Cathie Wood's ARK Invest Shifts Millions Into Crypto Plays While Trimming AMD Stake

ARK Invest's Latest Moves

Cathie Wood's ARK Invest made significant portfolio adjustments on Wednesday, November 19, according to daily fund disclosures. The investment firm continued its bullish stance on cryptocurrency plays while trimming its position in Advanced Micro Devices (NASDAQ:AMD).

AMD's Ambitious Growth Plans

At its recent Analyst Day, AMD set an ambitious tone by outlining plans to drive expansion centered on AI and targeting the $1 trillion compute market. The company highlighted expected growth across data-center, client, and embedded segments, fueled by next-generation architectures and an advancing AI roadmap.

CEO Lisa Su framed this as the beginning of a multi-year uptrend, supported by a strengthened product pipeline and strategy to capture more high-performance computing demand.

Wall Street's Mixed Reaction

While many analysts responded positively, viewing AMD as better positioned to challenge Nvidia's dominance in AI chips, some maintained caution.

Seaport analyst Jay Goldberg emerged with "mixed views" following the event. He acknowledged AMD's impressive five-year plan targeting $100 billion in annual revenue by 2030 with gross margins of 55%-58% and operating margins above 35%. The MI500's early specs appeared strongly competitive with Nvidia's Vera Rubin platform.

However, Goldberg noted that the $100 billion target represents just a 10% share of AMD's projected $1 trillion total addressable market for silicon by 2030. He described this as "more than they have now, but not quite inspirational."

Concerns About Execution and Concentration

Goldberg raised several concerns, including:

• AMD's GPU and AI accelerator market share would sit in the mid-single digits excluding CPUs
• Customer concentration risk with heavy near-term reliance on OpenAI
• Uncertainty about OpenAI's funding and demand allocation across multiple chip lines

Despite these concerns, Goldberg still considers AMD "one of the best run semiconductor companies" but remains "cautious on how steadily" it can execute its roadmap.

Market Outlook

Goldberg maintains a Neutral rating on AMD shares without a fixed price target. Meanwhile, the broader analyst consensus rates AMD a Moderate Buy with an average price target of $281.78, suggesting 26% upside potential.