Cathie Wood Seeks Deals: 3 Stocks She Recently Purchased

Cathie Wood’s Rocky Start to 2026

Cathie Wood, the co-founder and CEO of Ark Invest, has had a challenging start to 2026. The firm’s flagship exchange-traded fund has dropped 10% since the year’s beginning. Meanwhile, the fund’s performance over the past year is up only 5%.

Wood hasn’t changed her investing approach; she continues to buy her preferred stocks during downturns. Recently, Ark added to positions in companies like Advanced Micro Devices (NASDAQ: AMD), Broadcom (NASDAQ: AVGO), and Coinbase Global (NASDAQ: Coin).

Interestingly, despite the rough market, there’s ongoing discussion about the potential of artificial intelligence (AI) to create wealth, with reports on lesser-known companies that provide essential tech to giants like Nvidia and Intel.

Advanced Micro Devices, in particular, has seen its stock drop 24% from its recent high last month, largely due to disappointing financial results announced earlier this month, which included a staggering 17% drop post-announcement.

On the upside, the quarter itself was strong, with revenues climbing 34% to $10.3 billion. This growth was bolstered by significant gains in central processing units, graphics processing units, and microprocessors. The data center segment saw a 39% increase, while client and gaming segments grew by 37%, leading to four consecutive quarters with over 30% revenue growth.

Moreover, AMD’s operating margins expanded, resulting in a tripling of profitability in the fourth quarter. Yet, despite this progress, the market’s excitement surrounding AMD as a key player in AI seems to have waned, particularly with guidance that fell below analysts’ expectations.

Current earnings forecasts for the next quarter are less than what some analysts anticipated, with even the projected $10.1 billion sales ceiling indicating a drop from the previous quarter’s $10.3 billion. However, it’s worth noting that AMD is still expected to achieve at least 30% revenue growth based on current guidance. Analysts project sales growth of 34% this year, increasing to 39% in 2027. Valuing AMD at 19 times next year’s profit target could be attractive, especially if trade tensions ease.

Broadcom’s stock has also faced challenges, down 20% from its peak in December. Nevertheless, long-term investors are likely less concerned; the firm has seen sixfold growth over the past five years and is now considered a solid player in the booming AI semiconductor arena.

While Broadcom’s sales growth rate for FY2025 has been revised downwards—from 44% last year to 24%—analysts still anticipate a 52% increase in sales this fiscal year. Investors may appreciate not just capital gains, but also the company’s increasing dividend, raised for 15 consecutive years.

Coinbase has experienced the steepest decline of the three, with a 63% drop since its summer peak. The overall interest in cryptocurrencies has significantly diminished, and if this trend continues, Coinbase, which manages 12% of the world’s crypto assets, could face serious issues.

The latest financial report from Coinbase didn’t provide much comfort, showing declines in total revenue and trading income, along with rising operating costs. If things don’t improve this quarter, the outlook for early 2026 could be grim, particularly as projections for subscription and services revenue hint at an 18% decrease.