Cathie Wood sold AMD stock on a post-report rally and invested in rival Amazon

Funds managed by Cathie Wood's investment firm ARK Investment Management (ARK Invest) made a series of large trades on May 5 in shares of chip maker Advanced Micro Devices (AMD), e-commerce platform Shopify and cloud provider CoreWeave.

ARK Invest reduced its position in AMD by selling off the company's securities from the portfolios of several exchange-traded funds (ETFs) at once. In total, it sold about 46,000 shares of the chip maker for $16 million, Investing.com reported, citing ARK's trading newsletter. Benzinga states that the profit-taking followed the publication of AMD's strong first-quarter report, after which its shares soared more than 15% on the premarket.

In addition, ARK Invest decided to partially close its position in CoreWeave, realizing about 99 thousand shares for $12 mln. The sale took place during the rebound of CoreWeave quotations, which are recovering from the recent drawdown, provoked by investors' doubts in growth prospects due to partnership with OpenAI. Increased turbulence of CoreWeave quotations is fueled by a significant share of short positions - over 21% of shares in free float, Benzinga points out.

At the same time, ARK Invest funds increased their stake in Amazon's competitor Shopify, buying a total of almost 256 thousand shares. Investing.com estimated the value of the acquired stake at $33 million. Quotes Shopify on Ma 4 slipped by 15.6%, but the platform for managing online stores reported passing a milestone in the first quarter of 2026: its turnover reached $100 billion. In addition, the company's quarterly revenue was higher than forecasts.

According to FactSet, the Wall Street consensus forecast for AMD, CoreWeave, and Shopify shares has been "above market" (Overweight, buy recommendation) in recent months, but their target prices indicate different return potential. Shopify's securities look the most undervalued: the average target of $155 per unit implies a 44% increase in their quotations.

Cathie Wood rose to prominence in 2020 when her flagship ARK Innovation exchange-traded fund delivered a 153% return, becoming one of the main beneficiaries of a pandemic rally in tech stocks. Reuters wrote that ARK Innovation topped Morningstar's ranking of U.S. actively managed equity funds that year, and ETF.com named it ETF of the Year for 2020.

Wood's strategy is often contrasted with Warren Buffett's value-based approach. While the "Oracle of Omaha" looks for assets that are cheaper than their intrinsic value and bets on sustainable businesses, the founder of ARK Invest invests in fast-growing, often unprofitable and often expensive valued companies whose value depends largely on hopes for future growth.

According to the analytical service WhaleWisdom, the largest position in Cathie Wood's portfolio remains Tesla shares: the carmaker accounts for 8.7% of ARK Invest's assets, and the market value of the stake exceeds $1.3 billion. Shopify (4.25%) and the streaming service Roku (4.24%) follow the leader by a significant margin - investments in these companies are valued at approximately $640 million each. The top ten largest assets of the fund are completed by the crypto exchange Coinbase, data analysis service provider Palantir, AMD, online broker Robinhood, biotech startup CRISPR Therapeutics, developer of AI solutions for healthcare Tempus AI and manufacturer of electronics testing systems Teradyne.

This article was AI-translated and verified by a human editor