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AMD's third-largest stakeholder, Mubadala Investment Co., sold off 22 million shares worth more than $400 million on Tuesday.

AMD sank more than 3% following the filing by the Abu Dhabi based investment firm.

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AMD sank more than 3% Tuesday after its third-largest shareholder — Abu Dhabi-based Mubadala Investment Co. — sold 22 million shares at a market value of $427.7 million, according to data compiled by Bloomberg.

The investment firm held 56.9 million shares of AMD as of its most recent filing in August 2017, equating to more than 5% of the chipmaker's total equity. Only Vanguard and BlackRock have larger stakes.

It's not clear when Mubadala amassed the large stake in AMD, but the investment likely netted a hefty profit. Shares of the company have risen 37% since last August, when the 57 million share stake was disclosed, easily outpacing the S&P 500's 14% gain in the same period.

AMD on Wednesday reported second-quarter earnings that topped Wall Street expectations, sending its stock price higher by more than 6%. Cryptocurrency revenue, however, fell back to negligible amounts after the unexpected boon, the company's chief financial officer said on the earnings call.

"Mubadala has been a long-term institutional investor in AMD over the past 10 years and this transaction is in line with its strategy to optimize its ownership in the company," Brian Lott, a company spokesperson, said in a statement to Business Insider.

"This transaction represents a major success story for Mubadala in the technology sphere and is in line with Mubadala’s investment strategy of monetizing mature assets to deliver attractive commercial returns."

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