AMD Stock Sale: Should Long-Term Investors Follow Ark Invest's Lead?

Cathie Wood's investment firm, Ark Invest, sold $11.8 million of Advanced Micro Devices (AMD) stock on July 17. This move comes after AMD delivered returns of around 180% over the last year, making it a competitive player in the AI accelerator space alongside Nvidia.

The sale might indicate that investors should sell their shares as well, but analysts say this is not necessarily true for long-term investors. The recent Advancing AI 2026 event had multiple announcements, and AMD's stock has traded in a narrow range since May.

Despite the sale, AMD remains Ark Invest's second-largest position across all funds, indicating that Wood and her team continue to believe in its future growth potential. In fact, AMD estimates its total addressable market to be $2 trillion by 2030, with partnerships with companies like OpenAI and Meta Platforms driving that growth.

Long-term investors are advised to maintain their AMD holdings, as the company's earnings multiple is not high enough to derail its long-term growth trajectory. The recent sale might have been a measure of Ark Invest's active trading approach, rather than a sign to sell for other investors.