AMD Stock At Risk In 2027: Is ARK’s $15 Million Sale A Sign?
Advanced Micro Devices faces potential risks in 2027 despite a soaring share price and a market capitalization exceeding $1 trillion, as high valuation metrics and recent stock sales by ARK Invest raise concerns among investors.
Advanced Micro Devices, Inc. (AMD) currently stands as one of the market’s top-performing enterprises. Over the past year, the AMD share price has surged by approximately 285%, including a roughly 180% increase in 2026 alone. By comparison, market leader Nvidia (NVDA) has gained about 25% over the past year and roughly 21% in 2026. These metrics highlight AMD’s pronounced market dominance over recent months, which recently propelled its stock to a fresh all-time high and pushed its market capitalization past the $1 trillion threshold. Although AMD has visibly 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 trades at a price-to-earnings ratio above 85, whereas Nvidia’s ratio sits at 26 and Broadcom’s at 32. This makes AMD substantially more costly than both Nvidia and Broadcom. Such a disparity may indicate that AMD’s valuation has outpaced its underlying growth outlook, a disconnect that could create future challenges and potentially trigger a stock price correction by late 2026 or into 2027.
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Additionally, Cathie Wood’s ARK Invest recently offloaded over $15 million in AMD shares following the stock’s record high earlier this month, adding to an earlier divestment of $110 million worth of AMD stock. While these sell-offs may simply represent profit-taking, they could also point to deeper concerns. Concurrently, ARK expanded its stake in Nvidia by purchasing nearly $81 million in NVDA shares. This portfolio shift suggests the firm harbors greater optimism for Nvidia while potentially anticipating a sharp correction for AMD.
