Cathie Wood Just Sold AMD Stock and Bought This AI Chip Stock Instead
Yahoo Finance ·
Cathie Wood founded Ark Invest in 2014, and the CEO has made a name for herself as an investor to watch when it comes to growth stocks. Ark provides exchange-traded funds (ETFs) that are heavily built around innovative new technologies with explosive growth potential, and the company takes a very active approach to portfolio management. In other words, Ark's investment teams tend to buy and sell stocks frequently for the funds that they manage. Notably, Ark offers investors a huge degree of transparency and regularly catalogs all of its trades even when it is not required to do so for regulatory purposes. Due to Wood's status as a high-profile growth investor and the high visibility of her company's trading activities, the investment firm's buying and selling moves tend to attract a significant amount of attention -- and Ark just sold Advanced Micro Devices and bought Nvidia ( NVDA -9.26% ) . Ark Invest CEO Cathie Wood. Image source: Getty Images. At the end of September, Ark made a notable move for its flagship Ark Innovation ETF . It sold shares of AMD valued at roughly $111.1 million and effectively used the proceeds from the sale to buy $81 million worth of Nvidia stock. The transactions seem to send a clear message: Ark believed that Nvidia was the more attractively valued of the two artificial intelligence (AI) semiconductor stocks. As of this writing, Nvidia is trading at roughly 22 times this year's expected earnings. Meanwhile, AMD is valued at roughly 63.5 times expected forward profits. The valuation disparity reflects expectations that AMD will be able to grow earnings significantly faster going forward.
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