A dramatic showdown is unfolding around Advanced Micro Devices (AMD), captivating market participants as two legendary Wall Street figures take opposing stances on the chipmaker’s future. In a classic divergence of investment philosophy, Cathie Wood of Ark Invest is liquidating substantial holdings while hedge fund manager David Tepper is making an aggressive bullish bet. This conflict emerges alongside concerning rumors about a key client, forcing investors to question whether the recent stock decline signals danger or presents a prime buying opportunity.
Billionaires Place Their Bets
The investment strategies of these financial titans could not be more contradictory. Cathie Wood has executed a significant pivot, offloading AMD shares valued at approximately $38.6 million. Her firm, Ark Invest, is reallocating this capital toward technology giants Alphabet and Meta. Wood’s underlying thesis suggests that the true value resides with the companies that utilize semiconductors, not necessarily with the manufacturers themselves.
Taking the opposite side of this trade is David Tepper of Appaloosa Management. The hedge fund legend dramatically reduced his fund’s stake in UnitedHealth, effectively liquidating the position to free up capital. This move financed the establishment of a substantial new holding in AMD, amounting to 950,000 shares. Tepper’s decisive action serves as a powerful endorsement of the chip-producing sector’s continued dominance and stands in direct opposition to Wood’s strategic retreat.
Market Jitters Triggered by Client Speculation
The recent bout of market nervousness and heightened stock volatility was reportedly ignited by a Bloomberg report. The publication suggested that Meta, a significant client for AMD’s server and AI chips, is considering a shift to sourcing its artificial intelligence processors directly from Google. Such a move would represent a severe blow to AMD, which has historically counted the social media behemoth as a major purchaser of its EPYC and Instinct product lines.
Should investors sell immediately? Or is it worth buying AMD?
Fears of Meta’s potential departure sent AMD’s share price tumbling, dragging down the broader semiconductor sector in its wake. However, the sell-off also attracted bargain hunters, who stepped in to defend crucial technical support levels visible on the stock’s dollar-denominated chart.
A Critical Juncture for the Stock
Despite the unsettling headlines, optimistic investors have reasons for hope. As long as the share price maintains its key technical footholds, the “Tepper scenario” of a favorable entry point remains a valid narrative. The stock concluded Thursday’s session at a closing price of 183.68 Euros, with market participants now watching to see if it can mend its recent technical damage.
Market participants are advised to monitor the situation closely. A decisive breach of the current support level would lend credence to Wood’s pessimistic outlook. Conversely, a successful stabilization and rebound would pave the way for Tepper’s substantial wager to pay off. Trading dynamics on today’s shortened “Black Friday” session, characterized by lower trading volumes, have the potential to amplify price swings.
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