TLDR
- ARK Innovation ETF sold 138,432 AMD shares worth $22.3 million on September 24, 2025
- Wood increased positions in Chinese tech giants Alibaba and Baidu during same trading session
- AMD faces growing competition from Nvidia’s $5B Intel investment and $100B OpenAI commitment
- Broadcom secured $10B order for AI custom chips, intensifying semiconductor market rivalry
- Wall Street maintains Moderate Buy rating on AMD with 17% upside potential to $187.73 target
Cathie Wood’s ARK Innovation ETF executed a major portfolio restructuring on September 24, selling $22.3 million worth of Advanced Micro Devices stock while simultaneously boosting holdings in Chinese technology companies. The strategic moves come as competition in the semiconductor industry reaches new heights.
The ARK Innovation ETF offloaded 138,432 AMD shares in its largest single transaction of the trading day. Wood’s fund simultaneously increased positions in Alibaba, which surged 8.19%, and Baidu, which climbed 5.85%.
The timing of Wood’s AMD exit coincides with mounting competitive pressures facing the semiconductor company. Nvidia recently announced a massive $5 billion investment in Intel, potentially strengthening AMD’s primary rival in the processor market.
Nvidia’s separate $100 billion commitment to OpenAI further demonstrates the enormous capital flowing into artificial intelligence infrastructure. This investment wave could reshape demand patterns across the entire semiconductor landscape.
Broadcom Adds Competitive Pressure
Competitive concerns intensified when Broadcom announced a $10 billion order from an undisclosed new customer for AI custom chips. This order highlights robust demand for specialized processors beyond traditional GPU manufacturers like Nvidia and AMD.
The Broadcom announcement underscores the fragmented nature of the AI chip market. Companies are increasingly seeking custom solutions rather than relying solely on standard processors.
AMD has been working to establish itself as a credible alternative to Nvidia in AI processing applications. However, the recent competitive developments create additional challenges for the company’s market share ambitions.
AMD Stock Outlook Remains Positive
Despite Wood’s divestiture, Wall Street analysts maintain cautious optimism about AMD’s prospects. The stock carries a Moderate Buy consensus rating based on recommendations from 34 analysts.
Twenty-one analysts recommend purchasing AMD shares, while 13 suggest holding current positions. No analysts currently rate the stock as a sell recommendation.
The average analyst price target of $187.73 implies approximately 17% upside potential from current trading levels. This target reflects expectations for continued growth in AMD’s core markets.
AMD stock performance has been mixed recently, declining 4% over the past month while maintaining gains of more than 33% year-to-date. The semiconductor company continues competing with Nvidia for dominance in data center processors and graphics processing units.
Wood’s decision to reduce her AMD position reflects broader portfolio management strategies at ARK Invest. The fund manager is known for making concentrated investments in disruptive technology companies.
Chinese Tech Bet Continues
While reducing semiconductor exposure, Wood continued building positions in Chinese technology companies. Both Alibaba and Baidu have been investing heavily in artificial intelligence and cloud computing infrastructure.
The Chinese tech investments represent Wood’s ongoing confidence in Asian technology markets despite regulatory uncertainties.
Broadcom’s $10 billion AI chip order announcement occurred on the same trading day as Wood’s AMD stock sale, highlighting the dynamic nature of semiconductor market competition.
