Kathy Wood’s Trading Activity Highlights AMD Purchase
Kathy Wood has been quite active on the trading floor lately, adjusting various positions as the market picks up. Interestingly, on the last trading day of June, she made just one stock purchase: more shares of Advanced Micro Devices (AMD) -3.25%. This addition was made through three of her exchange-traded funds (ETFs), marking the only name on her buy list that day.
Wood has experienced ups and downs since her impressive gains in 2020, bringing aggressive growth ETFs into the spotlight. Currently, she seems to be on the right track. The ARK Innovation ETF (ARKK -1.37%), which is one of her largest funds and now includes AMD stock, finished the first half of the year with a robust 24% profit. That’s significantly higher than the S&P 500’s (^GSPC -0.02%) 6% return during the same period.
Notably, Ark Invest has been busier than usual, especially as stock prices climbed before June. On Monday, the firm completed a few transactions, two of which were partial sales. Let’s dive deeper into the only purchase: AMD.
Recently, Ark Invest has been building its stake in AMD. Wood has been buying into the company, which produces microprocessors and graphics processing units (GPUs). Although stocks are down compared to last year, they have seen a 17% rise in 2025, significantly outpacing the broader market. In fact, AMD has surged by 86% since it reached its lowest point in early April.
It’s quite a turnaround; if AMD has nearly doubled in three months but only managed a 17% climb over the last six months, it reflects the challenges faced earlier this year. AMD was somewhat late to the AI revolution, and its revenue actually dipped by 4% in 2023, while competitor Nvidia (NVDA) -2.23% has seen its fiscal year revenues more than double.
AMD is gaining traction, especially in the data center sector. Although it faced a revenue decline of 18% year-on-year in the second quarter of 2023, the company’s growth rate has picked up in most quarters since then, with a notable 36% jump in the latest quarter. The recent well-received AI event sparked some positive analyst notes, too.
However, AMD is not on the same level as Nvidia. The latter, leading in market capitalization, reported a staggering 69% revenue increase in its past financial quarter. Yet, it’s clear there’s room for more than one victor, especially with the rising global demand for AI technologies.
Looking Back at Early Challenges
AMD shares stumbled in the first quarter of the year, largely because Nvidia’s strong market presence cast a long shadow. A significant blow came when reports revealed that a Chinese company could create generative AI using inexpensive, second-hand Nvidia chips. This raised concerns across the industry.
Additionally, escalating trade tensions with China added to the uncertainty. While investor fears have since settled somewhat, there are still cautionary notes regarding export limitations to China. Nvidia, for instance, faced a $4.5 billion loss last quarter and is projecting $8 billion in sales for the current one, while AMD is contending with a $700 million hit.
Despite these significant figures, AMD’s stock has been rebounding since early April, bolstered by strong demand for high-tech GPUs. Sales may be momentarily impacted by trade restrictions, but the company’s recent quarter saw the highest growth in nearly three years, with a 36% increase in revenue, driven mostly by a 57% surge in data center sales. Operating income and adjusted revenue also rose by 57% and 55%, respectively.
Even with an 86% stock surge since April 8th, AMD’s valuation remains in the range considered affordable. This year, the stock has traded at a forecast revenue multiple of 37 times, dropping to 25 for next year. While these valuations aren’t traditionally low, they come amidst expectations of a remarkable 48% revenue growth next year.
Wood’s focus on aggressive growth stocks is evident in her ETF portfolio, so it’s definitely notable that she opted to buy just one stock recently.
