AMD Shares Face 2027 Threat As ARK Sells $15M

Advanced Micro Devices, Inc. (AMD) currently stands as one of the market’s strongest-performing entities. Over the past year, the AMD stock price has surged by approximately 285%, including an impressive gain of nearly 180% in 2026 alone. By comparison, market leader Nvidia (NVDA) has climbed about 25% over the last year and roughly 21% in 2026. These statistics vividly highlight AMD’s remarkable market strength over recent months. Furthermore, AMD’s stock price recently reached a fresh all-time high, propelling the company’s market capitalization past the $1 trillion threshold. Although AMD has visibly outperformed Nvidia over the past year, investors should be aware of potential underlying risks. Let us examine them.

AMD Stock May Be At Significant Risk In 2027

Presently, AMD carries a price-to-earnings ratio that surpasses 85. In contrast, Nvidia’s price-to-earnings ratio rests at 26, while Broadcom’s is at 32. Consequently, AMD stock is markedly more expensive than shares of both Nvidia and Broadcom. This disparity suggests that AMD’s valuation may have disconnected from its actual growth potential, which could lead to complications down the line. As a result, the AMD stock price might undergo a market correction toward the end of 2026 or during 2027.

Investors must also weigh the recent actions of Cathie Wood’s ARK Invest, which offloaded more than $15 million in AMD shares. This transaction followed AMD’s climb to a new all-time high earlier in the month. Previously, the firm had already liquidated $110 million worth of AMD shares. While these sell-offs might simply represent profit-taking, they could also indicate something deeper. Even as ARK divested significant portions of its AMD stake, the firm boosted its exposure to Nvidia (NVDA) by purchasing nearly $81 million in Nvidia stock. Such a maneuver suggests the investment firm harbors stronger bullish sentiment toward Nvidia and potentially anticipates a sharp correction for AMD.