Cathie Wood’s Ark Invest has made a significant move in its portfolio, purchasing shares of Advanced Micro Devices, Inc. (AMD) while divesting its stake in rival chipmaker Nvidia Corp. (NVDA). Through its Ark Autonomous Technology and Robotics ETF (ARKQ), Ark bought 14,978 shares of AMD, with a total value of $1.58 million. This acquisition has increased AMD’s weighting in ARKQ to 0.60%. In contrast, Nvidia has a weighting of 2.74% in ARKQ, with the ETF holding 65,024 shares of the chipmaker.
This move comes after Ark’s Ark Genomic Revolution ETF (ARKG) sold 21,014 Nvidia shares, worth $9.79 million. Currently, ARKG holds about 110,478 Nvidia shares with a portfolio weighting of 2.54%. While Nvidia has been the best-performing stock in the S&P 500 this year, gaining 209% year-to-date, Cathie Wood’s firm has been divesting its Nvidia holdings due to its staggering valuation and the relative attractiveness of smaller AI plays in their early stages.
Although Nvidia outperforms AMD in terms of stock performance, there is a significant opportunity for AMD in the AI market. The company is set to increase production of its flagship M1300 AI chips in the fourth quarter, competing directly with Nvidia’s H100 AI chip, which currently powers most AI software and applications.
As of Monday’s session, Nvidia’s stock was down 0.86% at $451.78, while AMD fell 0.73% to $105.32.
Sources: Benzinga Pro, ARK Invest
– Advanced Micro Devices, Inc. (AMD): A global semiconductor company known for designing and manufacturing CPUs and GPUs for the gaming, data center, and professional markets.
– Nvidia Corp. (NVDA): A multinational technology company that designs graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip units (SoCs) for the automotive and mobile computing industries.
– ARK Autonomous Technology and Robotics ETF (ARKQ): An ETF managed by Ark Invest that focuses on companies involved in autonomous technology and robotics.
– ARK Genomic Revolution ETF (ARKG): An ETF managed by Ark Invest that invests in companies advancing genomics-related innovations, including CRISPR, therapeutics, molecular diagnostics, stem cells, and agricultural biology.
– S&P 500: A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.