AMD Stock Got Hammered. Cathie Wood's ARK Funds Bought the Dip. -- Barrons.com

Dow Jones02-05 18:18

By George Glover

Cathie Wood's ARK Investment Management snapped up Advanced Micro Devices stock, buying the dip after the chip maker's shares had their worst day in more than eight years following so-so guidance.

Five ARK exchange-traded funds purchased a combined 141,108 AMD shares on Wednesday, a position valued at $28.2 million at the closing bell.

Other investors were also taking the opportunity to buy AMD stock. It climbed 2.1% to $204.48 in Thursday's premarket.

The ARK funds also bought shares in health technology company Tempus AI, electric vehicle manufacturer Tesla, biotech GeneDx, cloud-computing company CoreWeave, cryptocurrency exchange Bullish, stablecoin issuer Circle Internet Group, soccer club owner Brera, and autonomous trucking company Kodiak AI on Wednesday, according to daily trade information.

The funds loaded up on AMD following a brutal selloff for the chip maker, which tumbled 17% to $200.19 on Wednesday for its largest one-session decline since May 2017.

The stock cratered after AMD reported better-than-expected earnings and revenue for the fourth quarter, but failed to deliver strong enough guidance to justify a lofty valuation. Shares surged more than 40% between early October and Tuesday's earnings release.

Wood is well known for making big bets on buzzy tech, AI, and crypto stocks and crushed the market last year.

The ARK Innovation ETF climbed 35% last year, and the ARK Next Generation Internet ETF rose 37%. The S&P 500 added 16%. It was the third straight year that the Next Generation Internet fund beat the market.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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February 05, 2026 05:18 ET (10:18 GMT)

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