TLDR
- ARK Investment Management bought 141,108 AMD shares valued at $28.2 million after the stock’s 17% drop
- AMD fell to $200.19 despite posting Q4 earnings of $1.53 per share on $10.27 billion revenue
- The chip maker’s Q1 guidance midpoint of $9.8 billion topped consensus but disappointed investors
- ARK Innovation ETF led purchases with 76,518 shares across Wednesday’s buying activity
- AMD recovered 2.3% as investors reconsidered the selloff following Wood’s vote of confidence
Cathie Wood stepped in when others stepped back. Her ARK Investment Management funds purchased 141,108 AMD shares Wednesday as the chip maker posted its largest single-day loss in nearly nine years.
Advanced Micro Devices, Inc., AMD
The combined position across five ARK ETFs totaled $28.2 million at closing prices. AMD finished the session at $200.19, down 17%.
The drop represented AMD’s worst trading day since May 2017. It came despite the company beating earnings expectations for the fourth quarter.
AMD reported adjusted earnings of $1.53 per share. Revenue reached $10.27 billion, climbing 34% year-over-year.
Both figures exceeded Wall Street forecasts. Data center revenue rose 39% to $5.4 billion, driven by strong demand for MI300 AI accelerators and EPYC processors.
Why Investors Sold
The earnings beat didn’t matter. Investors focused on forward guidance instead.
AMD projected first-quarter revenue between $9.5 billion and $10.1 billion. The midpoint of $9.8 billion surpassed the $9.39 billion consensus estimate.
But the stock had rallied over 40% from early October through Tuesday’s report. That run-up created high expectations for blowout guidance.
The forecast included approximately $100 million in Instinct MI308 chip sales to China. Investors wanted bigger numbers to justify the valuation.
How ARK Allocated Purchases
ARK Innovation ETF grabbed 76,518 shares, the largest purchase among the five funds. ARK Next Generation Internet ETF acquired 20,532 shares.
ARK Autonomous Technology & Robotics ETF bought 24,262 shares. ARK Blockchain & Fintech Innovation ETF added 10,811 shares.
ARK Space & Defense Innovation ETF rounded out the buying with 8,985 shares.
The buying spree extended beyond AMD. The funds also purchased Tesla, Tempus AI, GeneDx, CoreWeave, Bullish, Circle Internet Group, Brera, and Kodiak AI on Wednesday.
Other market participants followed Wood’s lead. AMD climbed 2.1% to $204.48 in Thursday’s premarket trading.
The stock gained 2.3% by press time. AMD now sits down 6.5% year-to-date despite the recovery bounce.
Track Record Speaks Volumes
Wood built her name on bold technology investments. Her 2025 performance validated that approach.
ARK Innovation ETF returned 35% last year. ARK Next Generation Internet ETF gained 37%.
The S&P 500 managed just 16% over the same period. The Next Generation Internet fund has beaten the market three years straight.
Analyst Bill Maurer sees opportunity in the weakness. He expects analyst estimates to climb in the coming days, making AMD’s valuation more attractive compared to Nvidia.
“AMD reported a solid quarter on Tuesday and gave decent guidance for the current period,” Maurer explained. “This post-earnings drop may be a good time to look at AMD shares.”
The $28.2 million bet represents a strong endorsement from one of tech’s most watched investors. Wood specializes in identifying companies at inflection points.
AMD closed Wednesday at $200.19, well below its recent peak above $240 earlier in the week.
