Key Points
Cathie Wood of Ark Investment has trimmed her stake in Advanced Micro Devices (NASDAQ: AMD) while acquiring more shares of Nvidia (NASDAQ: NVDA). As of late April, the Ark Innovation ETF (NYSEMKT: ARKK) is up 49% over the past year but down 8.7% over the last five years. AMD remains Wood’s fifth-largest position, having quadrupled in value over the past year, with a valuation of 35.5 times 2027 analyst estimates.
AMD has secured two significant GPU partnerships worth an estimated $100 billion, positioning itself well in the AI market. The company is also poised to benefit from the growing demand for central processing units (CPUs) as a ratio of GPUs to CPUs is expected to shift from 8:1 to 1:1 with the rise of agentic AI. Nvidia, on the other hand, posted Q1 revenue of $81.6 billion, an 85% increase, and forecasts Q2 revenue to reach $91 billion—driving a forward P/E of 16 times fiscal 2028 estimates.
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