Cathie Wood, CEO of Ark Invest, purchased additional shares of Advanced Micro Devices (NASDAQ: AMD) on the last trading day of June. This was the sole stock on her buy list, contributing to a successful first half for her Ark Innovation ETF (NYSEMKT: ARKK), which achieved a 24% gain, outperforming the S&P 500’s 6% return.
Wood’s fund has increased its AMD stake amidst a marketplace rally, with AMD’s stock soaring 86% since early April, despite being 17% higher in 2025. However, the company has faced challenges, including a 4% revenue decline in 2023, while NVIDIA’s revenue surged 69%. AMD’s latest quarter saw a 36% revenue increase, driven by a 57% growth in the data center business.
As of now, AMD is trading at 37 times projected earnings for the current year, expected to drop to nearly 25 next year, with analysts forecasting a 48% earnings growth for 2026. Despite pitfalls from export restrictions and trade tensions with China, the demand for advanced GPUs remains strong.
