartered in Santa Clara, California.
About AMD Stock
AMD’s stock saw a meteoric 77% rise in 2025; however, it has faced a cooling period in early 2026, currently down about 3% year-to-date (YTD). This pullback reflects investor caution regarding valuation premiums and a sequential revenue decline guided for the first quarter. Despite the near-term volatility, the stock remains a favorite for growth investors, supported by a 52-week range of $76.48 to $267.08. Analysts are closely watching for a second-half rally as new AI products like the MI450 begin to contribute to the top line.
In comparison to the S&P 100 Index ($IUXX), which represents the largest and most established U.S. companies, AMD has recently lagged the benchmark's relative stability. However, over a rolling 12-month period, AMD's aggressive expansion into the AI data center market has historically allowed it to significantly outperform the index's more diversified components, which are less sensitive to the semiconductor "supercycle."
AMD Displays Strong Results
AMD concluded a "defining" fiscal year 2025 with record Q4 revenue of $10.3 billion, a 34% increase year-over-year (YoY). On a non-GAAP basis, the company reported record net income of $2.5 billion and a record diluted EPS of $1.53, surpassing analyst consensus. For the full year, AMD achieved record revenue of $34.6 billion, reflecting its successful execution across high-performance and AI platforms.
The results were primarily driven by the Data Center segment, which hit a record $5.4 billion in quarterly revenue, up 39%, bolstered by the rapid scaling of AMD Instinct GPU shipments and strong EPYC processor demand.
Looking into 2026, AMD expects Q1 revenue of approximately $9.8 billion, representing 32% year-over-year growth but a 5% sequential decline. This guidance accounts for typical seasonality and shifting product cycles. A major catalyst for the latter half of the year is the launch of the Helios AI rack architecture and the MI450 chip, which are expected to ramp up in the third quarter.
Cathie Wood Offloads AMD
During a period of broad-based de-risking, Cathie Wood’s ARK Invest executed a significant selloff across its flagship innovation and technology ETFs. The firm focused on trimming high-growth AI and semiconductor names, resulting in the offloading of over 57,000 shares of Advanced Micro Devices. This move was part of a larger strategy to scale back exposure to the AI supply chain, which also saw heavy selling in Nvidia (NVDA) and Taiwan Semiconductor Manufacturing (TSM).
The reduction in AMD suggests a tactical pivot toward profit-taking and rebalancing as ARK rotates out of large-cap technology and speculative internet platforms. While the fund aggressively lightened its positions in names like Meta (META) and Roku (ROKU), it remained a net seller of the semiconductor sector to manage volatility.
Despite this trimming, the broader analyst community remains focused on AMD’s long-term data center potential. However, for ARK, the recent activity signals a cautious stance on near-term valuation premiums in the chip market, preferring to consolidate capital into a select few healthcare and genomics "accumulation" names like Tempus AI (TEM) and Circle Internet (CRCL).
Should You Sell AMD Stock?
While Cathie Wood’s ARK Invest recently trimmed over 57,000 shares, suggesting short-term profit-taking, the broader analyst community remains optimistic. AMD stock currently holds a "Moderate Buy" consensus based on 45 ratings, featuring 30 "Strong Buy" and 13 "Hold" designations. With a mean price target of $286.37, the stock offers a significant 37% upside potential from current levels.
For long-term investors, the technical pressure from ARK's rebalancing may be overshadowed by AMD's massive AI data center opportunity and upcoming high-performance chip cycles.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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