TLDR
- Cathie Wood’s ARK funds acquired 141,108 AMD shares worth $28.2 million after Wednesday’s 17% plunge
- AMD dropped to $200.19 despite beating Q4 estimates with $1.53 EPS and $10.27 billion in revenue
- Q1 revenue guidance of $9.5-$10.1 billion exceeded forecasts but failed to meet investor expectations
- ARK Innovation ETF purchased 76,518 shares, the largest buy among the five participating funds
- The stock rebounded 2.3% as other investors joined ARK in buying the dip
Cathie Wood made a big bet on Wednesday. Her ARK Investment Management purchased 141,108 AMD shares as the chip maker endured its worst trading session in nearly nine years.
Advanced Micro Devices, Inc., AMD
The five ARK ETFs collectively spent $28.2 million on the position. AMD closed at $200.19 after dropping 17% during the session.
It marked the largest single-day decline for AMD since May 2017. The crash came hours after the company reported strong quarterly earnings.
AMD delivered adjusted earnings of $1.53 per share on revenue of $10.27 billion. Revenue jumped 34% compared to the same quarter last year.
The company’s data center business performed well. Revenue in that segment climbed 39% to $5.4 billion, powered by MI300 AI accelerators and EPYC processors.
The Guidance Problem
Wall Street liked the results but not the outlook. AMD projected first-quarter revenue between $9.5 billion and $10.1 billion.
The $9.8 billion midpoint beat the $9.39 billion analyst consensus. However, investors expected more after AMD shares rallied over 40% since early October.
The guidance includes roughly $100 million from Instinct MI308 sales to China. That detail didn’t change sentiment.
Investors had priced in stronger numbers based on the stock’s recent run. The valuation couldn’t support modest guidance.
Breaking Down the Purchases
ARK Innovation ETF made the biggest move, buying 76,518 AMD shares. ARK Next Generation Internet ETF followed with 20,532 shares.
ARK Autonomous Technology & Robotics ETF added 24,262 shares. ARK Blockchain & Fintech Innovation ETF picked up 10,811 shares.
ARK Space & Defense Innovation ETF completed the buying spree with 8,985 shares.
Other investors saw the same opportunity. AMD stock rose 2.1% to $204.48 in Thursday’s premarket session.
By press time, the stock had gained 2.3%. AMD remains down 6.5% for 2026 despite the recovery.
Wednesday’s shopping list extended beyond AMD. The ARK funds also bought Tesla, Tempus AI, GeneDx, CoreWeave, Bullish, Circle Internet Group, Brera, and Kodiak AI.
Wood’s Winning Strategy
Cathie Wood has earned her reputation through contrarian tech bets. Her strategy delivered massive returns in 2025.
ARK Innovation ETF climbed 35% last year. ARK Next Generation Internet ETF surged 37%.
Both funds demolished the S&P 500’s 16% gain. The Next Generation Internet fund has now outperformed the market three consecutive years.
Analyst Bill Maurer views the selloff as a buying opportunity. He expects analyst estimates to rise in coming days, improving AMD’s valuation relative to competitors like Nvidia.
“AMD reported a solid quarter on Tuesday and gave decent guidance for the current period,” Maurer noted. “This post-earnings drop may be a good time to look at AMD shares.”
The $28.2 million purchase signals Wood’s confidence in AMD’s long-term prospects. Her funds specialize in identifying technology companies positioned for disruption.
AMD traded at $200.19 at Wednesday’s close, representing a steep discount from recent highs above $240.
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