TLDR:
- Ark Invest’s Cathie Wood purchased 7,786 AMD shares valued at $750,492
- AMD stock has dropped 20.5% year-to-date but analysts see 44.8% upside potential
- Q1 earnings report expected May 6 with projected EPS of $0.93, up 50% year-over-year
- Revenue forecast at $7.12 billion, representing 30.1% growth from previous year
- AMD has beaten earnings estimates for four consecutive quarters
Ark Invest founder Cathie Wood has made an intriguing move in the semiconductor space, adding to her position in chip manufacturer Advanced Micro Devices (AMD) just days before the company’s upcoming earnings announcement.
The purchase was made through Wood’s Ark Next Generation Internet ETF (ARKW) on April 29.
The fund acquired 7,786 AMD shares with a total value of approximately $750,492.
This transaction comes at a time when AMD stock has been under pressure. Shares have declined 20.5% since the beginning of 2025.
Wood’s decision to increase AMD holdings is particularly interesting given the current uncertainty surrounding export controls on advanced semiconductor technology.
The purchase has elevated AMD to the 13th largest position in the ARKW ETF. AMD now accounts for 1.82% of the fund’s total portfolio.
This investment move appears to reflect Wood’s optimistic outlook on AMD’s upcoming financial results.
Earnings Preview Shows Promise
AMD is scheduled to release its first quarter 2025 earnings report on May 6.
Wall Street has high expectations for the chipmaker’s performance. Analysts are projecting earnings per share of $0.93 for the quarter.
If achieved, this would represent a robust 50% increase compared to the same period in 2024.
Revenue projections are equally strong. The consensus estimate calls for $7.12 billion in sales, which would mark a 30.1% jump year-over-year.
Recent analyst activity suggests the company might exceed these already impressive forecasts.
The Most Accurate Estimate for AMD’s earnings is currently higher than the Zacks Consensus Estimate. This has resulted in a positive Earnings ESP (Expected Surprise Prediction) of +0.74%.
When combined with AMD’s Zacks Rank of #3 (Hold), this indicator points to a high probability of the company beating earnings expectations.
Historical performance supports this outlook. AMD has surpassed consensus EPS estimates in each of the past four quarters.
In its most recent earnings report, the company posted EPS of $1.09, exceeding the projected $1.07 and delivering a positive surprise of 1.87%.
Market Sentiment Remains Cautiously Positive
Despite AMD’s recent stock price weakness, analyst sentiment remains favorable overall.
The stock currently carries a moderate Buy consensus rating based on input from 34 Wall Street analysts. This breaks down to 22 Buy ratings and 12 Hold ratings.
The average price target stands at $139.13, suggesting a potential upside of 44.8% from current trading levels.
It’s worth noting that consensus EPS estimates for the upcoming quarter have been revised downward by 2.44% over the past month.
However, this adjustment doesn’t appear to have significantly dampened the overall positive outlook for AMD.
Wood’s AMD purchase wasn’t made in isolation. On the same day, her funds also increased positions in e-commerce platform Shopify (SHOP) and several biotech companies.
At the same time, Wood reduced her stakes in long-time holding CRISPR Therapeutics (CRSP) and continued trimming exposure to Meta Platforms (META).
The upcoming earnings announcement will be a key test for AMD. Investors will be watching closely to see if the company can deliver on growth expectations.
Market reaction will likely depend not only on the headline numbers but also on management commentary regarding business conditions and future guidance.
Wood’s increased investment suggests confidence in AMD’s ability to navigate industry challenges and maintain its growth trajectory in the competitive semiconductor landscape.
