Ark Investment’s Cathie Wood Just Sold AMD Shares and Bought Nvidia. Is That the Right Move for Investors? | The Motley Fool

Ark Investment’s Cathie Wood has made a name for herself as a champion of stocks with potentially disruptive technologies. Her flagship Ark Innovation ETF (ARKK 1.16%) has had mixed results, up 49% over the past year but down 8.7% on average over the last five, as of the end of April.

Nonetheless, when she makes moves, it tends to be notable. Recently, she has been trimming her stake in Advanced Micro Devices (AMD 3.37%) while buying shares of rival Nvidia (NVDA 0.43%). Let’s see if investors should be following suit.

AMD: An inference and agentic AI opportunity

While Wood has trimmed her stake in AMD, it remains her fifth-largest position. The stock has quadrupled over the past year, driving its valuation to 35.5 times 2027 analyst estimates. That likely played a role in her recent decision to take some profits.

However, AMD is at the intersection of two powerful artificial intelligence trends that should help power its results going forward. The first is inference, with its graphics processing units (GPUs) well suited to take share. Inference is less technically demanding than training, which Nvidia’s CUDA software does best, while its chiplet design packs in more memory, which is important for inference.

Today’s Change

(-3.37%) $-16.52

Current Price

$473.81

Key Data Points

Market Cap

$775B

Day’s Range

$437.23 – $505.00

52wk Range

$115.06 – $546.44

Volume

2.7K

Avg Vol

37.4M

Gross Margin

47.09%

The company has locked in two large GPU partnerships and…