Cathie Wood's Ark Invest sold a total of 23,573 shares of Advanced Micro Devices across its exchange-traded funds on 17th July, according to the fund's latest trade information. AMD stock fell 1% on Friday. The stock sale was worth around $11.7 million, considering the closing price on Friday.
Ark Invest has trimmed its AMD stake in recent months. In July, Wood's ETF sold a total of 137,421 shares of the chipmaker, worth over $60 million. The stock has tanked 11.1% in the past five trading days. The latest AMD selloff could be partly attributed to the pressure on the Micron Technology stock due to rising competition from a Chinese rival. Chinese memory-chip maker ChangXin Memory Technologies is preparing a Shanghai initial public offering to raise up to $9.8 billion.
However, deeper factors could be driving trading moves at Wood's hedge fund. AI critic Ed Zitron took markets by surprise after detailing in a 15,000-word post how OpenAI is destroying the wider AI trade with historic deals that reportedly 'remain on ice'.
OpenAI Singlehandedly Inflating an AI Bubble
AI critic Zitron believes that OpenAI's finances are unsustainable. The company intends to burn $852 billion by the end of 2030, and $50 billion in 2026 alone to meet its remaining performance obligations, but Zitron believes the company can only afford to pay the obligations after closing its latest funding round of over $100 billion.
The analyst highlighted that OpenAI has been driving chipmakers into a manufacturing supply chain crises by announcing major data centre deals that are yet to materialise.
Zitron highlighted that AMD's October 2025 agreement with OpenAI to build 6 gigawatt of data centres with the option for OpenAI to buy up to 10% of AMD shares, vesting over specific milestones. This deal was expected to bring in tens of billions of dollars in revenue. While the news boosted AMD shares by 34% back then, Zitron said he didn't find any evidence that OpenAI has purchased a single AMD graphics processing unit.
Same Story With OpenAI's Deal With Nvidia, Broadcom
Zitron also mentioned how Nvidia disclosed plans to invest up to $100 billion and build 10 GW of data centres with OpenAI, with the first gigawatt of capacity to be deployed in H2 2026.
Although Nvidia's stock price surged when the deal was announced, The Wall Street Journal reported a quarter later that the deal was 'on ice'. Around a quarter later, Nvidia pledged to invest $30 billion in private firms, but it remains unclear how much OpenAI received.
Even OpenAI's 10GW deal with Broadcom last year to begin deploying GPU racks by H2 2026 boosted Broadcom's stock by almost 10%, but the company reportedly had yet to figure out how to fund the initial purchase.
In June, OpenAI and Broadcom announced the chip had been 'developed from design to production in nine months,' which Zitron believes is the kind of 'blatant lie you tell when you know nobody in the media is watching.'
However, the market consensus appears bullish around AI and AMD despite Zitron's view. UBS recently raised its 12-month stock price target for AMD to $700 per share from $670. According to the brokerage, supply-chain checks signal more robust demand for AMD's AI accelerators through 2027, and even hinted that Amazon could become a major customer for the MI450X platform.
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