Cathie Wood’s ARKK reduces AMD holdings while increasing Nvidia exposure amid AI-driven valuation and growth trends.
Ark Investment Management’s flagship Ark Innovation ETF (ARKK) sold shares of Advanced Micro Devices (AMD) and bought Nvidia (NVDA) stock. The move reflects a strategic shift within the AI chip sector, where Nvidia leads in training while AMD focuses on inference and agentic AI opportunities.
ARKK has gained 49% over the past year but remains down 8.7% on average over five years. AMD, ARKK’s fifth-largest holding, has surged fourfold in the past year, pushing its valuation to 35.5 times 2027 estimates. The company secured two GPU partnerships worth an estimated $100 billion, signaling strong demand for its inference-focused chips.
Nvidia’s dominance in AI training, driven by its CUDA software, contrasts with AMD’s chiplet design, which offers memory advantages for inference tasks. The trade highlights diverging strategies in the AI hardware market.