Key Takeaways
- Cathie Wood’s Ark Invest acquired 101,356 shares of Nvidia valued at approximately $22.8 million spread across several ETFs
- The investment firm offloaded about $13.1 million worth of AMD stock, even as shares have surged 136% this year
- Ark reduced its Palantir holdings by selling approximately $3.8 million in shares
- Analysts continue rating AMD as a Strong Buy, with a consensus price target of $651.32 suggesting 28% potential gains
- AMD’s data center business posted 107% year-over-year growth in Q2, with substantial expansion anticipated through 2027
Cathie Wood’s investment firm, Ark Invest, executed notable portfolio adjustments on August 17, significantly increasing its Nvidia stake while simultaneously reducing holdings in Advanced Micro Devices and Palantir Technologies.
The firm acquired 101,356 Nvidia shares solely through its flagship ARKK ETF, with shares closing at $225.01. This transaction alone totaled approximately $22.8 million. Additional Nvidia purchases were made across Ark’s ARKF, ARKQ, ARKW, and ARKX funds.
This strategic accumulation coincides with Nvidia’s aggressive expansion in artificial intelligence infrastructure. The chipmaker recently obtained 4.25 gigawatts of data center capacity in Ohio designated for OpenAI operations. This facility has the potential to generate between $150 billion and $200 billion in revenue for Nvidia per system generation cycle.
Industry sources indicate that Nvidia and OpenAI are currently renegotiating their financial arrangement. The revised deal could see Nvidia’s potential guarantee reduced from $250 billion to below $120 billion, though OpenAI’s aggregate computing obligations through 2030 may still represent approximately $600 billion worth of Nvidia hardware.
AMD Divestment Despite Impressive Performance Metrics
While accumulating Nvidia shares, Ark simultaneously divested 25,917 AMD shares valued at roughly $13.1 million across its ARKF, ARKQ, ARKW, and ARKX portfolios.
AMD has delivered exceptional returns this year, with shares climbing 136% year-to-date and advancing 7% over the previous five trading days. The company’s data center division posted remarkable 107% year-over-year revenue growth during the second quarter.
Chief Executive Lisa Su projected that server revenue could expand by more than 80% year-over-year during the latter half of fiscal 2026. The company anticipates its data center segment will more than double in size throughout 2027.
Wood’s divestment hasn’t deterred Wall Street analysts from maintaining confidence in AMD. Bank of America’s Vivek Arya maintains a Buy rating with a $620 price objective, characterizing AMD as the most advantageously positioned CPU manufacturer in the industry.
Phillip Securities’ Yik Ban Chong takes an even more optimistic stance, assigning a $755 target price. His thesis includes expectations that Anthropic will implement 2 gigawatts of AMD’s MI450 GPU infrastructure beginning next year, which could contribute an additional $30 billion to AMD’s top line.
The consensus among 26 Wall Street analysts remains a Strong Buy rating for AMD, with an average target price of $651.32ārepresenting approximately 28% upside from current trading levels.
Palantir Holdings Also Face Reduction
Ark additionally liquidated 22,023 Palantir shares via its ARKF ETF. Based on Palantir’s closing price of $172.55, this transaction amounted to roughly $3.8 million.
Palantir has positioned its artificial intelligence strategy around developing software compatible with various AI models instead of creating proprietary systems. This methodology allows the company to circumvent substantial infrastructure expenditures while still capitalizing on AI sector expansion.
Other transactions executed by Ark on the same day included acquisitions of Cloudflare and Tempus AI stock, alongside complete exits from positions in Roblox and Twist Bioscience.
Wood’s decision to sell AMD shares seems to indicate strategic portfolio reallocation favoring Nvidia rather than signaling pessimism regarding AMD’s artificial intelligence growth trajectory.
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