AMD Stock Falls in July Amid Chip Competition, but Support Holds as ARK Invests Heavily

Quick overview

AMD (NASDAQ: AMD) stock cooled off in early July after a blistering June rally, with investors weighing competitive risks, technical levels, and big institutional buying.

Powerful June Rally Followed by Early July Pullback

After surging 28% in June and breaking decisively above all major moving averages on the weekly chart, AMD shares lost steam as July trading began. Last Monday, the stock hit a short-term high of $147.75, completing an impressive rebound from its sharp Q1 sell-off.

However, momentum faded quickly. While broader U.S. indices recorded solid gains last week, AMD underperformed, dipping to $135.12 on Tuesday before stabilizing to finish the holiday-shortened week at $137.90.

Competitive Concerns Emerge After Zen 6 Leak

Part of the caution stemmed from new leaks about AMD’s next-generation Zen 6 Ryzen chips. Reports suggest Zen 6 may offer 24 cores—far fewer than Intel’s rumored 52-core chips aimed at the same market segment.

While Zen 6 could still boast extremely high boost clocks over 7 GHz, analysts warned that lower core counts might limit AMD’s competitiveness in premium workstation and data center markets—key arenas in the broader AI and high-performance computing (HPC) battle.

These concerns have added to profit-taking pressure after June’s run-up, leading traders to reassess valuations and the competitive outlook.

Watching Key Technical Support Levels

From a chart perspective, AMD is approaching its 100-week simple moving average (SMA) (green), which has historically provided strong support. A rebound from this level is plausible given its past performance.

However, if selling intensifies and the 100-week SMA breaks, the next major support is around $126 at the 50-week SMA (yellow). Technical traders will watch these levels closely to gauge whether AMD can consolidate and rebound or risk a deeper correction.

Valuation Remains a Key Narrative

Beyond technicals, AMD’s valuation continues to be a central talking point. The company’s trailing twelve-month (TTM) EPS is $1.37, confirming profitability, while its market capitalization stands at roughly $223.6 billion.

That translates to a steep P/E ratio of ~101—highlighting how heavily investors have priced in future growth, especially in the lucrative data center and AI accelerator markets where AMD has made competitive inroads.

ARK Invest Aggressively Adds to Holdings

Despite short-term weakness, ARK Invest has been ramping up its buying. On Monday alone, Cathie Wood’s firm acquired over 356,000 AMD shares across three of its ETFs—an estimated $51.24 million bet.

Combined with purchases of over 130,000 shares the previous week, AMD has now climbed to become ARK’s 11th-largest holding across its ETF lineup.

This aggressive accumulation underscores ARK’s confidence in AMD’s long-term story—even as traders navigate near-term competitive risks and valuation concerns.

Conclusion: AMD’s early July pullback comes after a powerful June surge, reflecting profit-taking, technical resistance, and renewed competitive scrutiny. Yet with institutional players like ARK doubling down and technical support levels still in play, the stock remains a focal point for investors betting on its role in the next phase of the AI and data center chip wars.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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