Cathie Wood Sells AMD at High Prices! $68.1 Million Sold in July, Should You Follow?

Following a nearly 180% surge in Advanced Micro Devices (AMD-US) stock over the past year, Cathie Wood's Ark Invest has chosen to take partial profits, drawing market attention. However, analysts believe this move is more about asset allocation adjustments than a bearish outlook on AMD's future. With sustained growth in AI chip demand, a $2 trillion market opportunity by 2030, and collaborations with tech giants like OpenAI, AMD's long-term growth prospects remain highly favorable.

According to The Motley Fool, AMD's stock has seen a remarkable surge over the past year. As of Monday (July 3), AMD's cumulative gain reached approximately 180%.

As the stock price continues to rise, valuations have also surged, leading to speculation that this is one of the key factors behind Ark Invest's recent adjustment of its AMD holdings.

While AMD's recent "Advancing AI" conference in 2026 has sparked some hype, market analysts believe that for long-term investors, following suit with sales at this time may not be a wise decision.

According to disclosed data, Ark Invest has been gradually selling AMD shares in July, with a single-day sale of $11.8 million on July 17, and a total sale of $68.1 million for the month.

It's worth noting that Ark Invest is known for its active trading style, favoring short-term swing trading over pure long-term holding strategies. Therefore, this selling action to some extent also reflects the fund's consistent trading logic and does not necessarily indicate a more conservative view of AMD's fundamentals.

From a profit perspective, the current timing is indeed a reasonable opportunity for taking profits at high levels, realizing gains, or diversifying asset allocation to manage risk.

AMD's stock price has been in a range-bound pattern since May, with a current P/E ratio of 160x. Even when calculating future earnings, the estimated forward P/E ratio also reaches 65x, indicating that the stock price has to some extent outpaced fundamental performance.

However, analysts believe that this valuation level is not sufficient to shake AMD's long-term growth momentum.

First, at this AI conference, AMD announced several growth engines, including the 6th generation AMD EPYC processors, MI400 series GPUs, and the Helios rack-scale solutions, which could potentially help the company play a significant role in the AI wave.

Second, AMD estimates that its total potential market size will reach $2 trillion by 2030. AMD's first-quarter revenue in 2026 exceeded $10 billion, and its annual revenue in 2025 is expected to be close to $35 billion, representing only a small part of its potential growth space that has been developed so far.

Additionally, AMD's collaborations with OpenAI, Anthropic, Meta (META-US), and Cisco Systems (CSCO-US) could also become important growth drivers in the future.

On the other hand, despite Ark Invest's recent reduction in AMD holdings, AMD remains the fund's second-largest holding, second only to Tesla (TSLA-US), indicating that Ark and its team still have high confidence in AMD's long-term development prospects.