Cathie Wood sold more shares in the chip manufacturer after AMD’s strong price rally. At the same time, another holding was expanded.
• ARK Invest sells more AMD shares after strong rally
• Tempus AI receives millions in inflows from Cathie Wood
• Shift indicates greater focus on AI applications
Star investor Cathie Wood is consistently continuing her strategic restructuring. While the semiconductor sector has been massively moved by the latest figures, Wood’s investment company ARK Invest has further reduced its positions in chip giant AMD. As shown in ARK’s daily trading reports, Wood took advantage of the current price strength to reallocate capital into specialized AI platforms.
Million sales at AMD despite record week
The AMD partial sale by ARK Invest came immediately after a historic week of trading for the chipmaker. AMD had presented figures that triggered a price explosion to a new record high with a strong jump in sales and profits. Still, Cathie Wood reduced holdings by 8,045 shares on Thursday through her flagship fund ARK Innovation ETF (ARKK). The transaction was worth around $3.39 million. The move continues a trend of the past few days, in which ARK had already consistently sold AMD shares on Tuesday and Wednesday.
Profit taking after 67 percent rally
AMD’s performance data highlights the extent of the recent rally, which Wood is now using to realize profits. On a monthly basis alone, AMD shares on the NASDAQ recorded an increase of 67 percent. However, after this steep rise, the expected profit-taking in the market began on Thursday. The paper fell by 3.07 percent to $408.46 in regular trading. The slight corrective movement continued after trading with a further minus of 0.13 percent. However, in premarket trading on Friday it rose 1.65 percent to $415.21. Market participants see this as a technical consolidation after the valuation had been massively increased in a very short space of time.
Massive acquisitions at Tempus AI
While Wood is exiting established hardware celebrities such as AMD, the capital released will flow directly into the next generation of AI applications. The focus is increasingly on Tempus AI (TEM). On the day of the recent AMD sales, ARK acquired a total of 155,045 shares of Tempus AI through the ARKK and ARKG funds. The investment volume amounted to a remarkable 8.29 million US dollars. The day before, ARK had bought around 145,794 shares in the company. Tempus AI uses artificial intelligence for precision medicine and therefore fits exactly into Wood’s prey scheme, which prefers to invest in disruptive platform technologies.
Should investors follow?
Cathie Wood’s departure from AMD should not necessarily be seen as a vote of no confidence in the chipmaker’s fundamental strengths. Rather, ARK follows a disciplined portfolio strategy: profits in stocks with extremely high monthly gains, such as AMD’s 67 percent, are realized in order to build positions in more speculative but potentially higher-growth AI stocks such as Tempus AI. As AMD shareholders analyze the consolidation around $400 against the backdrop of the long-term AI trend, Wood’s entry into Tempus AI provides an indication that the focus of some growth investors is increasingly shifting from pure hardware to specialized AI applications in the software and medical industries.
Claudia Stephan, editorial team at finanzen.net
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