ARK Invest, the investment firm founded by Cathie Wood, recently made strategic purchases of chip stocks as the semiconductor earnings season gains momentum. One of the stocks acquired was Advanced Micro Devices, Inc. (AMD), with ARKQ, the ARK Autonomous Technology & Robotics ETF, amassing 54,289 shares of the company. This purchase was valued at approximately $5.24 million based on AMD’s closing price of $96.43.
Additionally, ARKQ bought shares of Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) on the same day. The ETF added 3,046 TSMC shares worth about $261,926. TSMC is a leading independent pure-play foundry that designs chips for major global tech companies such as Apple, Nvidia, and AMD.
While TSMC’s third-quarter earnings and revenue declined from the previous year due to weak end-market demand, the results exceeded expectations. Analysts are now turning their attention to AMD, which is scheduled to release its third-quarter results on Tuesday after the market close.
Industry experts anticipate that AMD’s earnings per share may decrease to $0.64 from $0.67 in the same quarter last year. Moreover, revenues are expected to show a 4.40% year-over-year decline to $5.37 billion. John Vinh of KeyBanc believes that AMD will deliver in-line to slightly higher results and offer similar guidance. However, he notes a potential risk to the guidance due to a slight delay in the ramp of the MI300A at El Capitan.
Following ARK Invest’s purchases, both AMD and TSMC experienced positive premarket trading on Monday. AMD rose by 1.25% to $97.64, while TSMC added 1.16% to $86.99.
Frequently Asked Questions (FAQ):
1. Who is Cathie Wood?
Cathie Wood is the founder of ARK Invest, an investment management company known for its focus on disruptive innovation.
2. What is ARKQ?
ARKQ is the ARK Autonomous Technology & Robotics ETF, an exchange-traded fund managed by ARK Invest. It aims to capture long-term growth opportunities in the autonomous technology and robotics industry.
3. What is AMD?
Advanced Micro Devices, Inc. (AMD) is a multinational semiconductor company that designs and develops computer processors, graphics cards, and related technologies.
4. What is TSMC?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is the world’s largest independent pure-play foundry. It specializes in manufacturing semiconductor chips for various technology companies.
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