Key Points
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In February, when AMD’s stock price was dropping, Cathie Wood scooped up $28 million worth of shares.
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Ark then sold off more than $8 million worth of AMD stock on July 6.
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On the day it sold AMD, Ark invested $5.6 million into another company.
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On July 6, Cathie Wood was busy with her Ark empire, selling several positions and buying others. One particularly notable trade reported on the day was Advanced Micro Devices (NASDAQ: AMD).
Through Ark Innovation, Wood sold over 15,000 shares of AMD, which were valued at more than $8 million.
That may seem like a cause for concern or an early warning that trouble could be brewing for AMD, as Ark may be seeing something retail investors might be missing. However, the selling is likely more about portfolio management than about anything wrong with AMD.
The AMD buy-the-dip opportunity in February
On Feb. 3, Advanced Micro Devices reported its 2025 fourth-quarter results and 2025 full-year results. The updates weren’t well-received. From Feb. 3 to Feb. 4, the stock price sank 17.3%. While some were panicking, Wood saw it as a buying opportunity.
On Feb. 4, five of Ark’s exchange-traded funds (ETFs) purchased a total of more than 141,000 AMD shares, which were valued at a little more than $28 million at the time. In a few short months, that proved to be a profitable move.
A monster first quarter for Advanced Micro Devices
AMD began to find its footing in April, and the stock price really took off after May 5, when the company reported its 2026 first-quarter earnings. Revenue of $10.2 billion and earnings per share of $1.3 billion easily beat expectations of $9.8 billion and $1.2 billion. For the second quarter, its revenue forecast of $11.2 billion also beat expectations of $10.5 billion.
The stock price opened at $351.51 on May 5, the day of the earnings report. When it opened on May 6, it had climbed to $409.49. A few months later, on July 7, the AMD stock price closed at $516.11 per share.
Portfolio management at work
On the same day (July 6) that the Ark Innovation ETF sold more than $8 million in AMD shares, three of Ark’s ETFs bought $5.6 million in Kratos Defense and Security Solutions shares.
With the AMD stock price up about 140% on the year, Wood may see it as a little overheated. But rather than there being a major cause for alarm with the company’s operations, Ark is likely just practicing portfolio management.
With Advanced Micro Devices’ stock having run up so strongly since February, it’s more likely that some profit-taking is underway to fund other positions.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Kratos Defense & Security Solutions. The Motley Fool has a disclosure policy.
