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

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 (NYSEMKT: ARKK) 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 (NASDAQ: AMD) while buying shares of rival Nvidia (NASDAQ: NVDA). Let’s see if investors should be following suit.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »

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…