ARK’s $15M Stock Sale Raises Questions About AMD’s 2027 Outlook

Advanced Micro Devices, Inc. (AMD) currently stands as one of the market’s strongest performers. Over the past year, the AMD stock price has surged by approximately 285%, including an increase of nearly 180% in 2026 alone. By comparison, market leader Nvidia (NVDA) has grown by roughly 25% over the past year and about 21% in 2026. These numbers highlight AMD’s recent market dominance. Furthermore, AMD’s stock price recently reached a brand-new all-time high as the firm’s market capitalization surpassed the $1 trillion milestone. Even though AMD has clearly outperformed Nvidia over the past year, investors should be aware of potential risks ahead.

AMD Stock May Be At Significant Risk In 2027

AMD currently maintains a price-to-earnings ratio above 85. In contrast, Nvidia’s price-to-earnings sits at 26, while Broadcom’s is at 32. This renders AMD shares considerably more costly than both Nvidia and Broadcom. Such a disparity may indicate that AMD’s valuation has become disconnected from its actual growth potential, which could lead to future challenges. Consequently, the AMD stock price might experience a correction toward the end of 2026 or during 2027.

Also Read: Citi Raises AMD Stock Price Target, Cites Meta Muse Release

Investors must also weigh the recent actions of Cathie Wood’s ARK Invest, which disposed of more than $15 million in AMD shares. This transaction followed AMD’s climb to a record high earlier this month. Previously, the investment firm also offloaded $110 million worth of AMD stock. While these sell-offs may simply represent profit-taking, they could also signify something deeper. Even as ARK reduced its AMD position significantly, the firm simultaneously expanded its Nvidia exposure by purchasing close to $81 million in Nvidia shares. This strategic shift may indicate that the company feels more bullish about Nvidia and anticipates a sharp correction for AMD.

Frequently Asked Questions

How much has the AMD stock price grown recently?

The AMD stock price has climbed by nearly 285% over the past year and by approximately 180% in 2026 alone, pushing its market cap past the $1 trillion mark.

How does AMD’s valuation compare to Nvidia and Broadcom?

AMD features a price-to-earnings ratio exceeding 85, making it significantly more expensive than Nvidia, which sits at a price-to-earnings ratio of 26, and Broadcom, which is at 32.

When might AMD stock face a potential correction?

Due to its high valuation and recent market activity, analysts suggest the stock could potentially face a correction in late 2026 or in 2027.

What recent stock sales has ARK Invest made regarding AMD?

ARK Invest recently sold more than $15 million worth of AMD shares following the stock’s all-time high earlier this month, coming on top of a previous sale of $110 million worth of AMD shares.

Is ARK Invest buying other semiconductor stocks?

Yes, while reducing its AMD holdings, ARK Invest increased its exposure to Nvidia by purchasing nearly $81 million worth of Nvidia stock.