Cathie Wood Buys Into the Dip as Amd Stock Slides Nearly 23% After Q4 Results
The market reaction to Advanced Micro Devices' fourth-quarter update has pushed amd stock sharply lower, prompting high-profile buying from Ark Invest. The move matters because the company’s near-term guidance and data-center growth trajectory are shaping investor expectations for the rest of 2026.
Amd Stock: Development details
Shares of Advanced Micro Devices fell to roughly 23% below their recent peak after the company released fourth-quarter results that, while showing growth, left some investors unsettled. AMD posted 34% revenue growth in Q4, with its data-center revenue rising 39% year over year — an acceleration from 22% growth in the prior quarter. Management has maintained an ambitious multi-year target, forecasting that the data-center division will expand at a 60% compound annual growth rate through 2030 and that overall company revenue will grow at about a 35% CAGR.
The earnings release included guidance that for the next quarter sits above Street expectations, yet portions of the market judged the outlook cautious relative to the pace many had hoped to see from AI-driven demand. The company also outlined product timelines: the MI400-series GPU and the Helios platform are on schedule to ramp in the second half of 2026, and the MI500-series GPU — built on an advanced 2nm process and using HBM4E memory — is expected to launch in 2027.
Investors and analysts are weighing those milestones against valuation models and recent trading. A discounted cash flow analysis produced an implied intrinsic value of about $351. 04 per share, using a two-stage free cash flow approach and projecting free cash flow to reach roughly $37. 64 billion by 2030 from a trailing twelve-month free cash flow of about $6. 81 billion. At current trading levels near $200, that model implies the shares trade at a roughly 43% discount to that intrinsic estimate. Meanwhile, AMD’s price-to-earnings ratio sits at 76. 44x compared with a semiconductor-industry average near 43. 02x and a peer-group average around 68. 87x.
Context and escalation
The sell-off followed a quarter that combined a beat-and-raise profile with guidance that some market participants perceived as conservative. That tension — solid short-term metrics paired with cautious near-term tone — amplified volatility in a stock that had climbed from about $210 at the start of the year to more than $250 by late January. The rapid ascent set up the stock for a pronounced pullback once the latest results landed.
Market watchers and analysts have taken divergent views. Phillip Capital analyst Yik Ban Chong highlighted expected demand from hyperscalers and AI developers, noting forecasts that OpenAI would deploy 1GW of infrastructure using AMD’s MI450 GPU beginning in the second half of 2026 and into 2027. The analyst’s stance underpins a buy rating and a price target that points to substantial upside over a 12-month horizon. At the same time, consensus on the Street reflects both confidence and caution: 23 analysts rate the shares a Buy while eight have them at Hold, with an average target around $283. 69.
Immediate impact
The pullback has had measurable effects on investor behavior and holdings. Ark Invest’s CEO Cathie Wood responded to the weakness by accumulating 191, 436 shares of AMD across her five ARK ETFs over the past month, treating the price drop as a buying opportunity. The stock has also shown shorter-term weakness: a roughly 3. 5% decline over the past seven days and a near-23% pullback from recent highs over the past month.
For shareholders, the combination of a pronounced decline and a high P/E ratio has sharpened focus on earnings execution and product ramps. The company’s stated roadmap for MI400/Helios in 2H26 and MI500 in 2027 ties revenue expectations to specific hardware rollouts, which in turn influence infrastructure purchasing plans at cloud providers and model developers.
Forward outlook
Confirmed near-term milestones include the planned ramp of the MI400 series and Helios platform in the second half of 2026 and the scheduled launch of the MI500 family in 2027. Management’s long-range projection — 60% CAGR for data-center revenue through 2030 — remains the central benchmark investors will use to judge execution. What makes this notable is that quarterly trends show improvement in data-center growth (22% in Q3 to 39% in Q4), suggesting the company is moving toward its target even if the pace is not yet at the 60% annualized level.
Upcoming quarters will confirm whether the company’s product ramps and hyperscaler demand convert into the sustained data-center expansion management forecasts. Analysts’ models, large-scale deployments by customers, and the cadence of product availability will be the primary evidence-based signals markets monitor going forward.
