ARK Invest reduced its position in Advanced Micro Devices Inc (NASDAQ: AMD) after the chipmaker’s shares gained roughly 120% this year. The fund sold 37,977 shares across multiple ETFs on Wednesday for approximately $18.1 million.

The sale reflects portfolio management rather than a full exit. ARK Innovation ETF (NYSE: ARKK) retains about $195 million in AMD stock, representing around 3% of the portfolio. This holding remains significant despite the recent reduction.

Rotation Within AI Trade

The move coincides with broader market reassessment of AI semiconductor valuations. Nvidia Corp.’s strong outlook reinforced its dominance in AI accelerators, prompting scrutiny of rivals like AMD. AMD trades at a forward 12-month PE ratio of approximately 62.

AI-focused ETFs continued to rally following Nvidia’s earnings. Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) rose 2.1%, while iShares A.I. Innovation and Tech Active ETF (NYSE: BAI) gained 1.7%. These funds hold diverse semiconductor names including Micron Technology Inc (NASDAQ: MU), Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), and Broadcom Inc (NASDAQ: AVGO).

What the Numbers Show

The divergence between ARK’s specific trim and the broader ETF rally highlights a shift toward selectivity. While AMD has surged 121% year-to-date, investors appear to be rotating within the AI theme rather than exiting it entirely. The retention of a $195 million position suggests confidence in long-term growth despite short-term profit-taking.

Advanced Micro Devices Inc (NASDAQ: AMD) shares declined 1.10% to trade at $471.45 on Friday. The drop occurred against a backdrop of rising uncertainty regarding potential new semiconductor tariffs proposed by the Trump administration.

Tariff Uncertainty Adds Risk For AI Hardware

Reports indicate the administration is considering tariffs that could extend beyond raw chips to finished products containing semiconductors. This scope includes laptops, gaming consoles, and data center servers.

Commerce Secretary Howard Lutnick reportedly favors linking tariff relief for foreign companies to investments in U.S. chip manufacturing. While the White House dismissed reports as "baseless speculation" pending an official announcement, officials are also considering a phase-in period.

Technology companies are lobbying to soften the proposal. They warn that higher duties could slow AI data center construction by complicating semiconductor sourcing.

Analyst Consensus & Recent Actions

Despite the intraday decline, AMD carries a Buy rating with an average price forecast of $595.91. Recent analyst moves include:

• Raymond James: Upgraded to Strong Buy (Raises Forecast to $641.00) (Aug. 25)
• BMO Capital: Initiated with Outperform (Forecast $550.00) (Aug. 21)
• Argus Research: Buy (Raises Forecast to $625.00) (Aug. 6)

Top ETF Exposure

AMD holds significant weight in major technology ETFs, meaning fund flows will directly impact the stock price.

Because AMD carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

What the Numbers Show

AMD traded lower even as S&P 500 futures gained 0.04% at the time of publication. This divergence suggests the sell-off was driven specifically by sector-level tariff concerns rather than broader market weakness.